Boston, MA - After enduring an especially challenging second quarter, US Broadband Service Providers appear to be recovering. Verizon, AT&T, Comcast and Time Warner Cable all reported higher net additional customers in Q3'08, suggesting that the dramatic declines in the previous quarter may have been an anomaly. Strategy Analytics estimates that the total number of US broadband subscribers grew 3% 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, leader in the US residential broadband market, added 382,000 net new subscribers in the third quarter-more than AT&T and Verizon combined. This represents a 3% sequential quarterly growth rate. AT&T and Verizon, both in the midst of fiber rollouts, 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."