Cable modem service subscribers hit 27M

Cable modem services are "absolutely hot", In-Stat/MDR is quoted on saying. The high-tech market research firm reports that total worldwide cable modem subscribers reached 27 million in mid-2003, and is expected to hit 34 million by the end of the year. By 2007, In-Stat projects that there will be 68 million worldwide cable modem subscribers.

"With demand for high-speed Internet access increasing, many of the world's leading cable TV operators have invested heavily to upgrade their cable infrastructure in order to provide cable modem services," said Mike Paxton, a senior analyst with In-Stat. "These investments are starting to pay off."

Cable operators are reportedly particularly enthusiastic about cable modem service because of the service's attractive operating margins. In-Stat says that with the cost of cable modem equipment rapidly decreasing, many North American cable operators are enjoying monthly operating margins that range from 50 to 100 percent.

Further, cable TV receiver operators are said to have collected $11 billion in cable modem

service revenues in 2002. This amount is forecasted to increase to $15 billion in 2003.

Geographically, In-Stat says that North America has the most cable modem subscribers with over 14.6 million. The Asia-Pacific region was second with 6.6 million, followed by Europe with 3.7 million.