Research: Cable Tops DSL at Home

3/01/2001 4:42 AM Eastern

Of the 7.8 million homes in the United States and Canada with high-speed
broadband connections, 70 percent of them use cable modems, Kinetic Strategies
Inc. concluded in its latest round of research.

Specifically, 5.5 million of those customers use cable modems, with the other
2.3 million going the way of digital subscriber line, Kinetic said, adding that
64 million homes in North America -- about 59 percent of all homes passed in the
region -- were in systems capable of cable-modem services.

AT&T Broadband and Time Warner Cable lead the cable industry with more
than 1 million cable-modem subscribers each, Kinetic estimated.

Kinetic also found that MSOs finished 2000 with 4.8 million installed cable
modems after adding about 1 million in the fourth quarter. Cable's year-end
figures more than doubled the 1.8 million from DSL, which added 553,000
residential customers in the fourth quarter.

Interoperable Data Over Cable Service Interface Specification-based modems
also continued to make inroads by the end of last year. Modems based on DOCSIS
surged about 600 percent in 2000 versus 1999, representing more than 6 million
units shipped, Kinetic said. North America accounted for 68 percent, or 4.8
million DOCSIS units, by year's end.

On the vendor front, Motorola Broadband Communications Sector led DOCSIS
cable-modem manufacturers with 38.1 percent of the market, followed by 3Com
Corp. (17.2 percent), Toshiba America Consumer Products (13.2 percent) and
Thomson Multimedia (11.4 percent).

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