Credit Suisse First Boston said third-quarter DSL results from regional Bell operating companies were better than expected and that DSL will continue to take more than half of broadband net adds due to lower price points.
The research firm said broadband market share is now 58% for cable and 42% for DSL, versus 61% cable and 39% DSL a year ago. "We believe that by 2010 wireline broadband penetration will reach 67% and market share will be split 52% cable and 48% DSL," the research firm said.
For the third quarter, CSFB said DSL net adds rose 30% from the same period last year. "We believe that the share shift from cable to DSL in the third quarter was greater than we had estimated," CSFB analyst Carrie Hart wrote in a recent report.
The research firm estimates cable broadband net adds declined by 264,000 year-over-year as a result of a tough comparison with an unusually strong 2004 and high broadband market penetration.
"We believe that acceleration in DSL net adds is being driven by faster migration of dial-up subscribers to broadband as a result of more aggressive pricing from the regional bells," CSFB said, citing $15 price points from Verizon Communications (nyse: VZ - news - people ) and SBC Communications (nyse: SBC - news - people ).
CSFB reiterated "outperform" ratings on Comcast (nasdaq: CMCSA - news - people ), Sprint Nextel (nyse: S - news - people ) and Time Warner (nyse: TWX - news - people ). It maintained "neutral" ratings on BellSouth (nyse: BLS - news - people ), Cablevision (nyse: CVC - news - people ) Systems, Mediacom Communications (nasdaq: MCCC - news - people ) and Verizon.
http://www.forbes.com/markets/2005/10/28/dsl-rbocs-internet-1028markets02.html?partner=rss
The research firm said broadband market share is now 58% for cable and 42% for DSL, versus 61% cable and 39% DSL a year ago. "We believe that by 2010 wireline broadband penetration will reach 67% and market share will be split 52% cable and 48% DSL," the research firm said.
For the third quarter, CSFB said DSL net adds rose 30% from the same period last year. "We believe that the share shift from cable to DSL in the third quarter was greater than we had estimated," CSFB analyst Carrie Hart wrote in a recent report.
The research firm estimates cable broadband net adds declined by 264,000 year-over-year as a result of a tough comparison with an unusually strong 2004 and high broadband market penetration.
"We believe that acceleration in DSL net adds is being driven by faster migration of dial-up subscribers to broadband as a result of more aggressive pricing from the regional bells," CSFB said, citing $15 price points from Verizon Communications (nyse: VZ - news - people ) and SBC Communications (nyse: SBC - news - people ).
CSFB reiterated "outperform" ratings on Comcast (nasdaq: CMCSA - news - people ), Sprint Nextel (nyse: S - news - people ) and Time Warner (nyse: TWX - news - people ). It maintained "neutral" ratings on BellSouth (nyse: BLS - news - people ), Cablevision (nyse: CVC - news - people ) Systems, Mediacom Communications (nasdaq: MCCC - news - people ) and Verizon.
http://www.forbes.com/markets/2005/10/28/dsl-rbocs-internet-1028markets02.html?partner=rss
