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Residential Systems

Survey Says DSL May Beat Cable

May 31, 2000

Although cable modem service has a much larger market share of broadband services than DSL in the U.S. (67 percent vs. 29 percent at the end of 1999), its competitive edge may soon disappear, according to a recent survey conducted by Parks Associates.

The survey contains a sample of almost 600 broadband users (cable modem and DSL) and over 6,000 dial-up Internet households in four MSAs where both cable modem service and DSL are available.

The survey found that consumers are more aware of cable modem service than of DSL. However, respondents aware of both find DSL more desirable than cable modem services. Dial-up Internet users, who are the next broadband adopters, are more likely to subscribe to DSL than cable modem service when they upgrade their Internet service. Among these users who intend to upgrade their Internet service, 34 percent want DSL, compared with only 25 percent who would opt for cable modem service (see chart above).

Seventy percent of the broadband users surveyed say that they are satisfied with their service, while almost 10 percent say that they are not satisfied. Although there is no difference between cable modem users and DSL subscribers in terms of satisfaction, the former are more likely than the latter to churn under certain circumstances. For example, 41 percent of cable modem users say that they are likely to switch to an alternative service if they can get the same speed and save $10 per month, compared with 31 percent of DSL subscribers that have the same response

From the article "Survey Says DSL May Beat Cable."

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