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CABLE

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Market research firm Data-quest reports that there will be more than 28 million residential U.S. subscribers to high-speed Net access by 2004, and some 14 million of them will use wire-line cable modems. The number of residential U.S. cable modem subscribers for the year 2000 was just over 3.3 million.

WASHINGTON, D.C., Aug. 14, 2001 (Newsbytes via COMTEX) -- U.S. cable TV companies connected 920,000 new subscribers for high-speed Internet services in the second quarter of this year, according to the industry's trade associations.

A June report from IDC said that, while cable-modem use may increase dramatically worldwide through 2005, its share of all broadband services will drop as competing technologies, such as digital subscriber line (DSL) from telephone companies, increase in popularity.

IDC said that there were 7.2 million cable modem customers worldwide last year, with more than half of them in the U.S. The Framingham, Mass., research company said that number will likely swell to 57.5 million by 2005.

CABLE
$40-$50 a month
$200-$300 installation cost
Pros: Always on; no distance limitations; higher availability; increasing availability of retail modems and equipment

Cons: Shared bandwidth (more subscribers in your neighborhood means lower bandwidth); security issues

Estimated subscribers in 2000:
3.4 million
Projected subscribers in 2004:

13.7 million
CHART
    CABLE MODEM
  • Inexpensive, uninterrupted Internet access
  • Just turn on your computer and go
  • Uses fiber-optic cable instead of phone lines
  • No block on incoming phone calls
  • Surf the web... talk on the phone... all at once
  • Download data up to 100 times faster than traditional dial-up modems
  • Up to 1 MB upstream and downstream data up to 10 MB
 
Cable Modem Usage and Revenue: 1998-2004
  1998 1999 2000 2001 2002 2003 2004
Units installed
(millions)
1.2 2.5 4.9 8.9 14.1 20.2 24.3
Industry revenue
(billions)
$0.5 $1.1 $1.9 $3.2 $4.4 $6.4 $6.8
Average monthly
subscriber fee
$40 $40 $35 $32 $29 $28 $24
Cable modem prices $245 $215 $165 $125 $85 $60 $50
 
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