Market researcher Strategy Analytics (News - Alert) says after enduring a challenging second quarter, the total number of U.S. broadband subscribers grew by three percent in the third quarter.

 

The Researcher says a majority of broadband service providers in the nation are recovering from slowdown with big brands - such as Verizon, AT&T, Comcast (News - Alert) and Time Warner Cable - reporting higher net additional customers in the third quarter.

 

“The broadband market has proven to be quite resilient,” notes John Lee, Analyst in the Strategy Analytics Multiplay Market Dynamics Service. “Despite a troubling economic environment, increased unemployment, and historically low consumer confidence levels, broadband customers are not disconnecting en masse.”

 

Rather, says Strategy Analytics, the phenomenon is attributable to a decrease in new connects, and existing customers moving from DSL to cable broadband offerings.

 

Philadelphia-based Comcast added 382,000 net new subscribers in the third quarter, more than AT&T (News - Alert) and Verizon combined. This represents, according to Strategy Analytics, a 3 per cent sequential quarterly growth rate.

 

 AT&T and Verizon (News - Alert), both rolling out fiber cables, posted net subscriber gains of 149,000 and 129,000, respectively.

 

Comcast estimates that as many as two-thirds of its net additions in the quarter were converts from DSL. In addition, the company’s recent announcement of “wideband” service rollouts in select markets—employing DOCSIS 3.0 technology with advertised speeds of 50 Mbps—will likely further this trend.

 

“Cable companies are the clear winners here, and continue to take share from the likes of AT&T and Verizon,” noted Ben Piper, Director of the Strategy Analytics Multiplay Market Dynamics service.

 

Telcos are not adequately keeping up with the huge demand for fiber, and impatient consumers are making the switch from DSL to Cable, the Researcher said in a report.

 

Boston, MA-based Strategy Analytics focuses on market opportunities and disruptive forces in the areas of Automotive Electronics and Entertainment and Broadband.