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Report: DSL closes gap in Q1

Mon, 05/10/2004 - 8:00pm
Jeff Baumgartner

Domestic DSL and cable operators found themselves in a virtual dead-heat in terms of subscriber additions after DSL had its strongest showing ever in the first quarter of 2004, reports Leichtman Research Group Inc.

In the period, DSL providers added roughly 1.17 million net subscribers, beating its previous best by 300,000 subscribers, LRG said, citing research of the 20 largest cable and DSL providers in the U.S., which represent about 98 percent of the total consumer high-speed Internet market.

U.S. cable and DSL service providers together added a record 2.34 million subs in Q1, giving them a combined 26.9 million.

Despite DSL's surge, major cable MSOs maintained a 6.4 million-subscriber lead over DSL and a market share of 62 percent compared to DSL's 38 percent, LRG said.

DSL's strong showing in Q1 also lends further proof that recent price cuts by top telcos have been effective in building market share on its own rather than eroding cable's.

"Over the past few quarters DSL providers have increased their focus on broadband with an emphasis on lower pricing," said LRG President and Principal Analyst Bruce Leichtman, in a release. "Thus far, it appears that DSL's new-found success has expanded the overall broadband market, rather than solely coming at the expense of cable's growth."

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