Daily Research News Online no. 3560 - Renewed Surge for Broadband

Renewed Surge for Broadband

November 12 2004

Broadband growth in the US has bounced back after appearing to be slowing last quarter. A study by Leichtman Research Group, Inc. (LRG) found that the twenty largest cable and DSL providers -about 95% of the market - achieved a record 2.3 million net additions in the third quarter of 2004.

The top 20 now have more than 30.9m high-speed Internet subscribers: just under 18.8m cable and nearly 12.2m DSL. In the second quarter, DSL growth outstripped cable for the first time ever but this has turned around again - the top cable providers adding 1.28 million subscribers (55%) and DSL around 1 million (45%). In terms of the total subscriber base (as opposed to new additions) the top cable broadband providers have a 61% share of the total market, and DSL 39%.

Comcast's 549,000 net additional subscribers in the quarter represent 44% of the cable total and nearly a quarter of all broadband additions in the quarter.

President and Principal Analyst Bruce Leichtman says cable and DSL providers responded aggressively to the slight downturn last quarter, with discounted introductory offers. 'The seasonal variations in the broadband market that have taken place this year are likely to continue in the future, but without further slashing of prices, total net additions similar to this quarter may be difficult to replicate'.

Sources: The Companies and Leichtman Research Group, Inc.
* Bright House Networks and RCN subscriber counts are estimates
** Adelphia subscriber counts do not include properties owned by the Rigas family
Top cable and DSL providers represent approximately 95% of all subscribers
Company subscriber counts may not represent solely residential households.

Leichtman Research Group, Inc. is online at www.LeichtmanResearch.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.