Now they're looking for ways to combat flattened revenue from their core business, and high-speed Internet access is at the top of the list. More than 4.5 million homes are eligible to receive two-way cable modem service in North America, according to Kinetic Strategies. It predicts that the subscription base will grow to 197,000 next year, reach 1.6 million households in the year 2000, and top 3 million in 2002. The launch of cable-modem service has been rocky. It has been marked by delays, fights over technical standards, cutbacks in upgrading cable TV networks, and criticism that this regulated monopoly lacks enough marketing know-how to execute its plan.
Cable TV is notorious for providing indifferent service, many consumers contend.
But cable-modem service providers say business is starting to blossom. This week, Road Runner launched in El Paso, Texas, part of a plan to roll out in ten cities in its first full year of operation. Microsoft also is bullish on cable and PCs. The cable-modem craze is not limited to North America. More than 40 cable-modem trials or rollouts are under way internationally, from Argentina to Switzerland.