Strange signs in broadband equipment market
DSL equipment sales are down, despite strong subscriber growth. What's that mean?
John Borland Staff Writer, CNET News.com
John Borland
covers the intersection of digital entertainment and broadband.Synergy Research reports that sales of cable broadband equipment rose by a healthy 7 percent last quarter. But DSL equipment sales fell, despite strong growth in DSL subscriber lists in the United States. (Synergy hasn't posted the press release, but it should be up soon.)
Is there a disconnect here? Possibly some smoke and mirrors in the way telephone companies are reporting DSL subscribers? Or are they just working off inventory, and this quarter's real subscriber growth will result in a bounce in DSL equipment sales next quarter? Either way, it's something to watch in the upcoming months.