Merrill Lynch ranks broadband service leaders

While cable modem services continue to attract more users than DSL does, both services are drawing millions of new users each year. Not surprisingly, service providers with large geographic footprints are leading this charge in offering business and residential users an alternative to dial-up Internet access.

According to a recent research study by Merrill Lynch, Comcast is the market leader. By year-end, the financial firm expects Comcast will have 5.2 million subscribers. Since the cable network service provider acquired AT&T Broadband it has been a clear broadband leader.

AOL Time Warner has a respectable second-place standing with an expected 3.6 million subscribers by year-end, according to Merrill Lynch. Cox Communications is expected to have 1.9 million cable modem subscribers this year, followed by Charter, which is expected to have 1.6 million high-speed users.

On the DSL front, SBC Communications is the clear leader, with 3.4 million subscribers expected by year-end. Merrill Lynch says Verizon will hold its No. 2 position with 2.4 million broadband users this year. And BellSouth is expected to have 1.5 million DSL customers by year-end. Qwest Communications is expected to be a distant fourth with just over a half a million DSL users.

Next time: More information from Merrill Lynch’s study.