Ready, Fire, Aim! - Mihail's Public Blog: Broadband price drops, China numbers surge

Thursday, June 2, 2005

Broadband price drops, China numbers surge

According to this WSJ story (subscription required), there are 34.5 million broadband subscribers in the US (the largest number of any country), a number expected to double in four years...especially thanks to SBC's new low price of only $14.95/month for new subscribers.

The telecom companies have steadily lowered prices on broadband service in the past two years, sometimes through special promotions, in hopes of catching up to cable providers, which were the first to offer broadband and maintain a substantial edge over DSL providers. Currently, there are more than 21.1 million cable-broadband subscribers, compared with about roughly 15 million DSL subscribers, though estimates vary.

The phone companies' tactic seems to be working. In the first quarter of this year, of the 2.6 million new broadband subscribers, 192,655 more turned to DSL over cable, according to Leichtman Research Group Inc., a media-markets research firm based in Durham, N.C.

According to this CNET News.com story:

At the end of 2005, China is expected to have 34 million subscribers, compared with 39 million in the United States, according to new data from market research firm iSuppli. By the end of 2007, China will have 57 million broadband subscribers, compared with 54 million U.S. subscribers. In ensuing years, China is expected to widen its lead over the United States.

Today there are more than 150 million broadband subscribers worldwide, according to IMS Research. More than 51 million have signed up for service since the beginning of 2004. This tremendous growth rate shows no signs of slowing, and it is forecast that the number of broadband subscribers will surpass 400 million in 2009.

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