Cable Modems Forecast to Reach Half-Million Mark by Year-End
bloomberg.com
Phoenix, Dec. 1 (Bloomberg) -- The number of cable modems
installed in the U.S. and Canada will reach 513,000 by year-end
as Internet access over cable television systems grows, according
to Kinetic Strategies Inc., a cable Internet research firm.
Kinetic Strategies said the number of cable modems in homes
rose 362 percent from 111,000 at the end of 1997. It said the
modem service will be available by year-end to 21 million homes,
or about 20 percent of homes capable of receiving cable TV
service in North America.
Cable operators are looking at Internet access and other
high-speed data services as new revenue sources as they upgrade
their cable systems. The modems offer much faster access to the
Internet than conventional telephone-based modems.
Kinetic Strategies said At Home Network, a Redwood City,
California-based cable Internet service provider, attracted the
most customers with the modems. It is projected to finish 1998
with 305,000 subscribers. Second is Road Runner, a partnership of
Time Warner Inc., MediaOne Group Inc., Microsoft Corp. and Compaq
Corp., with 160,000 subscribers. At Home and Road Runner serve
more than 90 percent of all cable modem subscribers in North
America, Phoenix-based Kinetic Strategies said.
Cable operators expect to see explosive growth in revenue
from Internet access and high-speed data services in coming
years. Kinetic Strategies forecast industry revenue of $250
million from cable modem service next year.
The industry had hoped manufacturers such as such as Com21
Inc., 3Com Corp. and Terayon Corp. would begin offering modems
that operate on all cable systems for sale at stores by the end
of the year.
The expected introduction of these modems did not occur in
time for the Christmas season, though. |
