***High-Speed Cable Will Reap $17bln, Attract 20mln Users
(March 16)
According to the Strategis Group, cable-modem service will boom
from the surging demand from residential high-speed Internet
customers during the next half decade, generating nearly $17bln,
and drawing approximately 20mln cable-modem users worldwide.
In the US, cable operators will cull $6.4bln in revenue and
attract 18.5mln subscriptions by 2003 from high-speed services.
They also predict that, over the next five years, cable high-
speed Internet access will account for half or more of new
revenues in aggressive markets.
Several companies have already pounced on the high-speed content
strategy. @Home has cemented content front- runner status with
its Enliven unit, which @Home created when it absorbed Narrative
Comm for $96mln, and then there's the content deal with Real
Networks - all elements of @Home's "rich media" strategy.
Although cable's modem services are expected to lead the revenue
surge from 1998-2003, Strategis believes cable telephony will
begin to make its mark, as well, anticipating that 6mln people
will buy cable telephony service by 2003, with 30% of that total
in the UK, and 28% in the US (led by AT&T) and Canada.
Wave Issue 9037 4/07/99 Article 9-03