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Broadband subscriptions dropped 51% since last year, according to data released by Leichtman Research Group. Only 887,000 subscribers were added to a group of companies comprising 94% of the market. Cable companies accounted for 670,000 of those additional subscriptions.

The numbers also seem to support research from the University of Minnesota suggesting that internet traffic growth claims by the cable companies and other internet service providers are largely overblown.

There are now 65.1 million broadband subscriptions among this group of companies. Cable enjoys 35.1 million of the subscriptions, while the phone companies have over 29.7 million of them.

Here’s the breakdown among the top cable and phone companies:

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Plaxo has signed an agreement to be aquired by cable giant Comcast, accoring to a post on the Plaxo blog. The two companies had previously been working together in partnerships, but have now decided that a permanent merger would maximize their efforts.

Those efforts include a unified approach to mashing up tv and social media. For example, one of the goals includes photo sharing across a variety of mediums including mobile, tv and computer.

Plaxo is known for its online address books that have been instrumental for popular social networking sites. The company is dedicated to open source and privacy efforts as well.

Clearwire isn’t the latest Google acquisition. The Internet search giant, though, has joined a group of blue-chip corporate investors in the new Sprint-Nextel bailout of Clearwire — a move that will save WiMax and further Google’s innovations in mobile search.

Clearwire and Sprint Nextel said today they plan to merge their wireless broadband units to create a $14.55 billion communications company. Sprint Nextel will own a majority equity stake (51 percent) in the new joint venture.

Clearwire, will receive a $3.2 billion cash infusion from Google Inc., Intel, Comcast., Bright House Networks and newly spun-off Time Warner Cable. The investment is based on a target price of $20 per Clearwire share and will give the companies a 22 percent stake in the new venture.

The new Clearwire JV will be headed by Ben Wolff, Clearwire’s current CEO , who said in a statement that the merger’s “expanded relationships with Intel (INTC) and Google (GOOG) will expand our vision of an open network.” He added that the partners will enables Clearwire “to tap into some of the greatest innovators of our time.”

Clearwire, a startup founded by cellular pioneer Craig McCaw, is shooting for a U.S. W9Max network of 120 million to 140 million people by the end of 2010.

So here’s what we want to know: “How fast will WiMax be?”

Clearwire’s first mobile WiMax network (being built in Portland) boasts speeds of 5 to 6 mbps on the downlink and 2 to 3 mbps on the uplink while going down the freeway.

Wow. That’s not your father’s Internet Highway.

That’s the frackin’ Internet Autobahn.

Google has been busy on the legal, tech and policy front lately, and there’s a primary theme running through all of their pursuits: Google loves wide open spaces.

First up, as is being widely reported, Clearwire and Spring are combining their wifi and broadband services. But did you know Google is one of the companies behind the $3.2 billion deal? They’ve teamed with Comcast, Intel Capital, Time Warner Cable, Bright House Networks and Trilogy Equity Partners to create the new company.

Sprint’s 2.5 GHz spectrum is part of the deal. And spectrum is something at the top of Google’s wish list lately. Google didn’t win any of its bids on a recent FCC spectrum auction. And last week, Google raised concern that Verizon will not keep its spectrum auction space open afterall.

Google is also facing resistance to its plan for “white spaces.” Several sports groups including the NFL, NBA and NASCAR are now lobbying the FCC to not open up “white spaces” on TV spectrum. Google wants them opened up for wireless. The groups are concerned about signal interference for things like coaching headsets and referee microphones.

In a different kind of open battle, Google is saying that it won’t settle a lawsuit brought by Viacom over copyrighted material, according to Business Week. David Eun, vice president in Content Partnerships at Google told Dow Jones newswires that they plan to go all the way to the Supreme Court with the case. Viacom brought the $1 billion suit after the two companies couldn’t reach a licensing agreement for content on YouTube.

Whether it’s content or spectrum, Google wants to keep things out in the open. They’re going to great lengths to make it happen, and while corporations may not be thrilled, consumers are likely to be happy should Google meet its open goals.

Related Reading:
Google’s New Wifi Push Will Drive Mobile Search

Yahoo mailed a letter to shareholders outlining the reasons the Board believes Microsoft’s proposal significantly undervalues Yahoo and isn’t in the best interests of Yahoo stockholders.

