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Remote workers will drive broadband demand

Wed, 07/25/2001 - 8:00pm
Anne Kerven

Remote workers (aka telecommuters) in the U.S. are driving increased demand for broadband services, according to a new study from research firm Cahners In-Stat Group.

By 2005, more than 60 percent of the U.S. workforce will be considered remote/telecommuters, driving continued need for remote connectivity and high-speed Web access, the report suggests.

The trend for U.S. businesses to have employees working from multiple remote sites, including telecommuters' home offices, has accelerated recently. Increased availability of cable modem and DSL services has helped enable this recent increase in remote workers, says Sys Kneko Burney, director of eBusiness Infrastructure & Services for In-Stat.

However, businesses face a growing number of challenges supporting their remote workforce, according to the report. Remote workers can strain IT resources and are becoming more of a priority for business decision-makers in the U.S. This presents service providers with opportunities such as offering VPN connectivity and hosted applications to address the changing needs of these workers. Outside services, including broadband solutions, are becoming the best choices for these customers, the report suggests.

The research also says there are nearly 3 million remote offices in the U.S. business market today - a segment that will grow to nearly 5 million by 2005. It also says that U.S. businesses are expected to spend more than $160 billion on communications services and equipment in 2001, and nearly $260 billion by 2005.

Cahners In-Stat is owned by the same parent company as CED magazine.

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