The Future of Cable Broadband

For the past couple months, Excite@Home broadband customers, which comprise 45% of all cable subscribers in the United States, including those customers of AT&T Broadband, Cox Communications, and Comcast, were pinning there hopes on a AT&T buy out.

When the deal fell through, as it became apparent that AT&T was only interested in picking up the Excite@Home network for pennies on the dollar, a bankruptcy court ruled that Excite@Home could shut down its network at midnight yesterday. A second ruling, however, sent Excite@Home back to the bargaining table with its partners and bondholders.

4 million cable subscribers await the results of these meetings.

It is important to note, however, that if Excite@Home is able to renegotiate its contracts with the cable companies and reap a larger profit from each customer (in comparison to the share taken from the cable company itself), that the end result will no doubt be increasing costs for cable Internet services. DSL companies currently operating at a loss can be expected to follow suit as purveyors of the two competing technologies have tried to match prices in the past.

If the negotiations are not successful, well....

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