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The 19 largest cable and telephone providers in the US – comprising some 94% of the market – acquired over 2.9 million net additional high-speed internet subscribers in the first quarter of 2007, according to the Leichtman Research Group (LRG).

The top broadband providers now account for 56.2 million subscribers, with cable companies accounting for 30.7 million subscribers and telephone companies for 25.4 million.
 
Other LRG findings for the quarter:

  • The top telephone companies added 1.49 million subscribers, or 51% of the net broadband additions for the quarter versus cable.
  • The top cable providers had a record-tying quarter with about 1.45 million subscribers added – nearly the same as in the first quarter of 2006.
  • Telephone companies have added more broadband subscribers than cable providers in each of the last 10 quarters, acquiring about 1.86 million more subscribers than cable over that time; however, the difference between them in the first quarter was the smallest in the past 10 quarters.
  • The top cable broadband providers have a 55% share of the market, with a 5.3 million subscriber advantage over the telephone companies.

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Other related findings from the first quarter of 2007 include:

  • The top cable companies added a record 1.1 million telephone subscribers.
  • The top cable companies added over 1.2 million digital cable subscribers – the most net additions since the fourth quarter of 2002.
  • The top cable companies added about 200,000 basic cable subscribers.
  • The three largest telephone companies (RBOCs) added over 150,000 wireline video subscribers, and added 335,000 video subscribers in DBS (direct broadcast satellite) partnerships.

“Cable’s record success in the first quarter of 2007 is emblematic of the industry’s ability to evolve beyond its core television heritage,” said Bruce Leichtman, president and principal analyst of LRG.

“The top cable companies now have over 30 million broadband subscribers, and about 10 million telephone subscribers, to complement their enhanced TV offerings.”

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