Cable Maintains High Speed Lead

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Cable MSOs continued to grow high-speed subscribers at a two-to-one ratio DSL
in the second quarter, according to Leichtman Research Group.

LRG said cable operators added 900,000 high-speed data subscribers in the
period, compared to 460,000 DSL additions.

There are now 13.5 million combined broadband Internet subscribers in the
U.S.

'High speed Internet growth was clearly a bright spot in an otherwise very
challenging quarter for the cable industry,' said LRG president Bruce
Leichtman.

Indeed, save for Time Warner Cable, most major MSOs reported declines in
basic cable growth in the period.

Look for Cox Communications cable and high-speed data products on Best Buy
store shelves in Phoenix, Las Vegas, Macon, Ga., and Hampton Roads, Va., later
this year.

The two companies signed a deal in which the Phoenix and Hampton Roads stores
will sell Cox Digital Cabler starter packs and Cox High Speed Internet Fast
Connect self-installation kits.

In both markets, Cox will have in-store kiosks.

The Las Vegas and Macon stores plan to launch with digital cable offerings,
then add additional products later this year.

DVD players are the fastest growing consumer high-tech product, according to
the latest CTAM Pulse, which focused on penetration rates for high-tech
devices.

While cell phones, at 68 percent, leads the list, followed closely by PCs at
67 percent and cable TV at 65 percent, DVD penetration grew from 13 percent in
2001 to 29 percent in 2002.

High-speed Internet access via cable doubled from 7 percent to 14 percent,
year over year. DBS penetration stood at 20 percent, while digital cable
penetration stood at 18 percent.

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