Study: Cable Modems Have Early Lead Over DSL

Cable modem service has assumed a commanding early lead over DSL in the race to provide high-speed Internet access to
U.S. homes, according to a study by International Data Corp. However, IDC expects DSL to surpass cable access eventually.

The IDC study says that more than 1.3 million U.S. households will
connect to the Internet via cable modems by the end of 1999. It also says that more than 9 million households will subscribe to a cable modem service by 2003.

However, IDC expects DSL will overtake cable modems in 2003, becoming what it calls “the consumer broadband access service of

“Because of pent-up demand for high-speed Internet access services, the market for cable modem services will continue to exhibit strong growth through 2000,” said Amy Harris, research analyst for IDC’s Residential Broadband and Telecommunications Services program.

“However, after 2000, cable modem services will face impending competition from other high-speed technologies – particularly DSL. The success or failure of DSL network upgrades, marketing, and service delivery will have a significant impact
on the cable modem market, and vice versa,” she said.

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