DSL Growing Faster than Cable Internet

Financial research firm Morgan Stanley released data that shows telecom companies are signing up new broadband users by a wider margin over cable services. Analysts expect 1 million new DSL lines during the quarter, which would constitute 55 percent of all new broadband subscribers.

Morgan Stanley analyst Simon Flannery wrote in a research note to clients Monday that the fight for market share was critical to telecoms as a way to recoup possible losses from the rise of VoIP services, and to add revenue in the near term.

DSL providers have become much more aggressive in pricing for Internet services. In early June, SBC announced that it would offer DSL access for $14.95 USD per month. Verizon, another DSL provider, offers broadband access for $29.95 USD and includes MSN Premium as part of its subscription package.

Cable provider Comcast, on the other hand, offers cable Internet access for $42.95 USD per month. Not all companies have followed Comcast's stubbornness - Time Warner has lowered prices on the west coast to $29.95 USD per month.

DSL is providing a bright spot for telecoms otherwise hit hard by customers disconnecting their wireline services; Banc of America estimates nearly 1.8 million customers have shut off their services. However, DSL and long-distance have helped telcos recoup much of that financial loss.