Skip to main content

Cable MSOs Still Dominant in U.S. Broadband

Consumers of broadband services in the U.S. are apparently confused by the telco's shifting marketing strategy. DSL was previously viewed as the 'low-price leader,' but recent price increases and the elimination of some promotional offers may have driven prospective customers to the cable multi-system operators (MSO).

DSL services from U.S. telcos continues to challenge the MSO's dominant market share for broadband high-speed data (HSD) subscribers, but a Kagan Research survey shows in the third quarter of 2006 cable operators actually made gains in the battle to capture new customers.

According to Kagan, DSL corralled 51 percent of net subscriber ads for the three months ended September 30, compared to 56 percent in Q2, with HSD cable modems taking the 49 percent balance of Q3's 2.7 million total net adds.

"One good quarter alone does not establish a firm trend," notes Kagan senior analyst Ian Olgeirson. "But the cable industry's focus on bandwidth increases -- coupled with the positive impact of its $99 triple-play bundle -- will likely contribute to the industry's rebound in market share."

DSL had been growing much faster by appealing to price-sensitive laggard dial-up Internet access subscribers migrating to broadband. Cable modem service averages nearly $40/month while DSL is just over $35/month. However, both of these U.S. price points are still significantly higher than similar broadband service offerings in the leading Asia-Pacific and European markets that have greater competition.

HSD access penetration stood at 59 percent of total U.S. Internet households at the start of the year, according to Kagan. The U.S. telcos are rolling out all fiber-optic infrastructure for improved high-speed service, but fiber-to-the-home is a gradual introduction with only small patches of geographic coverage.

At Q3 2006, U.S. telco Verizon had a total of just 522,000 HSD subscribers for its FiOS fiber-based services -- versus the nearly 30 million total cable modem subscribers and 23.6 million total DSL subscribers.

The cable industry is marketing HSD, TV and voice services in the so-called triple play bundle over a wide geographic area, grabbing market share by spreading discounts across its three offerings. Moreover, there doesn't appear to be any meaningful policies coming from the FCC that will likely affect the current duopoly 'status quo' within the U.S. market.

Popular posts from this blog

Worldwide Contactless Payments will Exceed $1 Trillion

There's a huge upside opportunity for digital payment innovation in America. As of December 2017, Juniper Research estimates that only 9 percent of the total payment cards in circulation within the U.S. market was contactless-enabled -- this translates into just over 100 million cards. While this is a significant installed base -- around 13 percent of total chip cards issued in the U.S. market -- Juniper estimates that only 5.5 percent of the cards were actually used to make contactless offline point-of-sale purchases in 2017. This translates into about 6 million contactless cards used for payments. That's relatively low in comparison with more advanced markets such as Canada (60 million) and the UK (108 million). Contactless Payment Market Development Juniper Research forecasts that driven by payment cards and mobile wallets, in-store contactless payments will reach $2 trillion by 2020 -- that represents 15 percent of the total point of sale transactions. Furthermore

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente