Cable broadband prices go up; DSL goes down

The price gap between cable broadband service and phone carriers' digital subscriber lines widened to an all-time high in August, according to a survey by SG Cowen.

Cable-modem service was, on average, 75.8 percent more expensive than DSL during the month, up from a 53.3 percent gap in July. While phone carriers cut prices — the average DSL price decreased by 9.2 percent — cable companies raised them.

Leading the price decline was Verizon Communications which rolled out a slower service that cost just $14.95 a month, with a free month of service with a one-year commitment.

For Subscribers

FOR SUBSCRIBERSCBP leaders cut out of Trump ad buy decision

FOR SUBSCRIBERSAmerican passenger drafted goodbye texts to her family as Flydubai plane plummeted

FOR SUBSCRIBERSCornell rape allegation pushes embattled New York prosecutor into national spotlight

FOR SUBSCRIBERSAbdul El-Sayed tries to woo MAHA voters as Democrats seek inroads with RFK’s supporters

FOR SUBSCRIBERSKratom-like substances are popping up in a typically benign supplement

FOR SUBSCRIBERSGOP super PAC increases its spending for Sen. Jon Husted in tough Ohio race

FOR SUBSCRIBERSRecords reveal tumultuous marriage between slain New York Times executive and wife

FOR SUBSCRIBERSFrom clean energy warrior to ‘wall of shame,’ James Talarico reverses on a fossil fuel money pledge

FOR SUBSCRIBERSCongressional staff planned official trip with luxury stops in Italy and France weeks before election

FOR SUBSCRIBERSA harrowing ordeal aboard an Israel-bound plane

FOR SUBSCRIBERSOpenAI CEO Sam Altman to skip congressional hearing on rogue AI agents

FOR SUBSCRIBERSKey DOJ lawyers departed Trump ‘grand conspiracy’ probe amid pressure to produce, source says

FOR SUBSCRIBERSTrump’s new AI chatbot often links to a site launched under Clinton 26 years ago

FOR SUBSCRIBERSAt MAHA summit, industry CEOs the movement once vilified take the stage

FOR SUBSCRIBERSThis Paralympian has two goals: Win medals and give away $500,000 to her teammates

By contrast, cable broadband service got 4.1 percent more expensive, on average. Comcast Corp. raised prices an average of 7.9 percent, while Time Warner Cable raised by 5.8 percent, according to the survey.

Aggressive price cuts have helped phone carriers make headway in the broadband market and challenge cable companies, analyst Lowell Singer said in a note.

For Subscribers

FOR SUBSCRIBERSCBP leaders cut out of Trump ad buy decision

FOR SUBSCRIBERSAmerican passenger drafted goodbye texts to her family as Flydubai plane plummeted

FOR SUBSCRIBERSCornell rape allegation pushes embattled New York prosecutor into national spotlight

FOR SUBSCRIBERSAbdul El-Sayed tries to woo MAHA voters as Democrats seek inroads with RFK’s supporters

FOR SUBSCRIBERSKratom-like substances are popping up in a typically benign supplement

FOR SUBSCRIBERSGOP super PAC increases its spending for Sen. Jon Husted in tough Ohio race

FOR SUBSCRIBERSRecords reveal tumultuous marriage between slain New York Times executive and wife

FOR SUBSCRIBERSFrom clean energy warrior to ‘wall of shame,’ James Talarico reverses on a fossil fuel money pledge

FOR SUBSCRIBERSCongressional staff planned official trip with luxury stops in Italy and France weeks before election

FOR SUBSCRIBERSA harrowing ordeal aboard an Israel-bound plane

FOR SUBSCRIBERSOpenAI CEO Sam Altman to skip congressional hearing on rogue AI agents

FOR SUBSCRIBERSKey DOJ lawyers departed Trump ‘grand conspiracy’ probe amid pressure to produce, source says

FOR SUBSCRIBERSTrump’s new AI chatbot often links to a site launched under Clinton 26 years ago

FOR SUBSCRIBERSAt MAHA summit, industry CEOs the movement once vilified take the stage

FOR SUBSCRIBERSThis Paralympian has two goals: Win medals and give away $500,000 to her teammates

During the first and second quarters of 2005, cable companies captured 47.8 percent and 46.3 percent of net new broadband subscribers, respectively, down from 50.3 percent in 2004 and 60.8 percent in 2003. SG Cowen estimates that cable companies will capture about 47.3 percent of net new broadband subscribers in 2005.

Cable companies "must continually reassess whether to accept share losses or to fight back by reducing high speed data pricing and accepting lower margins," Singer wrote.

Singer or one of the other authors of the report own shares of Cablevision; SG Cowen or one of its affiliates has managed or co-managed a public offering of Cablevision and Comcast securities in the last three years.