Michael's Insight

New customers choose cable two-to-one over DSL

Cable Beating Back DSL [Broadband Reports]

Third-quarter results are showing that new broadband subscribers are choosing cable broadband at a 2-1 rate over DSL. The gap between cable broadband and DSL continues to grow because of the significant speed differences between the two. Cable broadband is faster than DSL, and promises even faster speeds as cable operators begin to roll out DOCSIS 3.0 technology.  Another BBR report declares that DSL has cemented its title as the next dial-up.

Unlike phone companies, cable companies do not view technology as the end-game of their services.  Instead, it's a means to an end.  Do customers really care if they receive their blazing Internet speeds via a network that delivers their service via fiber to the curb or fiber to the node?  No.  Unless there is a difference in the quality of service.  With DOCSIS 3.0, cable has put to rest the belief that a complete fiber optic rebuild is needed to compete effectively with Verizon's FIOS technology.  Instead, both Verizon and AT&T remain burdened with huge capital investment requirements in order to compete with cable's already-installed platform that easily adds DOCSIS 3.0 to it.

The remaining question is when does Wall Street figure it out and start reflecting these economic differences in the values of wireline phone and cable companies.

Attention all blog readers! You must see this!!

I think this may be a first in the Blogosphere.  It's a front row seat to a debate between two top level telecommunications policy leaders. It was so good and so timely, I couldn't wait until Monday.

In this corner (wearing the white hat) ;-) is Kyle McSlarrow, President and CEO of the National Cable and Telecommunications Association.  And in that corner (wearing the black hat) is Tom Tauke, Executive Vice President - Public Affairs, Policy and Communications for Verizon. 

I posted a link to the debate below but first, a brief explanation.