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Cable subs will surge to 57.5 M globally by 2005

Mon, 06/25/2001 - 8:00pm
Anne Kerven

The worldwide cable modem market surged last year by 178 percent, but that number will fall in the United States in the next few years, even as subscriptions grow in Western Europe, a study says. Worldwide, the number of cable modem subscribers will reach 57.5 million by 2005.

IDC's Worldwide Cable Modem Equipment and Services Market Analysis and Forecast, 2000–2005, says the number of American cable modem subscribers grew 171 percent to 3.8 million, or more than half the worldwide market. That edge over the next few years will start going to DSL, the report says, and the United States' share of subscribers will fall to 36 percent.

But Western Europe's share will grow from 1 million in 2000 to nearly 17.7 million in 2005, and its share of the worldwide subscribers will grow from 14 percent to 31 percent, the study says.

IDC spokeswoman Amy Harris says telecommuters and power Internet users started demand in the residential arena, and future growth will be driven by "video-rich" and "image-rich" Internet applications.

A caveat: Cable modems face such issues as scaling problems, installation and provisioning challenges, and competition from other technologies, the study says.

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