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CABLE OR XDSL? FIRST ONE TO LURE CONSUMERS KEEPS THEM

A new report by Insight Research made a practical point to
telcos and cable operators: Consumers will pay but once for
a modem to establish a broadband connection, be it xDSL
(digital subscriber line) or cable. According to "Consumer
Demand for Broadband Services: xDSL, Cable Modems, and
Wireless," if xDSL is to dominate the consumer market, the
technology must become a built-in standard for PCs. For
broadband services over cable to gain prominence among
consumers, however, cable operators will have to roll out
systems upgrades for heavier traffic volumes. Either way,
Insight's study concluded that cable modems will lead the
consumer market by 2003. "DSL's main advantage is that it
can be marketed and sold by the local telcos to the consumer
market in the same way that they market other services such
as call waiting," said Robert Rosenberg, president of
Insight Research. "However, cable already covers 70% of all
households and cable operators appear to be rolling out
their high- speed service faster than the incumbent
telephone companies." Communications Today via NewsEdge,
Jan. 26, 1999
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