Cable modem popularity is not waning

Despite the low cost DSL options that local exchange carriers have been rolling out recently (see story link below), cable modem Internet access service is as popular as ever.

According to a new report from consulting firm In-Stat/MDR there are 27 million cable modem subscribers around the world, 14.6 million of whom are in North America.

Cable modem services are also popular in the Asia-Pacific region where there are 6.6 million subscribers and Europe with 3.7 million customers.

The consulting firm says that the number of worldwide cable modem subscribers is expected to grow to 34 million by year-end and to 68 million by 2007.

And cable network service providers are reaping the benefits. According to In-Stat cable companies worldwide in 2002 brought in $11 billion in revenues from cable modem services alone. That number is expected to jump to $15 billion by year-end.

But like DSL, the majority of cable modem service users are consumers. In fact, In-Stat says that 95% of all cable modem users are residential customers. The consulting firm says this will be a challenge for cable companies going forward. Service providers will need to figure out a way to reach more business users with their services or else see their cable modem service revenue hit with an almost guaranteed plateau.