We've seen plenty of evidence that the economy is dragging on broadband providers in recent weeks. Both Verizon and AT&T reported alarmingly low subscriber growth, which suggested the so-called "broadband boom" has gone bust -- it's difficult to convince people who can't afford gas or groceries to pony up cash for internet service in the current economic environment.
But if the broadband bust is real, it may not be universal. Time Warner Cable announced "impressive" second-quarter broadband growth. The company added 201,000 high-speed data subscribers, up from 188,000 in the year-ago period. (It also added 251,000 voice service subscribers and 200,000 digital subscribers during the quarter.)
"With all the major cable and [regional bell operating companies] having reported, we believe cable handily won the broadband battle for the quarter," said Thomas Eagan, an analyst with Collins Stewart. "Cable [Multiple System Operators] captured nearly 80 percent of the broadband net adds in the second quarter versus our 45 percent estimate, as DSL customers continued to migrate to cable."
Eagan's comments echo those made by Media Metrics analyst Laura Martin, who argued last week that DSL will eventually become obsolete thanks to increasing popularity of cable broadband services.
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