Cable Residential Revenue to Reach $119.8 Bil. by 2015, Says Kagan.

MONTEREY, Calif. -- A new study from Kagan Research reports that in the second half of 2006 cable operators are riding a wave of investor optimism related to the accelerating rollout of Internet Protocol (IP) voice services and the accompanying halo effect on basic subscriber retention and overall revenue per subscriber. Kagan's BROADBAND CABLE FINANCIAL DATABOOK (26th edition) describes the cable industry's stand-out growth stats in a myriad of categories. For example:

--Cable IP voice homes marketed will leap from 31.2 mil. at the end of 2005 to an estimated 68.7 mil. by year-end 2006;

--Cable IP voice subs have gone from 600K at year-end 2004 to 2.6 mil. at year-end 2005, and are forecast to jump to 6.5 mil. by year-end 2006.

--High-speed data penetration of basic video subscribers hit 39% at year-end 2005 (vs. 32% at year-end 2004) and is expected to grow to 45% by year-end 2006.

--Digital cable subs now surpass 30 mil., based on a projected increase from 28.6 mil. at year-end 2005 to 31.6 mil. at year-end 2006.

--In 2006, total residential revenue is expected to grow 9.6% to $68.2 bil., at an average ARPU of $87.04 (vs. the $79.42 of 2005).

The industry continues to consolidate, with Comcast and Time Warner having completed their acquisition of Adelphia Communications. The top 10 MSOs, pro forma the deal, will own or control 90% of the nation's cable subs, and many clustering benefits in major metro areas have yet to be realized.

These include the exploitation of the potential of interactive advertising, greater telephony efficiencies, increased penetration into businesses, better marketing economics, and a rationalization of operating costs. According to Robin Flynn, Kagan senior analyst, "These factors, along with the continued growth of core businesses, will combine to push cable residential revenue to $119.8 bil. by 2015, of which just 41% will be delivered by basic cable, vs. 47% in 2006."

BROADBAND CABLE FINANCIAL DATABOOK provides comprehensive metrics and deal information, including private value benchmarks, as well as industry operating and financial statistics, up-to-date profiles of top MSOs and independent owners, current, detailed subscriber counts and Kagan's authoritative 10-year cable revenue projections. This edition also includes a database of Verizon's fiber market locations, and gives deployment and takeup projections for telco launch of video services.

For table of contents and more information on BROADBAND CABLE FINANCIAL DATABOOK go to www.kagan.com/BCFD

About Kagan Research, LLC 

For over 35 years, media and communications operators, content providers and institutional investors have relied on Kagan Research for thought leadership in media business research. Kagan's consulting, publishing and data services provide exclusive benchmarking data and analysis, market advisories and long-range forecasts for TV, radio, cable, satellite, wireless, movie and sports sectors, as well as informed perspectives on emerging media, digital communications, and Internet technologies. Kagan is one of the world leaders in valuing and appraising media assets. For more information, visit www.kagan.com. Kagan Research is a division of JupiterKagan, Inc.

About JupiterKagan, Inc.

JupiterKagan, Inc. was formed in 2006 from the merger of JupiterResearch and Kagan Research, two companies providing thought leadership, research and advice in the domain of the media and telecommunications, the Internet and emerging consumer technologies. The company's deliverables include continuous information services (available by subscription), research reports, data, inquiries with research analysts, appraisals, litigation support and consulting. JupiterKagan operates from five offices in the United States, United Kingdom and France. For more information, visit www.jupiterkagan.com.