News

Study: Broadband Growth Still Robust

10/14/2005 6:24 AM Eastern

A new research report from Sanford C. Bernstein & Co. suggested that broadband growth remains strong, with the largest players still showing strong gains.

“The consensus view of the broadband market is that broadband’s halcyon days are behind it, a conclusion with which we disagree,” Bernstein said.

Erosion in the dial-up market is accelerating, as is the incremental penetration rate among broadband providers. Broadband penetration stands at 37 million homes versus 25 million for dial-up. The largest broadband players continue to show the biggest quarterly gains in broadband penetration, with telcos adding subscribers due to low-priced offers and cable taking advantage of voice-over-Internet-protocol bundles.

While cable has a 54%-46% market-share lead over digital subscriber line, the actual number among residential subscribers is 10 points higher, Bernstein estimated, because the regional Bell operating companies’ DSL numbers include business customers. In the pure residential market, Bernstein estimated that cable has a 63.8% market share, versus DSL’s 36.2%.

September