Cable Will Dominate Broadband Service Delivery Through 2008, Says Yankee Group
With help from DSL, broadband households will exceed narrowband by late 2006
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BOSTON--(BUSINESS WIRE)--Aug. 2, 2004--According to the Yankee Group Broadband Subscriber Forecast, DSL is increasing net adds by almost 4 million more than previously anticipated. The U.S. Broadband market is on track to comprise more subscribers than the overall U.S. narrowband market by mid to late 2006.
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At the end of the first quarter of 2004, Comcast led the BSPs in total subscribers with almost 5.7 million cable modem subscribers, while SBC led DSL with just under 4 million total DSL subscribers. Generally, more than 95 percent of cable modem users are residential consumers; an estimated 15 to 20 percent of DSL customers are small business customers.
Your analogue BT line is converted into an Asymmetric Digital Subscriber Line via a modem at your home and at the BT phone exchange. Cable Your home computer is connected to the internet via a high speed cable modem using a cable network.Other technologies for receiving broadband are also available, such as satellite, radio or optical wireless and power line. These methods however tend to be relatively expensive or not yet widely available. For these reasons, the uSwitch.com broadband comparison and switching service does not yet include them.
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Cable television services are delivered to consumers via networks of fibre optic cables. The signals are decoded using a set top box, which is provided by the service supplier as part of a subscription package. Digital cable customers can also access telephone services and broadband internet services. Digital cable can carry around 200 services (TV and radio), plus interactive services. All Public Service Broadcasting channels (including Five) are available with any cable TV subscription package.
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"The Yankee Group forecast predicates itself on the ability for both broadband and content service providers to generate additional services over the network that will drive consumer utilization such as voice, games, photos, and video," says Patrick Mahoney, Yankee Group Consumer Technologies & Services analyst. "We forecast that by year-end 2008, there will be more than 52 million broadband households. The 2004 forecast is marginally higher than the 2003 forecast, because of slightly higher than expected take rates, as well as continued low pricing by DSL, increased speeds and availability."
We offer broadband Internet service from a range of service providers, however, we currently do not market services from all of the Internet service providers. Also, your cable company may not offer broadband service to your specific household or may not have listed your address in our database. I have cable television, but the site says I cannot get my cable company’ speed Internet service.
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The Yankee Group takes the DSL business base into account when creating the forecast. The business subscribers are examined on an ongoing company-by-company basis.
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For interviews, contact Patrick Mahoney, pmahoney@yankeegroup.com
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THE YANKEE GROUP (http://www.yankeegroup.com)
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The Yankee Group is the global leader in communications & networking research and consulting. The company helps businesses understand the opportunities, risks and competitive pressures of developing, deploying and consuming products and services that drive communication or information exchange. Now in its fourth decade, the Yankee Group is based in Boston with offices throughout North America and Europe.
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Contacts
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The Yankee Group
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Kimberly Vranas, 617-880-0214
kvranas@yankeegroup.com
