Boston, MA - August 3, 2006 - The just-concluded deal for Comcast and Time Warner Cable to acquire Adelphia Communications' US cable TV systems will strengthen these top US cable operators in the race to out-bundle their satellite and telco competitors.

Technology research and consulting firm Strategy Analytics' new report, "Adelphia Acquisition Strengthens US Cable in Bundling Battle with Satellite and Telcos," determines that despite Adelphia's poor record for retaining customers, Comcast and Time-Warner are well-positioned to turn around the bankrupt company's former systems, which serve nearly five million subscribers.

"Comcast and Time Warner have strong track records in acquisitions and new service launches," states James Penhune, Director of Strategy Analytics' Broadband Media & Communications service. "Comcast exceeded industry expectations with its speedy turnaround of systems acquired from AT&T Broadband in 2002. More recently, Time Warner staged a company-wide rollout of Voice Over IP telephone service that attracted nearly a million customers during 2005."

This report also predicts that Adelphia's acquisition will help the US cable industry to maintain subscriber growth in digital cable, cable modems and especially cable telephony. Strategy Analytics projects that the number of US homes using telephone service from cable operators will nearly double this year, rising from 5.2 million in 2005 to nine million by the end of 2006.

"Today Adelphia is the only major cable operator still not offering Voice Over IP (VOIP) telephony - an essential service for generating new revenue and deterring customer churn," adds Penhune. "In contrast, Comcast and Time Warner, both of which made aggressive moves into VOIP over the last 18 months, have together attracted nearly two million telephony customers."