Boom Times For U.S. Broadband Usage Expected To
Continue.
The number of U.S. homes using high-speed
Internet service is expected increase by more than a third by
the end of the year, a market research firm said.
In a report released this week, Strategy
Analytics predicts the number of broadband households will
increase to 33.5 million by the end of 2004 from 25 million
today.
Cable modem users are expected to account for 5.2
million of these new subscribers, and DSL service is predicted
to add 2.9 million households. About 400,000 homes will use
alternate broadband access technologies, such as fiber,
wireless, and two-way satelite services.
In addition, the market research firm predicted
major changes in the competitive positioning of telephone and
cable TV companies delivering broadband.
Cable companies are expected to offer more
compelling product bundles that include video, data and
telephone services. To compete, telephone companies that have
initially attracted DSL customers through low prices will need
strong partnerships with satelite TV operators to keep pace.
Cable companies that have moved aggressively in
the voice-over-Internet protocol arena include Time Warner,
Comcast and Cox. Among telecom and satelite TV operators, SBC
and EchoStar, respectively, are building a strategic alliance.
