Almost half of households (49%) in Canada are now connected to the Internet via high-speed broadband, as the U.S. lags significantly behind - only 34% of U.S. households have a high-speed Internet connection. These are among the key findings of two studies conducted by Toronto-based Solutions Research Group, among more than 2,800 randomly-selected Canadians and Americans in May/June 2005.

"Broadband penetration is a significant marker for the delivery of on-demand video content and entertainment - the wave of the not-too-distant future," said Kaan Yigit, Study Director. "While Canada is somewhat behind the U.S. in areas such as wireless or HDTV, on this very important score Canada is at least 2 years ahead of the curve. The reasons for this include the heritage and priority differences of cable and telephone companies in Canada vs. the U.S., as well as geographic and socio-economic factors," added Yigit.

Among the research highlights:

- 63% of Canadian households are now on the Internet (49% broadband 14% dial-up). In comparison, 57% of American households are on the Internet (34% broadband, 23% dial-up).

- Cable firms are slightly ahead of telephone companies as the leading choice for broadband Internet in both Canada and the U.S.

- The percentage of Canadian homes with broadband Internet grew rapidly between 2003 and 2005 - from 31% in 2003 to 40% in 2004 to the current level of 49% in 2005.

- The number of broadband Internet homes in Canada now exceeds the number of digital TV homes (i.e., homes with digital cable or satellite TV), while the reverse is true in the U.S.

- Internet activities that require high bandwidth are, not surprisingly, more popular in Canada, especially among younger age groups. 25% of Canadian Internet users in the 12-29 age group have downloaded a full-length movie or a 30- or 60-minute TV show off the Internet in the past, compared to 16% of American Internet users in the same age group.

The Canadian market information for this release comes from comprehensive telephone interviews with 1,776 Canadians 12 and older in May/June 2005 conducted as part of Fast Forward(TM), Solutions Research Group's ongoing consumer trend research program. The results of the survey are accurate to (+/-) 2.3 points for the population as a whole, 19 times out of 20.

The U.S. market information for this release comes from a random national sample of 1,062 Americans 12 and older as part of Solutions Research Group's new Digital Life America research program via telephone in May/June 2005. The results of the overall survey are accurate to (+/-) 3.0 points for the population, 19 times out of 20.