Broadband growth remains robust, cable remains in the lead

Leichtman Research Group has reported that the 19 largest cable TV and telco broadband service providers in the U..S — representing about 93 percent of the market — acquired 3.4 million net additional broadband subscribers in 2010. The leading providers now account for 75.1 million subscriber, with the cable sector still out-matching telcos with 41.5 million broadband subscribers to 33.5 million for telcos.

The Leichtman press release has more:

“At the end of 2010, the top broadband providers in the US cumulatively had over 75 million subscribers,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “Despite an increasingly high level of broadband penetration, the top broadband providers still added 83% as many subscribers in 2010 as in 2009.”

The good news for the market as a whole is that broadband growth has not slowed down as much as some of us might have feared. Market saturation was expected to have a more evident effect on slowing down new sign-ups, while it also would not have been a surprise if the linger economic crisis would have forced more customers to cut services.

While the overall news is good, telcos still are playing second fiddle. Will that ever change? Not if they stick with lower-speed technology.

One Response to “Broadband growth remains robust, cable remains in the lead”

  1. Stephen Fleece says:

    Broadband is great growth for CSPs but reliance on this type of growth further pushes the communications sector towards a utility. Service Providers need to enable applications and ecommerce. This service enablement must leverage unique network and business-saavy intermediary capabilities as new products for businesses large and small. These products on top of broadband are needed to differentiate and drive profitable growth. A significant culture change towards taking business risk and leveraging experimentation is needed.

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