Growth Slows in U.S. Broadband Market

Telecom News Editorials Reports Glossary

6:10 am on November 25, 2007 | Category: Telecom Services, Internet

America’s 19 largest cable and telephone providers – representing about 94% of the country’s broadband market – added 2.1 million high-speed internet subscribers in the third quarter, according to Leichtman Research Group. This represents a 20% slowdown when compared to the same period last year, when 2.66 million broadband customers were added.

Leading high-speed ISPs now account for more than 60 million broadband subscribers. 27.5 million of these customers get online with DSL while the remaining 32.5 million use cable modem technology.

Q3 marked the first time in three years that cable companies added as many customers as DSL providers. DSL has been gaining on cable for some time now, and appeared poised to take a majority of the market, but has lost much of its momentum this year.

As of September 30, leading broadband providers had added 6.76 million customers this year, down from 7.97 million in the first three quarters of 2006.

“Through the first three quarters of the year, net broadband additions are down 15 percent from last year’s record setting pace,” said Leichtman Research president, Bruce Leichtman. “However, the top broadband providers are still on-track to add over 9 million subscribers in 2007 – a total that is very respectable given the maturing state of the broadband market.”