Telcos Fall Behind Cable in Broadband Battle

Two separate sources this week are offering up more analysis showing the telcos are falling behind the cable companies in the broadband and video battle. Information Gatekeepers, an analyst firm that once predicted the telcos would overtake cable in broadband penetration, this week issued its High-Speed Access Report for the first quarter of 2008, showing cable is outperforming its forecast and the telcos are under-performing what IGI had forecast in 2006. The latest report is in keeping with what IGI began saying in 2007, when it warned that both AT&T and Verizon were falling behind in implementing high-speed access plans, and thus their data revenues would not make up for lost wireline access income. Also this week, Craig Moffett, vice president and senior analyst at Sanford C. Bernstein & Co., noted that Dish Networks added a net total of 35,000 customers in the first quarter, a decline of 89% from the first quarter of last year. That can't be good news for AT&T, which sells Dish as part of its “advanced” TV service in areas where its U-verse IPTV offering is unavailable. Beginning in the second quarter, Dish will be AT&T’s only satellite video partner, as the former BellSouth territory moves away from that company’s previous deal with DirecTV and onto Dish.
http://telephonyonline.com/broadband/news/disturbing-numbers-telcos-0513/