More than 7.1 million lines connected homes and businesses to the Internet in the year 2000 -- a 158 percent growth over the pervious year, according to a report released Thursday by the Federal Communications Commission (FCC).

The FCC's report also showed subscribers in 75 percent of the nation's zip codes, representing all 50 states -- a 19 percent jump since 1999.

Digital subscriber line (DSL) connections made the biggest gains in 2000, with 2 million lines and a whopping 435 percent increase in subscriptions over 1999. Cable access accounted for 3.6 million connections, with a growth rate of 153 percent.

Satellite and wireless connections were up just over a hundred thousand subscribers, but grew 224 percent.

Need for Speed

In keeping with the statistics, national Internet service provider (ISP) EarthLink (Nasdaq: ELNK) experienced similar growth patterns. John Ellis, director of broadband products for EarthLink, told NewsFactor Network that 1999 ended with 25,000 DSL subscribers, while the year 2000 closed with 215,000 -- an 860 percent increase.

Ellis attributed the growth to a change in people's tastes.

"Americans are used to convenience, and that's one of the things high-speed access brings -- the ability to cut costs by not having that second phone line and having the always-on access," said Ellis.

EarthLink plans to continue the broadband push, Ellis said, and is working with phone and cable companies, including AOL Time Warner, to bring access to more areas of the U.S.

"I definitely think that over the coming years broadband will become the norm for a majority of the population," said Ellis.

Special Promotions Draw Others

Stephanie Fairleigh, an East Coast writer and new mother, told NewsFactor she signed up last summer for cable Internet access with her local cable company as a result of a special promotion for reduced installation and modem fees.

Fairleigh feels the US$40 she pays each month for speedy access is worth it, compared to her 28K modem.

"What's great about it is that it's always fast, and it's always on. You don't have to click on anything, it's just on," said Fairleigh.

Still Providing a Boost?

If only half of Americans had broadband Internet access, a study by Criterion Economics predicts, as much as $200 billion could be added to the economy through the use of online shopping, entertainment, traditional telephone and healthcare services, and even reduced commuting.

If nearly all of the U.S. were to subscribe, according to the study, the country could see nearly $400 billion infused into the economy.

Not All News is Good

Despite the 2000 statistics, broadband companies have not been immune to this year's tech industry economic problems.

Earlier this week, Covad Communications Group Inc., one of the last large wholesalers of DSL, announced its intention to file for bankruptcy to eliminate its $1.4 billion debt and reorganize the company.

While no layoffs or changes in services to customers are expected, Covad joins NorthPoint Communications in filing Chapter 11. NorthPoint has shut its doors, and DSL providers Flashcom and Winfire have also gone under.