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Systems Contractor News

From the column "News Briefs."

March 31, 2000

Dallas, TX—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. Part of the company's Broadband Access @ Home study, the report shows DSL making strong gains in key consumer areas.

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 - New York, Atlanta, San Jose and Phoenix - where both cable modem service and DSL are available. Each RBOC is represented by one of the four MSAs.

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.

In another survey related to the report, Park Associates found that broadband users ranked high speed as the most important benefit to their adoption of broadband services, although having an instant Internet connection was not far behind on the list. On a scale of one to five, with five meaning "extremely important," high speed scored a 4.8, and instant connection scored a 4.3, while constant Internet connection, broadband content and freeing up the phoneline ranked between 3.6 and 3.7.

For more information about the study, please contact Steve Harvey at 972.490.1113 or sales@parksassociates.com.

From the column "News Briefs."

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