The Critical 'I'

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Tuesday, April 20, 2004

BROADBAND WARS: DSL CLOSING THE GAP
The latest Pew Internet & American Life findings on broadband penetration are out, and they're somewhat startling. Whereas last summer, cable broadband outnumbered DSL 2-to-1 and appeared set to stay that way, DSL services have caught up dramatically since then, to account for 42 percent of all broadband hookups.

How did the phone companies pull this off? There were some indications of small gains by DSL earlier this year, but no indication that the tide had turned this much. It seems the aggressive pricing discounts designed to lure dialup users worked, and worked fabulously well.

This explains why cable providers recently upped their download capacity from 1.5 to 3MB. I guess it's a real horserace now, for a change.