A Fifth Of US Homes Take Broadband In 2003

According to new data from Leichtman Research Group (LRG), the country’s twenty largest cable and DSL providers – representing about 98% of the market – added a combined 7.4 million new subscribers in 2003. The top cable companies took 60% of broadband additions, with DSL picking up the remainder.

Cable now has a 63% share of the market, reaching 15.5 million broadband subscribers, compared to 9.1 million for DSL. However, Q4 2003 was the strongest ever quarter for the DSL operators, which added nearly 870,000 new subs; this is 45% of the broadband additions in the quarter.

There is still room for further growth in the broadband sector, as LRG’s research shows that only 49% of dial-up subscribers are happy with their internet access service. By contrast, almost three quarters of broadband subscribers said that they are happy. About one third of dial-up customers are considering upgrading to broadband, according to the study.

“Clearly the market for broadband has become more competitive in the past year and competition will only intensify as the number of broadband subscribers in the US doubles over the next four years,” said Bruce Leichtman, president and principal analyst for LRG.

“Yet it is premature to proclaim that DSL is catching up to cable. As the totals indicate, this would be akin to congratulating a basketball team that was losing by 20 points after the 1st quarter for only being down by 24 points at half time.”