In the missive Yahoo CEO Jerry Yang emphasizes its strong brand, financial strength, strategic investments, technology, and relationships with marketers, reminding shareholders the company holds a leadership position.

The upside for Yahoo without Microsoft? Not surprisingly, Yang sees “a huge market opportunity” in the $45 billion online advertising market projected to grow to $75 billion in 2010.

A copy of the letter from CEO Jerry Yang follows:

Dear Stockholders,

On February 1, 2008, Microsoft made an unsolicited proposal to acquire your company. As much has been reported in the press recently, I wanted to reach out to you personally to let you know why your Board of Directors, after a careful review by Yahoo!’s management along with our financial and legal advisors, believes that Microsoft’s proposal substantially undervalues Yahoo! and is not in the best interests of our stockholders.

Most importantly, I want you to know that your Board is continuously evaluating all of Yahoo!’s strategic options in the context of the rapidly evolving industry environment, and we remain committed to pursuing initiatives that maximize value for all our stockholders.

We have a unique combination of strengths

– Yahoo! is one of the most recognizable and admired brands in the world. We have over 500 million users (nearly 1 out of every 2 internet users worldwide). In the U.S., we are # 1 in many of the most used online services including personalized home pages, mail, news, music, shopping and travel. Because we have leadership positions in so many indispensable online services, users spend more time on Yahoo! sites than anywhere else online.

– Yahoo! is an attractive partner for marketers. Yahoo! is #1 in online display advertising, which represents 90% of the advertising inventory on the web, and we are also a leader in search marketing and a pioneer in the growing fields of mobile advertising and online video advertising. Through Yahoo!, advertisers can now connect with consumers on our owned sites as well as those of our growing network of partners including eBay, Comcast, AT&T, a consortium of over 600 newspapers, Forbes.com, Cars.com, WebMD and more.

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With limited options, Yahoo board members face increased pressure to accept Microsoft’s hostile bid. Yahoo has resisted Microsoft’s advances in the past, convincing shareholders a turnaround was just around the corner.

So how much money did Yahoo leave on the table by declining the earlier offer? Microsoft won’t publicly reveal the bid. Yahoo CEO Jerry Yang would be loath to share the offer from the company the Valley loves to loathe.

Here’s the rumored Microsoft bid made last year: $40 plus per share. That’s the number Oppenheimer analyst Sandeep Aggarwal cited in a note to clients, suggesting a potential 26-40 percent upside for investors from the current offer of $31 per share - if Yahoo can negotiate a better deal for its shareholders or find a more suitable suitor.

So who’s willing - besides Google - to play white knight to Yahoo’s digital damsel in distress?

The knights hardly comprise a round table. Only five companies have been widely reported as possible suitors: AT&T, Comcast, News Corp, Time Warner, and Verizon Communications. None has stepped up to enter the fray. Rupert Murcoch of News Corp publicly stated he didn’t plan to prepare a competitive bid.

The Wall St. Journal (subscription) reported this morning that Yahoo’s hoping against hope that a rival bidder or a business tie-up with Google would save the day. Google desperately wants to derail the deal, even though their share of searches continue to erode Yahoo’s market share.

Mike Arrington of TechCrunch expects shareholders to approve the deal soon.

A Google-Yahoo partnership, though, isn’t an ideal solution for Yahoo either. It’s not as if Google could sign a noncompete agreement with Yahoo in lines of business Yahoo has strength in: local mobile, e-mail, display advertising, or e-mail.

How much revenue Google would be willing to forego by partnering with Yahoo in search also remains in question. In its quest to index the world’s information, Google has become a victim of its own success.

A grizzly bear hug (not even a teddy bear hug) from Ballmer may have squeezed the life from Silcon Valley’s once and future king.

Now it seems Google’s mouth-to-mouth resuscitation of Yahoo’s search business will be the only hope for Yahoo’s survival.

Free Press, the organization behind SaveTheInternet.com, responded to the Federal Communications Commission’s expressed intent to investigate Comcast and Verizon Wireless over alleged content blocking. The group urged the FCC to respond quickly in order to protect the free flow of information on all networks.
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Federal Communications Commission (FCC) Chairman Kevin Martin says the regulatory agency will investigate allegations that Comcast interferes with p2p Internet traffic. He also said Verizon Wireless would be under the microscope after complaints the company blocked text messages from an abortion rights group.
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