Cable vs. Telco: The Battle Heats Up

S&P Ratings examines the competitive landscape as players from both camps scramble to sign up customers for voice, video, and broadband offerings

The trends in U.S. wireline telecommunications of the past two years have continued over the past several months, with phone companies still losing residential-access lines while adding more digital-subscriber-line (DSL) customers. Meanwhile, competition between cable and phone companies for video customers has heated up. Overall growth remains good in the wireless sector, but not all carriers are benefiting equally. The cable industry seems to have peaked in terms of the number of video subscribers, though growth from advanced services is still solid.

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