DSL Slowdown in US?

Of the six major DSL providers, two of the biggest are showing signs of a DSL slowdown. BellSouth reported its 3Q earnings today and said that the company had added 176,000 new DSL subscribers, up from 128,000 in second quarter 2006 but down when compared to 205,000 net additions in third quarter of 2005.

AT&T, which is about to gulp down BellSouth had reported a similar slowdown yesterday. AT&T had added 374,000 new DSL customers, which compared poorly with 529,000 net sign-up for the same quarter last year.

It is too soon to read too much into these numbers, at least today. Embarq, Verizon and Qwest have to report their numbers and will perhaps provide a clear indication of where the market is going. It is important to also wait for the cable providers to report their numbers. However, if you were to twist my arm, I would say – the market is getting pretty saturated.

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