[Cable vs DSL]
www2.computerworld.com Study sees cable modems beating out DSL Nancy Weil (Online News Story, 10/24/97)
Cable modems will dominate the North American residential Internet access market by 2002, outpacing Digital Subscriber Line (xDSL) lines 4-to-1, according to a new market study. More than 7 million cable modems will be installed by then, according to Forward Concepts, Inc., a Tempe, Ariz.-based consulting and market research firm.
"Broadband in the Local Loop: Cable Modem Madness vs. xDSL Dementia" also predicts that cable will trounce xDSL globally, but by smaller margins than in North America.
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Cable modems will win out because unit prices will dip below $150. The study forecasts the average DSL modem pair dropping from about $2,400 to $200 in the same time frame, but suggests that questions still exist regarding whether DSL really works with existing telephone lines.
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Still, cable companies are, by default, winning the Internet access war among consumers "because the phone companies have really not been as aggressive as they could be" in offering high-speed broadband data services. Strauss said that it isn't too late for phone companies if they jump into the broadband market soon. However, he said they will be shut out "if they're not into volume shipments of xDSL by the end of next year." |