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Reports forsee massive growth in consumer broadband over the coming years.
Cable will continue to dominate, but DSL and wireless will gain ground. The US market for residential high-speed Internet services will grow to 3.3 million subscribers in 2000, and will reach 16.6 million subscribers by 2004, according to the Yankee Group. The report also said the installed base of domestic HSI subscribers stood at 1.4 million at the end of 1999, with nearly 80 percent of these homes using cable modems for access. But while the cable industry will continue to lead the market over the next five years, the Yankee Group predicts its share of the total installed base of HSI subscribers will shrink to about 42 percent by the end of 2004, as local telcos make DSL services more widely available. Today, however, many of these operators are now owned by deeper-pocketed buyers like Paul Allen's Charter Communications, Adelphia, Cox, and Comcast.