Broadband 2005, What a Year for DSL

Leichtman Research Group just released their 2005 broadband data, and according to their research 9.6 million new broadband subscribers signed up for high speed connections in 2005, bringing the total to about 42.9 million. It was an exceptional year for DSL providers, mostly because of their low cost offerings.

  1. The top DSL providers netted 53% of the broadband additions in 2005
  2. DSL providers added over 5.2 million broadband subscribers in 2005 – about 1 million more than in 2004.
  3. The fourth quarter of 2005 was the best quarter ever for DSL providers, adding 1.5 million net additional DSL subscribers.

The data shows that everyone – big and small – benefitted from the booming demand for broadband. Cable providers still have 57% of the total market, and are doing well to hang on to their market share. Bruce Leichtman, president and principal analyst for Leichtman Research Group says, “Cable operators have added virtually the same number of broadband subscribers in each of the past three years, while DSL providers have grown the market primarily by offering lower priced services.” Smaller companies are also finding equal growth opportunities.

The big surge in 2005, however, does make you wonder how long can this party last. I am pretty certain now selling broadband is going to be a much more of a marketing effort, and need more dollars. Verizon for instance is launching a new marketing campaign targeting specific ethnic groups in their own vernacular.