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Broadband Growth Slows in the Second Quarter of 2008

Cable Gets Three-Quarters of the Additional Broadband Subscribers

Durham, NH – August 11, 2008 – Leichtman Research Group, Inc. (LRG) found that the twenty largest cable and telephone providers in the US – representing about 94% of the market – acquired 887,000 net additional high-speed Internet subscribers in the second quarter of 2008. These top broadband providers now account for 65.1 million subscribers – with cable companies having 35.3 million broadband subscribers, and telephone companies having over 29.7 million subscribers.

Other broadband findings for the quarter include:

  • The top cable companies added over 670,000 subscribers, representing 76% of the net broadband additions for the quarter versus the top telephone companies
  • Overall, broadband additions in 2Q 2008 amounted to 51% of those in 2Q 2007 – with cable having 85% as many additions as a year ago, and Telcos 23%
  • The top cable broadband providers have a 54% share of the overall market, with a 5.6 million subscriber advantage over the top telephone companies

“Net broadband additions in the quarter were the fewest of any quarter in the seven years LRG has been tracking the industry,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “While the relative number of quarterly broadband adds has certainly peaked, the decline in additions this quarter compared to the same period last year was exacerbated by Verizon and AT&T’s emphasis on selling higher speed FiOS and U-verse bundled services, often at the expense of the traditional DSL service.”

Broadband Internet Provider Subscribers at End of 2Q 2008 Net Adds in 2Q 2008
Cable Companies
Comcast 14,357,000 279,000
Time Warner 8,125,000 201,000
Cox* 3,885,000 40,000
Charter 2,787,300 19,300
Cablevision 2,395,000 52,000
Mediacom 702,000 14,000
Insight 424,600 12,400
CableONE 361,269 4,726
RCN 295,000 4,000
Other Major Private Cable Companies** 2,000,000 45,000
Total Top Cable 35,332,169 671,426
Telephone Companies
AT&T 14,693,000 46,000
Verizon^ 8,330,000 54,000
Qwest 2,732,000 31,000
Embarq 1,364,000 24,000
Windstream 934,300 23,300
CenturyTel 607,000 21,000
Frontier^^ 559,300 16,280
FairPoint^^^ 294,412 (1,166)
Cincinnati Bell 229,000 1,100
Total Top Telephone Companies 29,743,102 215,514
Total Broadband 65,075,184 886,940
Sources: The Companies and Leichtman Research Group, Inc.
* LRG estimate
** Includes LRG estimates for BrightHouse Networks, and Suddenlink
^ No longer includes Northern New England properties now part of FairPoint Communications Corporation
^^ Citizens Communications Company has changed its name to Frontier Communications Corporation
^^^ FairPoint Communications added to the list this quarter
Totals reflect pro forma results from system sales and acquisitions
Top cable and telephone companies represent approximately 94% of all subscribers
Company subscriber counts may not represent solely residential households

About Leichtman Research Group, Inc.

Leichtman Research Group, Inc. (LRG) specializes in research and analysis on broadband, media and entertainment industries. LRG combines on-going surveys and analysis with years of hands-on industry experience to provide companies with a richer understanding of the potential impact and adoption of new products and services. For more information about LRG, please call (603) 397-5400 or visit www.LeichtmanResearch.com.

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