Friday, November 5, 2010

DSL = (D)ead, (S)low and (L)ousy?

That’s what a post over at Stop the Cap! called Digital Subscriber Line (DSL) after reviewing a report from Credit Suisse analyst Stefan Anninger. Here’s some highlights from that report:

  • DSL will increasingly be seen as the “dial-up” service of the 2010s, as demand for more broadband speed moves beyond what most phone companies are willing or able to provide.
  • DSL accounts sold in the United States top out at an average speed of just 4Mbps, while consumers are increasingly seeking out service at speeds of at least 7Mbps.
  • A growing number of Americans understand cable and fiber-based broadband deliver the highest speeds, and consumers are increasingly dropping DSL for cable and fiber competitors. Any investments now may be a case of “too little, too late,” especially if they only incrementally improve DSL speeds.
  • By 2015, cable companies will have secured 56 percent of the broadband market in the U.S. (up by 2 percent from today), phone companies will drop from 30 percent to just 15 percent, Verizon FiOS, AT&T U-verse, and wireless broadband will each control around 7 percent of the market, with the remainder split among municipal fiber, satellite, and other technologies.
  • An online survey of 1,000 consumers in August found that less than half would consider going wireless only. The reasons? It’s too slow, too expensive and most plans have Internet Overcharging schemes like usage caps and speed throttles.
Regarding the FCC’s recent push for broadband reform by reclassifying broadband under Title II - Anninger suggests that Net Neutrality enforcement at the FCC is not a priority. Anninger goes on to say if action hasn’t been taken by winter or spring of next year, it’s a safe bet the Commission will never re-assert its authority.

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