Cable Modem Market On Rise - Report
NewsBytes - February 17, 1999: 5:31 p.m. ET
CAMBRIDGE, MASSACHUSETTS, U.S.A. (NB) -- By Newsbytes Staff,
Networking Roundup. Increased demand for greater bandwidth to
accommodate multimedia data transfers, is fueling residential
interest in cable modems, according to a new report by Pioneer
Consulting.
The report, entitled "Global Broadband Access Markets: xDSL, Cable
Modems and the Threat from Broadband Satellite, Wireless and
All-Optical Solutions" and covering between 1998-2007, says the
residential global cable modem market will increase from 1998
year-end totals of 560,000 subscribers to over 1.5 million in 1999.
After that point, says the report, the market will enter a "period
of rapid expansion in consumer usage," and, by 2007, will have
reached a total of 45.43 million users, which will translate into
a basic services market of $16.4 billion.
That said, however, the business market for cable modem services
will continue to be "quite limited" says Pioneer. A "poor or
non-existent relationship" with cable operators and a "perception of
substandard service quality," account for the disparity.
The company adds that cable modem service to business "will fare
best for residential remote access applications and home office
applications."
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