DSL Overtaking Cable Broadband In US
Cable connections in US broadband households are declining, with research and consulting firm, Strategy Analytics, predicting digital subscriber lines (DSL), fibre and other types of broadband to make up over 10% of the market by 2010.
The global firm shows cable to be steadily losing favour with US broadband customers, estimated to fall to 57% of the total market by the end of 2005, down from 59% in 2004 and 62% in 2003.
DSL, however, is forecast to perform strongly over the coming years, with Strategy Analytics predicting its market share to increase to 41% by the end of 2005, up from 39% in 2004.
These projections are in line with analyst eMarketer’s estimate released earlier this year, showing DSL creeping up to over 40% of the market by the end of this year (see US Broadband Adoption Falls Behind UK).
Commenting on the predictions, eMarketer senior analyst, Ben Macklin, said: “Until now, the battle for the US broadband market has been between cable and ADSL. Alternative broadband technologies have not had much of an influence.”
Macklin continued: “Alternative broadband technologies have not had much of an influence. New technologies such as fibre-to-the-home, VDSL and WiMAX will become more readily available over the next four years, but eMarketer does not expect alternative broadband technologies to garner significant market share in the short to medium term.”
James Penhune, director of the Strategy Analytics broadband media and communications research program, attributes the rise of DSL to competitive pricing strategies from providers.
He explained: “Even as they race to launch new services, such as IP-based TV, SBC, Verizon and other telcos are using aggressive price cuts to maintain subscriber growth in DSL.”
The latest figures from broadband analysis company, Point Topic, show that globally, DSL operators dominate the world broadband market, with 107 million out of the 164 million broadband subscribers opting for the technology, giving it a 65% market share (see Global Broadband Lines Reach 164 Million).
Cable modem broadband subscribers are only higher in the North American market, where both USA and Canada have cable broadband shares of 59% and 52% respectively.
DSL clearly leads in other major broadband markets, especially in Western Europe, where the high-speed lines are at least 70% of the total market in France, Germany, UK and Italy. In Germany, DSL lines form almost 100% of national broadband lines.
