Surprise, the reason why the Telecom Companies are loosing this battle has to do with service. The Cable Companies are currently winning not because they have offer better service, but because their service is "Less Bad".
If you think about it, we are talking about Comcast gaining an advantage over the competition because they provider better service? It is all relative, the question is “Better than What? That is why I chose to describe this as “Less Bad”.
GIGAOM posted an interesting article on the state of the telecoms vs.. cable operators that talks about how the telecoms are