Whether it is just curiosity (we had DSL at the last place, let’s try cable broadband) or America is bandwidth hungry, cable ISPs are gobbling up customers much faster than DSL, according to Q2 records announced by Pew. In fact, Comcast says 2/3rds of its new customers are coming from DSL.
So what is it? Bigger bundling discounts from cable operators? Are the DSL defectors finding faster speeds and more than happy to pay extra to get it? Alley Insider suggests it is all about speed. But is the layperson that hip to know how fast downloads should be?
From Barrons, Craig Moffett says cable is going to have won big in Q2:
In a research note, Bernstein Research analyst Craig Moffett notes that when the book is closed on Q2, cable is likely to have 85%-90% of the net broadband additions in the quarter. “Cable’s huge physical plant advantage - higher capacity and lower cost - is winning the day,” he writes. “In the wake of extremely weak telco results, one question looked above all others: is the broadband market dying, or is cable simply taking share?” he writes. “Now we know.”
My personal experience has shown years ago, new broadband users pick DSL then convert to cable after becoming more educated on the subject (or fast cable becomes available to their neck of the woods). Today, we are barraged with ads saying how much better cable broadband is; so the market is just accepting that.
What is your experience?
Read [Alley Insider] and [Barrons]
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