Comcast reported their fourth quarter 2007 results on Wednesday, and among the typical “we had a fantastic quarter” rhetoric, there was interesting insight on DSL conversions. Comcast reported that 64% of their net new cable modem customers were defectors from DSL competitors. To counter DSL’s “value pricing,” Comcast instituted an “economy tier” for cable modem. The $24.95/month economy tier more closely resembles common DSL pricing. The strategy appears to be having an impact, now accounting for over half of their new cable modem subscribers, and at the expense of their telco competitors. Comcast ended 2007 with 13.2 million cable modem subscribers, representing a 27% penetration of homes passed.

Other interesting news beyond the financials reported by Comcast includes their continuing commitment to . They intend to have 20% of their footprint migrated to it by the end of 2008. The main implication of DOCSIS 3.0 is dramatically higher broadband speeds, approaching 100 Mbps. It’s Comcast’s answer to .

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