Study: Cable Modems Still the Home Choice


Oyster Bay, N.Y.

-Helped in part by early market entry, the cable modem will continue to dominate the residential high-speed sector,
Allied Business Intelligence

forecast in a recent report.

The report, titled "Cable Modems Worldwide: High-Speed Internet Access Over Cable Networks," predicted that such services would rise from 3.3 million subscribers in 1999 to approximately 58.6 million subs in 2005, equating to an annual growth rate of 61 percent. The U.S. will lead that charge, jumping from 2.1 million cable modem subs in 1999 to about 17 million in 2005, the research firm said. By comparison, digital subscriber line providers tallied about 500,000 customers by year-end 1999.

ABI predicted high-speed cable modem services will remain primarily within the residential arena, as the service is easier to install and doesn't suffer from the same "line qualification" problems as DSL. At the same time, ABI said it expects a "small minority" of businesses to eventually embrace cable modem technology.