The intensity of competition between cable operators and phone companies went up a notch as Comcast reported a big boost in the number of new subscribers who switched to its cable-broadband service from DSL.

Comcast, the largest U.S. cable television operator, said Thursday when it reported first-quarter 2006 earnings that it increased high-speed broadband subscribers by 437,000. Of these subscribers, about 34 percent came from competitors selling DSL (digital subscriber line) service, compared with about 23 percent of customers a year ago, Steve Burke, chief operating officer of Comcast, said during a conference call with analysts and investors.

"We now get as many customers coming from DSL as we get from AOL narrowband," he said.

Burke suggested that customers are switching to Comcast because they are more interested in high-speed service than in price.

Over the last year, phone companies have slashed prices in an effort to win customers. AT&T dropped the price on its introductory DSL offer to $12.99, and Verizon Communications is offering its 768Kbps service for $17.99. The strategy has worked as phone companies are closing the gap between the total number of DSL subscribers and cable modem subscribers in the country.

Meanwhile, Comcast and other cable companies have held the line on pricing, and instead have increased speeds of their service.

"As the RBOCs (regional Bell operating companies) cut prices we keep focused on speed superiority and reliability," Burke said. "As consumers engage in richer Internet experiences


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