Nearly two years ago, with cable modem service holding a commanding lead in the US (though, almost nowhere else), US telcos decided that the way to claw back into the market was to position themselves as the low cost supplier (though, it was often done in a way that was tricky and wasn't as cheap as it looked). That strategy seemed to work almost immediately. Cable providers, in the meantime, tried to convince the world that their higher speeds were much more important. Earlier this year, however, when it became clear that advancements in DSL (and the coming onslaught of fiber) meant that the telcos would probably catch up to cable in speed, the cable companies suddenly changed their tune, saying that speed was no longer important -- now, it's all about additional "services" that most people don't care about anyway. Either way, it appears cable's strategy isn't doing so well, as DSL has successfully chipped away at cable's market dominance, cutting its market share from 65% down to 59%. Still, as Broadband Reports notes, it doesn't appear that cable is that scared just yet. We'll know that cable has finally woken up when they actually lower prices.
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