June 16, 2006 9:43 AM PDT
DSL strikes a chord with frugal shoppers
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Comcast, the largest cable operator in the U.S., added 436,000 new subscribers in the first quarter of 2006, the largest number of new subscribers the company has ever signed up in a first quarter. And Time Warner, the second-biggest cable company in the nation, had its best quarter ever for broadband subscriptions, winning 343,000 new subscribers in the first quarter.
"Our competitors attempted to start a price war last year," said Keith Cocozza, a spokesman for Time Warner Cable. "While some broadband providers lowered prices, we didn't, outside our standard promotional pricing. And over the last few quarters, we've seen some of the strongest growth in new subscribers."
Mining dial-up users
Growth in broadband for cable and DSL isn't expected to slow anytime soon, as dial-up users and people who have never subscribed to a broadband service come online. Nearly 30 percent of all Americans don't have any Internet access, according to the Leichtman Research Group. And of the 69 percent or so who do have access to the Internet, about 40 percent are still using dial-up. Cable and phone providers see these untapped markets as ripe for new business.
"Everyone wants to make it a horse race between cable and DSL," said Leichtman. "The truth is, there is plenty of opportunity for both sides to win."
But he added that he sees a growing division between consumers subscribing to cable and those choosing DSL. Cable is perceived as the leader in speed and performance, whereas DSL is seen as the economical choice, he said.
Not surprisingly, neither the cable operators nor the phone companies like being pigeonholed into these categories. John Wimsatt, senior vice president of broadband solutions for Verizon, downplayed the impact of price on the company's strong subscriber growth. Instead, he said consumers are drawn to the carrier because they are looking for more choices, which he said cable doesn't offer.
"We've learned that one size doesn't fit all," he said. "Even with our 768Kbps product for $14.95, we still see strong demand for our 3Mbps service and even our Fios fiber-to-the-home service, where it's available."
Cable operators, who tout their faster speeds any chance they get, also say they haven't given up on price-sensitive consumers. They plan to address the cost issue by pushing packages of service, which include high-speed Internet access, TV and phone service. For example, Comcast offers a triple-play package for $99 for the first year.
"This is a bundle that is about value," said Jeanne Russo, a spokeswoman for Comcast. "And we think it appeals very much to middle-income households. You can see from our sales numbers that consumers are responding. We are seeing are greatest penetration in places where we offer the triple-play package."
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152 comments
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Note: this does not include hurricanes where EVERYTHING is down. Who cares about Internet when there is no power. :)
I don't really care about the DSL prices, I can't stand local phone companies, doesn't matter who they are. Sprint/Embarq is local here, but whether them, SBC/AT&T, Verizon, they all screw people over on their phone prices. Plus, I regularly download large files, iso images of linux distros & such. DSL speeds top at 3Mbps, compared to standard cable at 5Mbps.
On top of that, DSL services demand a 1-2 year contract, no thanks, they can shove their contracts. I'll stick to Earthlink cable via Time Warner with the basic $14.95 Vonage plan in case I need something other than my cell phone.
For my needs, DSL can't compare.
But either way, most Americans are getting ripped off when it comes to broadband serverices when family households in Japan are getting 10 to 100Mbit FIOS service for $25 to $50 per month.
Note: this does not include hurricanes where EVERYTHING is down. Who cares about Internet when there is no power. :)
I don't really care about the DSL prices, I can't stand local phone companies, doesn't matter who they are. Sprint/Embarq is local here, but whether them, SBC/AT&T, Verizon, they all screw people over on their phone prices. Plus, I regularly download large files, iso images of linux distros & such. DSL speeds top at 3Mbps, compared to standard cable at 5Mbps.
On top of that, DSL services demand a 1-2 year contract, no thanks, they can shove their contracts. I'll stick to Earthlink cable via Time Warner with the basic $14.95 Vonage plan in case I need something other than my cell phone.
For my needs, DSL can't compare.
But either way, most Americans are getting ripped off when it comes to broadband serverices when family households in Japan are getting 10 to 100Mbit FIOS service for $25 to $50 per month.
As for BoP, there is an issue with Ham Radio that needs to be addressed. The issue has presented that there needs to be more research done into what frequencies are being affected. Ham Radio still has a large place in disaster situations.
