Commentary

First Quarter Sees Almost Three Million New High-Speed Internet Subscribers

First Quarter Sees Almost Three Million New High-Speed Internet Subscribers

According to Leichtman Research Group, Inc., the nineteen largest cable and telephone providers in the US, representing about 94% of the market, acquired over 2.9 million net additional high-speed Internet subscribers in the first quarter of 2007. The top broadband providers now account for 56.2 million subscribers, with cable companies having over 30.7 million broadband subscribers, and telephone companies having over 25.4 million subscribers.

Additional broadband findings for the quarter include:

  • The top telephone companies added 1.49 million subscribers, 51% of the net broadband additions for the quarter
  • The top cable providers had a record tying quarter with about 1.45 million subscribers added
  • Telephone companies have added more broadband subscribers than cable providers in each of the last ten quarters, acquiring about 1.86 million more subscribers than cable over that time
  • The top cable broadband providers have a 55% share of the market, with a 5.3 million subscriber advantage over the telephone companies

Broadband Internet Snapshot(first quarter, 2007) 

Broadband Internet

Subscribers at end of 1Q 2007

Net Adds in 1Q 2007

Cable Companies

Comcast

12,050,000

563,000

Time Warner

7,000,000

356,000

Cox

3,495,000

160,000

Charter

2,525,900

123,900

Cablevision

2,118,000

79,000

Insight

656,000

44,800

Mediacom

600,000

22,000

Cable One

308,089

19,079

RCN

280,000

5,000

Other major private cable companies

1,720,000

75,000

Total Top Cable

30,752,989

1,447,779

Telephone Companies

AT&T

12,855,000

690,000

Verizon

7,398,000

416,000

Qwest

2,305,000

167,000

Embarq

1,104,000

87,000

Windstream

710,000

53,868

Citizens

464,055

20,300

CenturyTel

413,000

44,000

Cincinnati Bell

208,000

9,700

Total Top Telephone Companies

25,457,055

1,487,868

Total Broadband

56,210,044

2,935,647

Sources:  The Companies and Leichtman Research Group, Inc., May 2007

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 added over 150,000 wireline video subscribers, and added 335,000 video subscribers in DBS partnerships

 Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  "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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