Verizon and AT&T can’t build out their next-generation, fibre-optic networks fast enough: While they spend a fortune upgrading their pipes to offer faster Internet access and digital TV service, little by little, the cable industry is sucking their DSL subscribers away.
As cable and telcos report Q2 results, one trend is clear: Cable companies are taking the majority of new broadband subscribers. So far, 69% of 476,000 total Q2 net broadband subscriber additions have gone to two cable companies — Comcast (CMCSA) and Cablevision (CVC). And just 31% have gone to five phone companies, including the two biggest — AT&T (T) and Verizon (VZ), whose results were both boosted by sign-ups to their new, faster, fibre-based services.
Why the shift? We think consumers are increasingly willing to pay a little more — cable Internet is about $6 more a month than DSL, according to Pew — for significantly faster download speeds, as bandwidth-intensive stuff like video streaming catches on. During its Q2 call, Comcast said that two-thirds of its new broadband subscribers were coming from DSL.
We’ve created a spreadsheet — embedded below — so you can watch the share shift happen live. We’ll update it daily as companies report Q2 results; check back for the latest.
Several companies still haven’t reported, such as Time Warner Cable (TWC), Charter (CHTR), and Qwest (Q). But Wall Street expects cable to continue its rout: Bernstein’s Craig Moffett thinks that once it’s all done, cable will have gotten 85%-90% of broadband net additions for the quarter.
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