[Random-bits] Cameron Crouch on Yankee Broadband projections

James Love love@cptech.org
Mon, 31 Jan 2000 11:19:12 -0500


Thanks to Andy Schwartzman for this pointer:

http://www.pcworld.com/pcwtoday/article/0,1510,15035,00.html


Broadband Is Coming at High Speed 

The Yankee Group reports that the battle
between cable and DSL will make for
high-speed growth in broadband.

by Cameron Crouch, PC World 
 January 28, 2000, 4:13 p.m. PT 

You and your neighbors could have high-speed Internet access sooner than
you might think.

The U.S. market for residential high-speed Internet services will grow
to 3.3 million subscribers this year, and reach 16.6 million subscribers
in 2004, according to a report released today by the Yankee Group. The
study, "Cable Modems and DSL: High-Speed Growth for High-Speed Access,"
cites cable industry consolidation and competition from local phone
companies as driving the expected growth in broadband.

The installed base of residential high-speed Internet access for 1999
was 1.4 million, with nearly 80 percent of those homes using cable
modems, the study found. By the end of this year, 41 percent of U.S.
households will have access to cable modem service but only 24 percent
will have access to digital subscriber line.

Consolidation among cable operators will eliminate some of the cost
barriers for small          operators to upgrade to two-way cable
modem-capable infrastructures, causing cable modem deployment to grow,
suggests Bruce Leichtman, director of Yankee Group's Media &
Entertainment Strategies practice, in a release announcing the report.
But as local telephone carriers make competing DSL service widely
available at better prices, the report predicts that cable's share of
the residential broadband market will shrink to 42 percent by the end of
2004.

   [snip]

-- 
James Love, Consumer Project on Technology
P.O. Box 19367        | http://www.cptech.org
Washington, DC 20036  | mailto:love@cptech.org
Voice 1.202.387.8030  | fax 1.202.387.8030