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Report Says DSL Will Grow Faster Than Cable Modems

Alan Breznick

Is the broadband momentum shifting to DSL? A new report from Legg Mason says that it is. In its report, the investment research and brokerage firm predicts that the phone companies will add 4.36 million DSL subsctribers in 2005, up a whopping 50% from 2003 levels. At the same time, the firm forecasts that cable operators will add 4.18 million cable modem customers in 2005, down 1% from 2003's total. With the Bells gaining in the broadband race, Legg Mason says cable operators will likely respond by offering "sub-$100 triple play bundles" similar to the one launched by Cablevision Systems in June. The firm also predicts that cable operators will "broaden the use of lower tier offerings" in the new year, as Cox Communications, Charter Communications and Mediacom Communications have already begun to do. Overall, Legg Mason forecasts that the phone and cable industries will sign up 8.54 million broadband subscribers in 2005, up 20% from the 2003 combined total.

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