Telcos add more broadband subs in Q2, cable ops still lead market

Thu, 08/16/2007 - 9:26am
Traci Patterson

In the second quarter, the 19 largest U.S. cable and telco providers, which account for nearly 95 percent of the overall market, added more than 1.7 million net high-speed Internet subscribers, according to Leichtman Research Group Inc. 

The telcos added about 925,000 subscribers, representing about 54 percent of the net additions, but the cable operators have a 54 percent share of the overall broadband market, with about a 5.1 million subscriber advantage over the telcos. The top broadband providers now account for nearly 58 million subscribers, with cable companies serving 31.5 million and telcos serving about 26.4 million.

The broadband additions were the lowest since the Q2 2004, though, and were about 400,000 fewer additions than in the year-ago quarter. Charter Communications was the only provider to record significantly more net broadband additions than a year ago. All of the top telcos had fewer net broadband additions in the second quarter than in last year’s second quarter.

Of the cable ops, Comcast added the most Internet customers in the quarter - 330,000 - for a total of about 12.4 million. Time Warner Cable came in second, adding 188,000 for a total of nearly 7.2 million. Charter’s 60,300 additions pushed its total past 2.5 million, and Cox Communications added 60,000 to total about 3.6 million. Cablevision added 50,000 for a grand total of about 2.2 million.

As for the telcos, AT&T led the pack with 398,000 additions, giving the company about 13.3 million total broadband subscribers. Verizon added 288,000 for a total of nearly 7.7 million, and Qwest added 100,000, pushing the company past 2.4 million Internet subscribers.

“While net broadband additions may be beginning to wane slightly, tens of millions of consumers will add high-speed Internet over the next few years,” said Bruce Leichtman, president and principal analyst for Leichtman. “In a somewhat tighter market, broadband providers will need to be increasingly prudent in the subscribers that they acquire in order to help minimize churn.”


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