Open source
Broadband:
High-speed access goes mainstream
Residential broadband took off in earnest in the United States in 2003, as local phone carriers finally got serious about offering their customers high-speed Internet service.
Verizon Communications, SBC Communications, Qwest Communications International and BellSouth all moved to beef up their DSL (digital subscriber line) offerings and make them more attractive to customers through expanded service, price cuts and aggressive marketing. Those moves helped drive DSL growth and put pressure on cable broadband providers to respond with their own special deals and service improvements.
Broadband services added new subscribers at a brisk clip, with DSL growing more than 30 percent between January and September to some 8.2 million customers, according to Leichtman Research Group. For the same period, cable broadband grew just less than 30 percent to 14.5 million subscribers.
The clearest losers in the race to broadband for now appear to be dial-up Internet service providers such as America Online and Microsoft's MSN. Both services, the two largest dial-up services in the United States, witnessed a staggering drop in their subscriber rolls in the past year, with AOL losing 2 million members over a 12-month period.
The biggest winners have been consumers, who now have a choice between several broadband service providers in some major markets. But there is still considerable uncertainty over the future of broadband in the country, which lags global trends in bandwidth price and speed.
Meanwhile, the Bells won some significant concessions on broadband deregulation, when the Federal Communications Commission in August issued a long-awaited overhaul of telecommunications rules. But the new rules pleased almost no one and have been challenged in court.
Meanwhile, cable companies face a potentially crippling legal ruling in a federal appeals court proceeding that challenges FCC policies aimed at keeping the industry free of regulations that have been imposed on the telephone industry.
Regulatory issues aside, delaying broadband deployment has become increasingly untenable for the Bells in the face of growing competition from cable companies.
Phone and cable companies have until now been defined by the services they offer. But the distinctions are dropping away with the advent of high-speed digital networks, which are capable of running data, video and voice applications over the same line.
As a result, cable and phone companies are increasingly stepping on each other's turf, with cable companies rolling out voice products and phone companies exploring delivering television programming over DSL lines.
--Jim Hu
AOL's broadband crusade
America Online gets ready to launch an upgraded version of its service geared toward broadband users, its latest plan to keep some 34 million dial-up account members within the fold.March 30, 2003
Comcast plans portal revamp
For the first time since selling off Excite@Home, Comcast is taking Web programming into its own hands, offering video, music and other content to broadband subscribers.June 6, 2003
Broadband homes want faster, reliable Net
Households upgrading to high-speed Net access are basing their decisions on practical necessities rather than a desire for splashy graphics and streaming videos, a new study shows.June 23, 2003
Endless summer of DSL discounts
Web surfers are seeing a wave of deals from high-speed DSL services as phone companies brace for a high-stakes battle with cable for communications into the home.July 7, 2003
Microsoft takes another shot at cable
The software giant signs up Comcast and Time Warner Cable to test out its set-top box technology in effort to revive its stalled cable TV push.July 22, 2003
Survey: Users want DSL but can't get it
Dial-up Internet users are more willing to upgrade to DSL than to cable modem service, according to a study. The problem is finding a DSL provider.Aug. 6, 2003
Can video relieve Baby Bell ills?
A string of deals between Baby Bells and satellite TV companies signals that local phone companies are scrambling to add video services in a bid to fend off cable rivals.Sept. 2, 2003
Broadband adoption skyrockets worldwide
The number of broadband subscribers worldwide surged 72 percent in 2002, to 62 million, as more households upgraded their dial-up modems for speedier access, a new study finds.Sept. 16, 2003
Microsoft drops BellSouth DSL deal
The software giant is ending a two-year-old broadband access deal with BellSouth, as it continues to reposition its MSN service for the high-speed Internet.Sept. 24, 2003
Cable firms bet on broadband speed, not price
Cable companies think raw speed will help them conquer the broadband market, but slower, cheaper services from rival digital subscriber line providers are coming on strong.Oct. 10, 2003
The brewing war over broadband
A legal decision striking down a key definition of cable broadband as an information service could signal tougher regulation for the high-speed Internet access industry.Oct. 13, 2003
Study: Price matters for broadband
Many dial-up households say they won't upgrade to broadband because it's too expensive. Will cable modem services resort to dropping prices to compete with phone companies?Oct. 13, 2003
Broadband numbers show heightened demand
After a quarter marked by DSL price cuts and cable speed boosts, recently released subscriber numbers make it clear: Broadband use is surging, regardless of what form it takes.Oct. 30, 2003
Cable joins broadband price war
Aggressive promotions target phone company rivals as the industry mulls "tiered" services.Nov. 12, 2003
Broadband numbers reach all-time high
Cable and DSL providers report their most fruitful quarter ever, adding more than 2 million subscribers to their high-speed Internet services.Nov. 12, 2003
