Worldwide cable modem market shipments totaled more than 3 million units in the third quarter of 2002, a 19.4 percent increase from the same period last year, according to Dataquest Inc., a unit of Gartner, Inc. Worldwide cable modem shipments totaled 2.5 million units in the third quarter of 2001.

"'North America continues to see strong demand for cable broadband access services in the third quarter of 2002, and shipments of cable modems reflect this trend,'" said Patti Reali, principal analyst for Gartner Dataquest's worldwide Telecommunications group. "'U.S.-based vendors will start to see even more intense competition for the low-end, simple-functionality modems from the Asian-based manufacturers, and until the market launches advanced services that require more complex, higher-functionality CPE devices enabling home networking and other applications, prices will continue to fall,'" said Reali.

Source: "Gartner Dataquest Says Worldwide Cable Modem Market Grew 19 Percent in Third Quarter of 2002," December 5, 2002

"'Neither the economic slowdown, or the relatively high price points for DSL, cable modem and other broadband access modalities have slowed adoption or demand for these access services,'" said Margaret Schoener, principal analyst for Gartner Dataquest's worldwide Telecommunications and Networking group. "'In fact, there are many locations where broadband demand is not being met because DSL and cable modem are not yet available as an option.'"

"'Over the past three years, a competitive battle between DSL and cable modem has developed, with cable companies clearly being more focused and aggressive in the early stages of this race,'" said Amanda Sabia, analyst for Gartner Dataquest's worldwide Telecommunications and Networking group.

Source: "Gartner Dataquest Survey Shows Steady Increase of Broadband Access in U.S. Households," November 13, 2002