“Even though the residential DSL market slowed significantly after the first quarter of 2000, residential DSL broadband access services are becoming increasingly available in the home as providers are able to extend their services to the edge of the network,” says Ernie Bergstrom, a senior analyst with In-Stat.
“Price drops will have to take place soon to foster customers as cable and DSL access begin to experience more pricing parity leaving value added offerings, as the only differentiator between the big two residential broadband access services. DSL price wars have already started in Asia and are certain to reach our shores in the near future, forcing DSL and cable service providers to rethink their marketing strategy.” he added.
Cahners also predicts that U.S. DSL residential broadband subscribers will total 3.6 million by the end of 2001 and exceed 13.5 million by the end of 2005 and that DSL services in the U.S. will generate in excess of $7 billion of revenue by 2005. However, Cahners also forecasts that cable modem access will remain the favoured method of broadband access until late 2004.
