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Canadian Broadband Warms in 2001

By Multi Channel News Staff -- Multichannel News, 3/22/2002 6:38:00 AM

If you want to see really strong broadband growth, head north.

According to a report from The Yankee Group, Canadian broadband boomed in 2001, even as U.S. markets were plagued by Excite@Home Corp.'s woes and digital-subscriber-line failures.

That may have something to do with the different stance on price taken by Canada's MSOs and telcos. While U.S. operators generally raised their fees for broadband service, Rogers Cable Inc. and Bell Canada hawked entry-level services that offered more modest bandwidth for a lower price, the report noted.

'The end game here is much more the access portion of the equation,' according to Yankee research director Mark Quigley. 'This is a long-term bet for the service providers, and ownership of the customer will be the key to future success.'

That will likely bode well for 2002. In addition to these 'broadband-lite' packages, Yankee predicted that some providers will introduce content packages aimed at adding layers of value for the consumer.

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