TULSA, Okla., May 15 /PRNewswire/ -- DSL lines in service in North America
totaled 6,225,584 at the end of the first quarter, according to new statistics
published by TeleChoice, Inc.
The U.S. had 4,884,827 DSL lines in service at the end of the quarter,
representing 12% growth over lines reported end of last year. The incumbents
(ILECs) account for 89% of the market, while the competitive providers
(CLECs/IXCs) account for the remaining 11%. The ILEC market share increased
1% from last quarter. Canada ended the quarter with 1,340,756 DSL lines in
service. To gather this data, TeleChoice interviews each DSL facilities-based
service provider on a quarterly basis.
For the U.S. market, net subscriber additions were 538,287. This is the
second quarter in a row in which more than 500,000 subscribers were added.
Among major ILECs, BellSouth had the largest percentage growth, with overall
lines up 17% compared to the end of the previous quarter. Overall, ILECs
increased their lines in service by 13%.
The competitive provider share of the market grew a small 5% over the
fourth quarter and only now is exceeding the subscriber numbers it had before
the Rhythms fallout third quarter of 2001. The largest player, Covad -- which
represents 66% of the CLEC market -- grew only 2% during the quarter.
However, with significant first quarter revenue growth after its successful
restructuring bid, Covad could still spur a rebound in this sector.
The Canadian market once again outpaced the U.S. market during the
quarter, with an overall growth rate of 17%. Net subscribers grew by
195,217 subscribers, 10% less than were added at the end of last year.
"The North American DSL market continued its slow but steady growth again
in the first quarter," notes TeleChoice DSL Analyst Pat Hurley. "None of the
major providers offered customers any significant incentives in the first
quarter, and the deployment numbers reflect this fact. ILEC dominance of the
market has continued, and BellSouth, in particular, has been expanding its
market share significantly by continuing to expand its reach with remote
terminal deployments and successfully marketing its services against competing
cable MSO services."
"Thirteen percent quarter-to-quarter growth is not insignificant," notes
TeleChoice President Claudia Bacco. "But this level of growth is not closing
the gap with cable companies, who have over twice the market share among
residential broadband users. DSL service providers need to continue their
reach extension efforts, improve their service marketing and pricing
incentives, and move faster towards new value-added service offerings if they
want to truly compete with the cable MSOs. The success of cable operators in
adding voice services to their video and data portfolio is perhaps the biggest
challenge ILECs face in the residential market today, and one they must
aggressively fight with their own innovative service bundles if they want to
remain competitive in the long run against the cable threat."
The complete set of statistics is available from TeleChoice's http://www.xdsl.com
site, under "Deployment and Projections" in the left-hand sidebar. For
current news and analysis of the DSL industry, stay tuned to TeleChoice's
http://www.xdsl.com .
About TeleChoice
TeleChoice, Inc. is the strategic catalyst for the telecom industry.
TeleChoice helps telecom businesses crystallize their strategy and value
proposition and accelerate their entry into new markets. Founded in 1985,
TeleChoice has developed winning business and marketing strategies for scores
of successful public and startup companies. More information on TeleChoice is
available at http://www.telechoice.com .
SOURCE TeleChoice, Inc.
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Related links:
http://www.telechoice.com
CONTACT:
Pat Hurley, DSL Analyst of TeleChoice, Inc.,
+1-858-831-0396, or phurley@telechoice.com
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