To: Frank A. Coluccio who wrote (1631 ) 1/29/2000 5:42:00 PM From: pat mudge Respond to of 2347
dailynews.yahoo.com Friday January 28 2:29 PM ET High Speed Internet Access to Grow Sharply By Mark Weinraub NEW YORK (Reuters) - The number of U.S. residential subscribers to high-speed Internet access services should grow to 3.3 million by the end of this year and 16.6 million by 2004, up from 1.4 million at the end of 1999, a technology research firm said on Friday. The Yankee Group said in a report consolidation in the cable industry, which provides high-speed access through cable modems, and increased competition from telephone companies, which use digital subscriber line (DSL) technology, should fuel subscriber growth. At the end of 1999, nearly 80 percent of high-speed subscribers received service through cable modems, the Yankee Group said. By the end of 2004, cable's market share should shrink to 42 percent as DSL services become more widely available. The report said about 41 percent of all U.S. households will have access to cable modem service by the end of this year while DSL access will be more limited, with only 24 percent eligible for service by year's end. ``Prior to consolidation, the high cost of upgrading to two-way, cable-modem- capable infrastructure meant that smaller operators would be hard-pressed to make the transition quickly,' said Bruce Leichtman, director of the Yankee Group's Media & Entertainment Strategies practice. ``Today, however, many of these operators are now owned by deeper-pocketed buyers like Paul Allen's Charter Communications (NasdaqNM:CHTR - news), Adelphia (NasdaqNM:ADLA - news), Cox (NYSE:COX - news), and Comcast (NasdaqNM:CMCSA - news).' Additionally, companies such as AT&T Corp. (NYSE:T - news), set to become the No. 1 U.S. cable television operator though its planned purchase of MediaOne Group (NYSE:UMG - news), have increased their cable assets recently. Top Internet services provider America Online (NYSE:AOL - news) gained access to high-speed systems with its acquisition of Time Warner Inc. (NYSE:TWX - news), including its Road Runner cable modem business. DSL technology takes advantage of unused capacity in existing phone lines, allowing customers to send faxes or make phone calls while surfing the Internet at high speeds. Currently, DSL is only available to consumers who live within a certain distance of central telephone facilities and have telephone equipment that meet certain requirements. The Yankee Group is a unit of information services company Primark Corp. (NYSE:PMK - news)