Canadian Broadband Warms in 2001

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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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