Cable's Investment in DSL Turning the Corner

[DudeAsInCool]

Cable Companies Profit From Demand for High-Speed Internet

By KEN BELSON

Published: July 28, 2004

Cable companies, which have been weighed down for years by heavy investments and sagging subscriber growth, are starting to turn the corner.

Comcast Corporation, the nation's biggest cable operator, said today that it earned $262 million in the second quarter, after losing $22 million in the same period last year, thanks to an increase in the number of customers signing up for high-speed Internet and digital video services. Comcast, based in Philadelphia, also said it would double its share buy-back program. Comcast's showing, combined with stronger sales growth reported today by Time Warner Cable, the second largest cable company, are a sign that the cable industry has started to reap the benefits from its spending and building binge started in the 1990's.

The industry spent about $85 billion combined to upgrade its networks so they could offer high definition television, broadband Internet connections and telephone service. That construction is largely complete, so the companies have been introducing new products and ramping up marketing efforts to recoup their investments.

You can read the full article here:

http://www.nytimes.com/2004/07/28/business...28CND-CABL.html