SOURCE: Pike & Fischer

January 08, 2007 16:53 ET

U.S. Broadband Penetration to Hit 60% in 2007, Led by DSL Growth

SILVER SPRING, MD -- (MARKET WIRE) -- January 8, 2007 -- About 60 percent of all U.S. homes will subscribe to broadband service by the end of the year, but cable operators will come precariously close to losing their majority market share, Pike & Fischer concludes in a new report published by its Broadband Advisory Services unit.

Cable operators will see their share of the high-speed Internet market fall to slightly more than 50 percent as adoption of standard DSL and, to an increasing extent, fiber to the home or node (FTTx), continues to help the major telephone companies net the largest number of new broadband customers, Pike & Fischer forecasts in its "Broadband Business Outlook 2007."

However, a growing array of on-demand and high-definition programming, together with aggressive promotional offers, will lead digital cable subscriptions to make up the majority of the industry's core video customer base. Digital cable subscriptions are priced higher than analog service, and thus generate more revenue.

"We also know that cable operators want to draw users away from the computer screen and back to the TV set, so they'll be developing ways to let customers access Web content through their set-top boxes," said Scott Sleek, Pike & Fischer's director of Broadband Advisory Services and an author of the report.

In the analysis, P&F also predicts that:

--  approximately 2 million U.S. households will subscribe to the new
    cable-like video services from the major Bell companies by yearend;
--  the cable industry will surpass Internet telephony pioneer Vonage's
    lead in the voice-over-IP market; and
--  new forms of broadband wireless technology will improve the quality of
    mobile video services and help drive up what so far have been slow adoption
Pike & Fischer, a BNA Company, offers a host of legal and business information products covering the telecommunications industry. "Broadband Business Outlook 2007" is priced at $599 and can be purchased at For analyst commentary or an executive summary, contact Scott Sleek at 301-562-1530, x 291 /

For more information about Pike & Fischer's Broadband Advisory Services, visit, or contact Jonathan Wentworth Ping at 212-576-8741 /

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