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Cable modems are residential choice says survey

The number of subscribers to data over cable services will dramatically increase over the next few years, a recent report by Allied Business Intelligence (ABI) of Oyster Bay, NY has shown.According to...


November 1, 2001  


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The number of subscribers to data over cable services will dramatically increase over the next few years, a recent report by Allied Business Intelligence (ABI) of Oyster Bay, NY has shown.

According to the study, Cable Modems Worldwide: High-Speed Internet Access Over Cable Networks, the number of subscribers worldwide will jump from 3.3 million in 1999 to 58.6 million in 2005 — a compound annual growth rate of 61 per cent. The U.S. is expected to lead this increase, with a jump from 2.1 million subscribers in 1999 to 17 million subscribers in 2005.

ABI says its report looked at the two technologies that allow reasonably priced, high-speed data access to the residential user: cable modem and digital subscriber line (DSL). The technology research firm says that cable has been the clear leader so far, due in large part to its earlier market entry. As of the end of 1999, high-speed cable Internet service had 2.1 million U.S. subscribers, while DSL had half a million subscribers.

ABI says that cable’s continued growth will stay primarily within the residential arena, but there will be a small minority of businesses that will choose cable as their access medium of choice. The report found that cable will maintain its number one position in this market, partly due to its ease of installation. In addition, says ABI, cable networks — unlike phone lines — generally do not present “line qualification” problems, which may delay or prevent DSL installation.


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