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Study Projects Broadband Sign-Ups to Fall by 12 Percent in 2009, Economic Downturn Blamed

The result of the economic downturn will force cable industry and telephone companies to face some unsettling prospects in terms of customer growth and revenue increases, according to a forecast by research firm, Pike & Fischer. According to the report released today, Pike & Fischer anticipates approximately 5.7 million U.S. households to become new high-speed Internet customers this year, marking a 12% decline in subscriber growth compared to 2008.

The report also suggests that the cable industry will capture about 75% of new broadband subscribers. “While top telephone companies such as Verizon and AT&T are providing new fiber-optic Internet services that can exceed the speeds offered by cable, most of their service areas are covered only by DSL (digital subscriber line) service, which consumers are increasingly spurning because its speeds are slower than cable.”

By CircleID Reporter

CircleID’s internal staff reporting on news tips and developing stories. Do you have information the professional Internet community should be aware of? Contact us.

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