NEW YORK (AP) - Cable companies attracted more Internet subscribers than
phone companies did in the first quarter, reversing a 3 1/2-year trend,
according to a research report Thursday.
The 19 largest cable companies in the U.S. added 1.19 million broadband
subscribers in the January-to-March period, according to a tally by Leichtman
Research Group.
Phone companies added 1.01 million DSL customer in the same period, the
report said.
Since the third quarter of 2004, phone companies had been adding subscribers
faster than cable, closing in on cable's lead in total subscribers. But that
lead is now widening, with cable companies having a total of 34.7 million
subscribers compared with 29.5 million at the phone companies.
"With telephone companies generally curtailing prior aggressive price-based
offers to woo subscribers, the telcos added about two-thirds as many broadband
subscribers as a year ago," wrote Bruce Leichtman, president of the firm.
Phone companies have moved resources into upgrading their networks rather
than marketing basic DSL service. Verizon Communications Inc. is replacing its
copper network with fiber, and added a net of just 4,000 subscribers to its
copper-based DSL service in the first quarter. It gained 262,000 customers for
its fiber-based service.
AT&T, the country's largest Internet service provider, is focused on raising
DSL speeds in some areas so it can provide TV service over phone lines.
Meanwhile, cable companies are poised to boost their maximum available
Internet speeds this year with a relatively cheap upgrade using new cable modem
technology.
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