Nationwide broadband additions were significantly lower in 2Q09 as compared to 2Q08, according to a research report released yesterday by Leichtman Research Group. Leichtman analysts found that the 19 largest cable and telco Internet Service Providers in the US–which account for 93% of the market–added a total of 633,959 Internet subscribers in this year’s second quarter, 71% of the total added in 2Q 2008. Total US broadband subscribers totaled 69.9 million as of end June, according to the report.
Telco ISPs continued to gain ground on their cable company counterparts. The eight largest telcos added nearly 385,000 broadband Internet subscribers in 2Q–61% of total adds–as compared to their cable counterparts, which added nearly 249,500 during 2Q this year.
Telco’s performance so far this year contrasts sharply with 2Q a year ago, when cable ISPs accounted for 75% of total additions, Leichtman’s analysts note. Telco broadband Internet subscriber additions are running 178% above last year’s tally while cable ISPs’ broadband adds are running 37% ahead of last year’s total.
The top telcos had nearly 31.9 million broadband Internet subscribers as of end 2Q, according to the report. Top cable companies’ total broadband Internet subscribers numbered just over 38 million, a 54% share of the market, according to Leichtman’s research.
“The second quarter has proven to be traditionally weak for broadband growth, but with the market becoming more mature, broadband adds further waned in 2Q 2009,” Bruce Leichtman, the group’s president and principal analyst said in a news release. “In a reverse of last year’s second quarter, when cable operators got three-quarters of the net broadband adds, Telcos earned over 60% of the broadband net adds in 2Q 2009.”