There are numerous reports of Ham Radio "buzzing" in the test locations for BoP, this brings up worries that it may interfer with emergency response communication systems.
Hopefully they can get both of these worked out quickly so we can have real competition.
<a class="jive-link-external" href="http://www.current.net/WatchTheVideo/" target="_newWindow">http://www.current.net/WatchTheVideo/</a>
Read more about Global Broadband over PowerLines updates especially about ham-friendly BPL technology !!!
<a class="jive-link-external" href="http://broadbandoverpowerlines.blogspot.com/" target="_newWindow">http://broadbandoverpowerlines.blogspot.com/</a>
in many cases it's not very "broad".
Powerline broadband still sounds like pie in the sky
due to all the technical problems.
As for BoP, there is an issue with Ham Radio that needs to be addressed. The issue has presented that there needs to be more research done into what frequencies are being affected. Ham Radio still has a large place in disaster situations.
There are numerous reports of Ham Radio "buzzing" in the test locations for BoP, this brings up worries that it may interfer with emergency response communication systems.
Hopefully they can get both of these worked out quickly so we can have real competition.
<a class="jive-link-external" href="http://www.current.net/WatchTheVideo/" target="_newWindow">http://www.current.net/WatchTheVideo/</a>
Read more about Global Broadband over PowerLines updates especially about ham-friendly BPL technology !!!
<a class="jive-link-external" href="http://broadbandoverpowerlines.blogspot.com/" target="_newWindow">http://broadbandoverpowerlines.blogspot.com/</a>
in many cases it's not very "broad".
Powerline broadband still sounds like pie in the sky
due to all the technical problems.
Cable can keep their fast connections. I refuse to fill their pockets with my hard earned cash just so they can "open the spiggot" a little more for us thirsty people. The way I look at it, they should be paying me to connect. Let them collect from the companies that are benefitting financially from internet sales (etc).
Cable can keep their fast connections. I refuse to fill their pockets with my hard earned cash just so they can "open the spiggot" a little more for us thirsty people. The way I look at it, they should be paying me to connect. Let them collect from the companies that are benefitting financially from internet sales (etc).
Supposedly the cable was faster, but in day-to-day use I can't really tell much difference.
Supposedly the cable was faster, but in day-to-day use I can't really tell much difference.
www.wowway.com
I am sick of Comcast's high prices and network
outages. Their DNS servers seem to go out also
on a regular basis. They seem to be pricing
themselves out of the market.
www.wowway.com
I am sick of Comcast's high prices and network
outages. Their DNS servers seem to go out also
on a regular basis. They seem to be pricing
themselves out of the market.
It used to be that DSL speeds were far slower than cable but that is changing. At the moment, DSL speeds (for the majority of possible DSL connections offered) are about equal. Some cable markets are rolling out 20+Mb/s service and some are even higher. But the same problem will always come back and that is the shared medium. All that bandwidth means nothing when the cable comany oversells the area or little Johnny next door decides to upload 10GB of videos of him playing his XBox.
If you really want reliable broadband service that is not affected by your next door neighbor's surfing habits, go with DSL.
I still favor DSL but must be naked (no dialtone)for me to make the move back from cable.
FYI I worked for an independt ISP that provided DSL in the late 90's - early 00's and used your argument to get people to switch :)
-Metro305
DSL speeds however are always varried depending on where you live. Sure, they only offer you what they can give on approxamation, but if you can only get 1 MBps vs 4 MBps(the standard package for 39.99), which would you take? Besides, with the cable company offering phone, HSI, and tv service, its much easier to take a bundle than get the services from 2 different companies. Why else do you think DSL has dropped its price so much in the past few years. They had to find some way to compete with the cable companies.
It used to be that DSL speeds were far slower than cable but that is changing. At the moment, DSL speeds (for the majority of possible DSL connections offered) are about equal. Some cable markets are rolling out 20+Mb/s service and some are even higher. But the same problem will always come back and that is the shared medium. All that bandwidth means nothing when the cable comany oversells the area or little Johnny next door decides to upload 10GB of videos of him playing his XBox.
