Leichtman Research Group claims that the number of high-speed Internet subscribers in the United States fell in the second quarter.

Apparently it is the lowest level of take-up since the outfit started looking at the broadband market seven years ago. The 20 largest cable and telephone companies added 887,000 residential and small-business subscribers in the three months ending June 30. This is half the number of new customers in second quarter of 2007.

In a press release analyst Bruce Leichtman said the slowdown mainly results from a drop in new customers at the phone companies. AT&T Inc. and Verizon Communications have begun to emphasise faster, more expensive services over entry-level DSL and have stopped offering the cut price services they used.

Cable companies have done much better, adding 85% as many new subscribers as they did a year ago. Most of the broadband business went to cable companies. Part of the problems is that the broadband market is saturated with those who want broadband have already got it. X

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AP