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Short Take: Broadband growth may drive down monthly fees

Steep growth in broadband will bring lower rates for high-speed and dial-up Internet access in the next 5 years, according to a study by research firm Jupiter Research. Some 28 million U.S. homes, or about one-third of the country, will have high-speed access by 2005, the report said. Lead analyst Joe Laszlo said current DSL and cable modem monthly rates of $40 to $60 will drop to around $25 by 2005, with dial-up declining to $7 to $10 monthly. Cable and DSL will continue to be the market leaders, but DSL will close the gap, he said, with about 12 million customers in 2005 compared to 14 million for cable.

Steep growth in broadband will bring lower rates for high-speed and dial-up Internet access in the next 5 years, according to a study by research firm Jupiter Research. Some 28 million U.S. homes, or about one-third of the country, will have high-speed access by 2005, the report said. Lead analyst Joe Laszlo said current DSL and cable modem monthly rates of $40 to $60 will drop to around $25 by 2005, with dial-up declining to $7 to $10 monthly. Cable and DSL will continue to be the market leaders, but DSL will close the gap, he said, with about 12 million customers in 2005 compared to 14 million for cable.

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