Slower growth in broadband leading to price wars

A decline in new subscriber growth in Q2 2008 has led some broadband operators to respond by offering special price promotions.  Phone companies were hit especially hard by the slowdon, adding about 23% of new subcribers they did in the same period a year ago.  Verizon has started offering 6 months of free DSL service to new customers while AT&T is guaranteeing its current prices over the next two years.

Cable operators, such as Comcast and Time Warner, did not suffer as greatly, adding 75% of the new customers that they did in Q2 2007.  But as the market continues to tighten, it is expected that these operators will also respond with new promotions.