DSL Growth May Have Peaked, Suggests Verizon CEO

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6:15 am on September 21, 2007 | Category: Business, Telecom Services, Internet

Verizon CEO, Ivan Seidenberg, aimed to dispel expectations of a seasonal uptick in summer DSL sales this week at a Goldman Sachs investor conference.

“My operating people like to use seasonality as an excuse as to why numbers go down,” Seidenberg said when asked if DSL subscriber growth might rebound in the third quarter. “There is no seasonality with respect to the market’s acceptance of innovation.”

“Is DSL hitting the point where we’re getting more penetrated, and it’s less effective?” he said. “Of course.”

Verizon’s net DSL additions dropped 64% in the second quarter, according to a report by analysis firm, Broadband Trends, which attributed much of the decline to seasonal trends.

With nationwide DSL penetration of under 55%, however, and a budding fiber-optic broadband network just getting off the ground, Verizon’s high-speed internet division still has plenty of room for growth, according to Mr. Seidenberg.