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Broadband Internet Subscriber Base Tops 9 Million
North American Service Providers Adding 119K Residential High-Speed Internet Customers Per Week, Cable Continues to Outpace DSL with 70-Percent Market Share
June 1, 2001

PHOENIX, June 1 -- North American service providers now count 9.3 million residential broadband Internet subscribers according to Cable Datacom News publisher Kinetic Strategies Inc., equal to 8.2 percent household penetration. Cable multiple system operators (MSOs) continue to dominate digital subscriber line (DSL) providers with an estimated 6.4 million cable modem customers in the U.S. and Canada, equal to 70 percent of the market. By comparison, DSL providers served 2.9 million residential subscribers.

As of June 1 there were 7.6 million residential broadband Internet subscribers in the U.S. and 1.7 million in Canada, equal to 15 percent penetration of Canadian households, double the U.S. penetration rate.

Residential Broadband Internet Market in North America
Source: Kinetic Strategies, Inc.

DSL

Cable

Total

Subscribers as of 6/1/01

2,913,636

6,450,916

9,364,552

Subscribers as of 3/31/01

2,543,938

5,800,103

8,344,041

Q1-01 Subscriber Additions

560,148

986,081

1,546,229

Q1-01 Average Adds/Week

43,088

75,852

118,941

Kinetic Strategies estimates MSOs added nearly 1 million broadband Internet subscribers in the first quarter of 2001, 76-percent more than the 560,148 added by DSL providers. Compared to the fourth quarter of 2000, aggregate growth in cable modem subscriber additions was essentially flat while residential DSL additions dropped by 5 percent. Price hikes by DSL providers SBC Communications and EarthLink contributed to the Q1 slowdown, as did the shutdown of Northpoint Communications, which undermined consumer confidence in DSL services. MSOs served 5.8 million cable modem customers as of March 31 compared to 2.5 million residential DSL subscribers.

Kinetic Strategies President Michael Harris will present the companyís latest findings on the broadband Internet market at the National Cable & Telecommunications Associationís (NCTA) Cable 2001 annual convention in Chicago on Tuesday, June 12 at 11:00 AM during the panel ěThe View From 20,000 feet (est.): Strategic Consultants' Recent Research on Cable.î

Kinetic Strategies (http://www.kineticstrategies.com) is a leading broadband research firm and publisher of Cable Datacom News (http://www.cabledatacomnews.com), the only online information service exclusively tracking the cable IP infrastructure and applications market.

CONTACT: Kinetic Strategies (480) 598-9500 mail@kineticstrategies.com

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