RCN not seeing strong demand for 60 Mbps service

While RCN (Nasdaq: RCNI) continues launch DOCSIS 3.0 in suburban Philadelphia and other markets, the cable overbuilder hasn't seen strong demand for its 60 Mbps high-speed Internet service, CEO Jim Holanda told FierceCable Tuesday.

"Once we launch DOCSIS 3.0, our core speeds are 15 and 25 Mbps. We haven't seen large demand for higher speeds than that," Holanda said.

Using Cisco (Nasdaq: CSCO) cable modem termination systems and modems, RCN began upgrading its cable systems to DOCSIS 3.0 in 2009. Holanda said RCN is also marketing wideband service in the New York area and portions of Delaware County, Pa. He said RCN will begin selling subscribers wideband in its Chicago and Boston markets later this year.

"We are about 60 percent complete, and will be 100 percent complete by the end of this calendar year," Holanda said, referring to the percentage of RCN cable systems offering subscribers wideband service.

While RCN has seen limited demand for the wideband product, its rollout could help it compete against Comcast (Nasdaq: CMCSA), Time Warner Cable (NYSE: TWC) and other rivals. It also markets TiVo's (Nasdaq: TIVO) high-end TiVo DVR to its customers. Holanda wouldn't disclose the number of subscribers that have ordered service.

RCN is charging customers who order its 60 Mbps high-speed Internet service $49.99 monthly, if they also order its cable TV and phone services. Its 25 Mbps service costs $29.99 monthly, while its 15 Mbps service costs $39.99 monthly.

For more:
- see news release from RCN about launch of wideband in Leigh Valley, Pa. 

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