Business prefers ADSL modems to high-selling cable

Recent studies predict sales of cable modems will outstrip those of asynchronous digital subscriber line (ADSL) modems this year.

Despite this, the report finds that ADSL will be the technology of choice for business users.

Analyst Cahners In Stat reported last week that 2.6 million cable modems will ship worldwide this year, compared to a million ADSL units.

Shannon Pleasant, a senior analyst at the US research firm, said: "Cable modems will continue to control the bulk of the market, but we expect sales of ADSL modems to grow more rapidly than cable."

Research group Datamonitor said cable modems will be overtaken by ADSL in the business market, and that as many as 21 per cent of European businesses will use ADSL by 2004. It rates cable modems along with other minority technologies, which will attract about a third of the number of expected ADSL subscriptions.

Cahner said that 308,000 ADSL modems were shipped globally in the first half of 1999, - 35 per cent of them bound for Europe. BT will begin a gradual rollout of its ADSL wholesale service next month.