Wave Issue 9036 4/6/99 Article 6-01

***Cable Modem Service Revenues Become Reality
(March 15)

According to World Cable & Satellite Markets, a study by The
Strategis Group, during the next five years, cable modem service
will expand dramatically to meet the demand of residential high-
speed Internet access in most countries. The report forecasts
nearly $US 17 billion global cumulative cable modem service
revenues for 1998-2003, and nearly 20 million cable modem users
world- wide in 2003.

World Cable Modems: 1998-2003
1998 1999 2000 2001 2002 2003
Cable Modem
Subscribers (millions) 1.0 2.1 4.2 7.8 12.6 18.5
Cable Modem
Revenues(billions, $US) 0.4 0.9 1.7 2.9 4.5 6.4

According to the report, during the next five years, cumulative
cable modem service revenue will nearly equal or exceed new cable
television revenue in Germany, Netherlands, Poland and several
other countries. In the U.S. and Canada, 5- year cumulative cable
modem service revenue will equal 40% to 50% of cable television
revenue.

Net New Cable Television and Modem Revenues: 1999 – 2003
(millions, $US)

Cable Television Cable Modem
Service Revenues Service Revenues
Canada 756.3 322.2

Germany 465.0 373.0

Netherlands 91.3 182.7

Poland 106.3 107.6

World Cable & Satellite Markets provides an overview of the
global cable and satellite industry including multi-channel
television, broadband services (data, Internet, multimedia) and
cable telephony. It includes country- level forecasts of cable
and DBS/DTH subscribers and revenues, based in part on primary
survey research of cable and satellite operators.

The report is available for US $2,300 (paper) and US $3,450 CD-
ROM (PDF or HTML formats).

www.StrategisGroup.com