IDC Predicts Cable Modem Boom

FRAMINGHAM, Mass. -- In an ongoing quest to save time, increase productivity, and satisfy the growing demand for instant gratification, the worldwide cable modem services market is well positioned to help users meet their personal and professional online needs. According to new research from IDC, worldwide cable modem service subscriptions will climb from 32.8 million in 2003 to 69.4 million in 2008.

"The push is on and operators are aggressively marketing broadband services to both residential and business customers," said Amy Harris, manager of IDC's Broadband Markets and Technologies service. "Faster speed broadband is quickly moving from luxury to necessity status, and users are steadily migrating from their dial-up connections."

Although cable modems offer a fat, free-flowing pipe to the client, it's not the only game in town. Despite the growing number of worldwide cable modem subscribers, DSL is the broadband connection of choice everywhere in the world except the U.S., where cable is king. At the end of 2003, the number of cable modem subscriptions in the U.S. was 1.5 times the number of DSL subscriptions, but DSL continues to close the gap as service providers more aggressively market, price, and promote DSL services and value-added applications to consumers and small businesses. The key to success for the cable operators is the continued bundling of video and voice services with cable modem Internet access products. For many end users, this will increase the attractiveness of cable modems.

IDC