A Federal Communications Commission semiannual report says high-speed internet lines reached 35 million households and small businesses in the U.S. last year, and if large companies are taken into account, high-speed lines in service totaled 37.9 million, MarketWatch reports. Meanwhile, according to a recent PricewaterhouseCoopers report, such growth in broadband access has reached a tipping point and is fast becoming a powerful driver of online advertising in the U.S., writes AdAge. The rapid adoption - a growth rate of more than 20 percent since last year - will allow advertisers to use formats such as video advertising, which big brands are accustomed to.

The phone companies' DSL accounts increased 21 percent, compared with cable's 15 percent gain in the last six months of 2004. Phone companies added 2.8 million DSL accounts, which reached a total of 13.8 million, while cable gained 2.4 million accounts and had 21.4 million high-speed customers at the end of 2004 - a 60.3 share of the consumer and small-business market.

Although cable maintains its lead, phone companies have become more aggressive. SBC's steep price cuts have helped add 504,000 customers in the first quarter of 2005 - the highest growth of any provider - and are expected to consolidate its position as the No. 2 high-speed service provider.

In the meantime, Verizon is rolling out a fiber-based network with speeds that could dwarf those of cable. The company plans to sell cable-like TV service over its fiber wires in a direct challenge to its cable competitors. SBC plans a similar service.