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While analysts were quick to note that US cable and DSL adoption rates have been half of what was expected several years ago, five Cisco vice-presidents remained optimistic that a healthy market exists to create continued demand for Cisco's broadband gear.
"I don't see broadband demand declining," said Carlos Dominguez, Cisco's group vice-president of US service provider sales. He joined other Cisco officials in a broadband seminar for journalists and analysts in New York last Wednesday (2 October). "Enterprise requirements for bandwidth are huge and increasing exponentially," he said.
Dominguez predicted that a key broadband business application will be employee training, using streaming audio and video, often provided at a worker's home. Cisco officials noted that the definition of broadband varies widely, but it consistently means an always-on Internet connection that is much faster than 128Kbps. For many workplace education needs, speeds of greater than 500Kbps. would be required, Cisco officials said.
There are now 10 million cable modem customers in the USA and about 5 million DSL customers, according to Probe Research in New Jersey, USA Cisco's aggregator router enhancements will allow carriers to upgrade and even double their broadband routing capabilities for incremental costs, something that could help spur broadband rollouts.