To: Patriarch who wrote (470 ) 12/1/1998 8:23:00 PM From: Patriarch Read Replies (1) | Respond to of 6531
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.