Cable Modems Widen Lead

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The North American cable-modem customer count topped 10.7 million at the end
of August, bolstering a 65 percent share of the residential high-speed-data
business.

Digital-subscriber-line customers came about 8,000 shy of 6 million,
according to researcher Kinetic Strategies Inc.

Analyzing the second quarter, Kinetic said cable-modem-customer additions
dipped for AT&T Broadband, Time Warner Cable and Cox Communications Inc.
compared with the first period.

But they rose sequentially for Comcast Corp., Charter Communications Inc.,
Rogers Cable Inc., Mediacom Communications Corp. and Insight Communications Co.
Inc.

Operators added 1 million cable-modem customers over the second quarter --
about the same as in the first quarter -- while DSL gains dropped 9 percent to
502,000.

Time Warner Cable set the standard, adding 271,000 cable-modem subscribers in
the three months ending June 30.

By contrast, AT&T Broadband (137,000) and Comcast (128,400) added a
combined 265,400 with a combined cable footprint 85 percent larger than Time
Warner Cable's, Kinetic noted.

On the DSL side, additions fell 30 percent for BellSouth Corp. and Qwest
Communications International Inc., while Verizon Communications was flat and SBC
Communications Inc. rose 17 percent.

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