LRG: Just 190K Broadband Adds in 2Q16

A new study from Leichtman Research Group (LRG) analyzes second quarter broadband subscriber additions among the 14 largest U.S. cable and telephone providers.

According to LRG, growth within the above-mentioned group (which makes up about 95 percent of the U.S. market) totaled about 190,000 net additional high-speed Internet subscribers. This is the lowest number of overall broadband additions since LRG first began tracking the industry 15 years ago.

What’s more, the last seven second quarters represent the seven fewest quarterly broadband net additions in the last 15 years.

Cable companies brought in the lion’s share of broadband subscriptions during the second quarter, with 500,000 additions. This is 139 percent of the net additions that top cable companies generated in 2Q15.

Unfortunately, cable’s gains were offset by significant broadband subscription losses in the telecommunications industry. The top phone providers lost about 360,000 subscribers during the second quarter. By comparison, the top phone providers only lost about 150,000 subscribers during 2Q15.

Telecommunications providers, it should be noted, have experienced net broadband losses in four of the last five quarters which is a troubling sign.

“While Telcos lost more broadband subscribers in 2Q 2016 than in any previous quarter, cable companies added over 550,000 subscribers in the traditionally weak second quarter,” stated Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “Over the past year, cable companies have added about 3.5 million broadband subscribers, while Telcos have had net losses of about 500,000 broadband subscribers.”

It will be interesting to see how the rest of the year plays out. What are your predictions?