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(Continued)     October 16, 2004 edition
"Broadband usage is on an upward trajectory," says Jeffrey Grau, eMarketer senior analyst and author of the report. "But Internet user growth is leveling off."

In other news on Thursday, Google released software that will simultaneously search files on a computer hard drive, as well as on the Internet. Other companies have released desktop search products in the past year, and competitors Ask Jeeves and Yahoo are expected to follow suit. But Google's integration of the product into its home page, and the company's strong brand awareness among Internet users, ups the ante in what is expected to be a tough battle with Microsoft over search technology.

``This is the newest extension of the browser wars,'' said Jupiter Research senior analyst Joe Wilcox, referring to Netscape Communications' epic battle with Microsoft in the 1990s. ``Microsoft has to be worried.'' Google was to announce the software at the Digital Life conference this morning in New York.

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