If you really want reliable broadband service that is not affected by your next door neighbor's surfing habits, go with DSL.
I still favor DSL but must be naked (no dialtone)for me to make the move back from cable.
FYI I worked for an independt ISP that provided DSL in the late 90's - early 00's and used your argument to get people to switch :)
-Metro305
DSL speeds however are always varried depending on where you live. Sure, they only offer you what they can give on approxamation, but if you can only get 1 MBps vs 4 MBps(the standard package for 39.99), which would you take? Besides, with the cable company offering phone, HSI, and tv service, its much easier to take a bundle than get the services from 2 different companies. Why else do you think DSL has dropped its price so much in the past few years. They had to find some way to compete with the cable companies.
Question, is their any demand for dedicated scaled bandwidth from 10 to 300 mbs, based on an individuals need, simultaneous in both directions?
All comments welcome!
Question, is their any demand for dedicated scaled bandwidth from 10 to 300 mbs, based on an individuals need, simultaneous in both directions?
All comments welcome!
I'm in the Norhteast and DSL in the next town over (literally a couple hundred feet away) but not for me?!
I'm in the Norhteast and DSL in the next town over (literally a couple hundred feet away) but not for me?!
I killed my phone line and got Vonage and between the two -- cable modem and vonage I have much less cost, much better service.
I killed my phone line and got Vonage and between the two -- cable modem and vonage I have much less cost, much better service.
to the USA, but check out websites like The Register and
you can read stories about the rollout of offers like
£21 (about $40) a month for a combination of phone and
8 Mb/s broadband. Now compare this with the latest offer from
Comcast which came in the mail a few days ago, $33 per month
each ($66 total) for phone and for "up to 6Mbps" broadband.
And those rates only last 6 months, after which they go way up.
to the USA, but check out websites like The Register and
you can read stories about the rollout of offers like
£21 (about $40) a month for a combination of phone and
8 Mb/s broadband. Now compare this with the latest offer from
Comcast which came in the mail a few days ago, $33 per month
each ($66 total) for phone and for "up to 6Mbps" broadband.
And those rates only last 6 months, after which they go way up.
In any case as others have point out, its all moot. I've yet to met a consumer that could tell 1.5Mbs from 3 or 6Mbps when doing basic surfing, email and messaging use. Any perceived slowness is usually due to DNS delays and latency which can hit any network connection.
My experiences of people trying to get cable support is that basically its non-existant - don't even think of trying anything remotely business critical with it (like working from home or using VoIP even) because when it goes down you could be weeks without resolution. And, the average big telco DSL comes a close second. My best experiences have been with small local ISPs that resell DSL connectivity (I'll give a big plug to Sonic.net in California for their amazing job at doing this and pleasing customers) and specialize in supporting it like its a real network connection and not just some add-on package from a big media company like comcast or big telco like SBC/ATT.
Two things to remember when getting DSL or cable - buyer beware and you mostly get what you pay for.
If network connectivity is critical to you make sure you have backup solutions like good old fashioned dial up (don't laugh, you'll be surprised how good 56K dial up can be) or WWAN from your cellular phone (GPRS/Edge or HSPDA). With all three configured and working you should be good to go next time the cable goes out and there's a week or so wait to get the cable guy out...
Most consumers should opt for the cheapest 384K solution they can find because anything higher is a waste of money for simple surfing and email. Which broadband use studies show is what about 75% or broadband users do with their connections.
I must disagree with your assumption that local ISPs reselling DSL is a better option. Local ISPs suffer from lack of trained personnel to deal with anything technical above simple web surfing issues and the dreaded "I can't get my email!" complaint. Not to mention, most local ISPs don't have the upstream bandwidth to support several highspeed customers at once unless they opt for a DS-3 at around $2,000 a month. Most simply opt to tie multiple T-1s together and multiplexing has its own issues. And finally, paying a local provider to simply route my connection through their system and adding latency (make no mistake, rerouting DSL connections through third parties adds about 50ms of latency) is not an attractive option.
I used to be in the local ISP game from 1995 through 1999. I could see the writing on the wall and got out. The days of the local ISP are numbered. City-wide wireless is going to take over the consumer market and local ISPs will be relegated to the sidelines with the dialup holdouts.