Skip to main content

U.S. Broadband Prices Up, DSL Down

The price gap between cable broadband service and phone carriers' digital subscriber lines widened to an all-time high in August, according to a survey by SG Cowen. Cable-modem service was, on average, 75.8 percent more expensive than DSL during the month, up from a 53.3 percent gap in July. While phone carriers cut prices � the average DSL price decreased by 9.2 percent � cable companies raised them.

Leading the price decline was Verizon Communications which rolled out a slower service that cost just $14.95 a month, with a free month of service with a one-year commitment. By contrast, cable broadband service got 4.1 percent more expensive, on average. Comcast Corp. raised prices an average of 7.9 percent, while Time Warner Cable raised by 5.8 percent, according to the survey. Aggressive price cuts have helped phone carriers make headway in the broadband market and challenge cable companies, analyst Lowell Singer said in a note.

During the first and second quarters of 2005, cable companies captured 47.8 percent and 46.3 percent of net new broadband subscribers, respectively, down from 50.3 percent in 2004 and 60.8 percent in 2003. SG Cowen estimates that cable companies will capture about 47.3 percent of net new broadband subscribers in 2005.

Popular posts from this blog

Trillion-Dollar Smart Power Grid Transformation

The global energy landscape is undergoing a significant transformation. Renewable energy sources like solar and wind are rapidly gaining ground as we transition towards net-zero emissions. However, this transition hinges on a crucial but often overlooked factor: the modernization and expansion of our aging power grids across the globe. For decades the backbone of our electricity delivery system has been largely static. The influx of variable renewable energy sources like solar and wind presents a new challenge. Smart Power Grid Market Development Integrating these resources effectively requires a Smarter, more Responsive grid that can handle fluctuating power generation and efficiently distribute it across vast distances. This is where a new trillion-dollar energy market growth opportunity emerges. According to a recent worldwide market study by ABI Research, global investments in public grid digitalization and transmission network expansion must exceed $4 trillion by 2030 to meet our