Phone, cable companies to battle in 2007
No doubt the main event for 2007 will be the impending smack-down between the traditional phone and cable TV industries. The regional Bell companies, after losing millions of customers to rival phone services from cable providers in 2006, are just starting to ramp up their risky push into TV.
In advance of the TV push, Verizon and AT&T have battled back with DSL Internet connections priced as low as $15 a month, hopeful of keeping and winning households that can be sold FiOS or U-verse later. The effort has borne some fruit: Although a rapid overall decline in residential phone lines continues, the percentage of remaining homes with phone and DSL service is growing fast, and the Bells are now signing up more first-time broadband users than their cable rivals.
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