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Bell Triple-Play No Match for Cable

As cable companies continue raising the speeds of their broadband offerings, they will maintain their dominance in that market for the foreseeable future and penetrate the voice market faster than Bell companies penetrate video, according to a report released by Convergence Consulting.

�Even with regional Bell operating companies raising residential broadband speeds due to network investments, we forecast cable will continue to add more residential broadband subs per annum than RBOC/telcos until the end of the decade, and retain dominant share into the next decade,� Convergence said.

Cable companies will hold 62 percent (or 26 million) of the nation�s residential broadband subscribers by the end of this year, while telcos will hold 37 percent (or 15.7 million), according to the consultancy. By the end of 2007, those numbers will shift to 59 percent (or 35 million subscribers) and 40 percent (or 24 million subscribers), respectively.

At the same time, cable companies will increase their share of the U.S. residential telephony market from about 5 percent (or about 5.5 million subscribers) at this year�s end to 12 percent (or 13.5 million subscribers) in 2007 and 21 percent (or 23 million subscribers) at the end of 2009, the consultancy said. Meanwhile, telcos� share of the TV market will reach 2 percent (or 1.8 million subscribers) by the end of 2007 and 5 percent (or 5.4 million subscribers) by the end of 2009.

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