Price wars lure more to subscribe to high-speed Internet services

Middle- and working-class Americans signed up for high-speed Internet access in record numbers over the past year, apparently lured by a price war among phone companies.

Broadband adoption grew 59 percent during the 12 months ending in March among households with incomes between $30,000 and $50,000, according to a survey being released today by the Pew Internet and American Life Project.

It grew 40 percent in households making less than $30,000 a year. Among blacks, it increased 121 percent, according to the study.

Middle- and lower-income households still lag higher-income households. Among the $30,000-$50,000 households, 43 percent have broadband, compared with 68 percent of households over $75,000.

Overall, 42 percent of adult Americans, or 84 million people, have broadband, compared with 30 percent a year ago.

Phone companies' monthly fee for digital subscriber lines averaged $32 in December, compared with $41 for cable.

A separate survey by Leichtman Research said DSL has overtaken cable modems in popularity among middle-income households, though cable modems still make up the majority of home broadband connections, at 52 percent.

Wal-Mart Stores

High energy costs chip away at sales

Wal-Mart Stores reported a 2.3 percent gain in sales in May at stores open at least a year. The company had predicted a gain of 2 to 4 percent.

The world's biggest retailer said higher gas and utility prices continue to affect customers.

Major retailers are expected to release detailed information about May sales Thursday.

Intel

Chip maker opens Malaysia design site

Intel, the world's largest computer-chip maker, opened a $40 million design and development center in Malaysia's northern Kedah state, tapping lower costs and increasing demand for computers in Asia.

Intel, whose chips run more than 75 percent of all personal computers, is turning to Asia as PC sales slow in the U.S. and Western Europe.

Last week, it said it will partner with Indian companies to make low-cost computers.

The Malaysian center in Kulim will design computer parts, including motherboards and server chips to be used worldwide. It will hire 900 people, bringing the total number of employees in Kulim to more than 3,000, Intel said.

The company employs 10,600 people in Malaysia and has invested $3 billion in the country.

Boingo Wireless

Acquisition widens airport Wi-Fi access

Wi-Fi access provider Boingo Wireless has reached a deal to acquire Concourse Communications Group, which operates wireless access networks in a dozen major North American airports. Financial terms of the deal were not disclosed.

Compiled from Bloomberg News and The Associated Press