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Amazingly, People Do Prefer Cheap DSL To Expensive Cable

from the funny-how-that-works dept

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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  1. identicon
    Racer X, 17 May 2005 @ 7:18am

    DSL cheaper than cable?

    Not in my area...a few years ago, DSL providers would run a non-dial tone phone line to provide you DSL. Now, through the insistence of Verizon, all DSL providers in my area (Wash DC) require a landline for voice. When you lump this unnecessary (dial tones are not required for DSL despite what you are told) cost in...DSL costs the same as, or more likely, much more than cable and a VoIP solution like Vonage.
    Fiber (FIOS) may change everything for sure, but for now, I will not subscribe to the DSL mindset and overpay my voice line to subsidize the 'cheap' DSL prices.
    Besides, my 4.5 Megabit cable throughput still kicks the crap out of any DSL offering anyway.

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