Here is some good news as we enter into a new month:
A new report shows that cable operators pulled in the lion’s share of new broadband subscribers during 2Q17.
According to Leichtman Research, while the industry as a whole only added 230,000 new subscribers during 2Q17, cable operators managed to bring in a total of 460,000 subscribers. Telcos, meanwhile, experienced a net loss of 230,000 during that time period.
What’s more, at the end of 2Q17, cable companies had a very strong market share of 64 percent. Telcos, in contrast, had a market share of just 36 percent.
As the report explains, the market share for cable is the highest it has been since the first quarter of 2004.
So, why is this happening?
DSLReports states that there are “tens of millions of frustrated DSL customers paying a significant amount of money for sub 6 Mbps DSL connections.” And these connections don’t technically meet the FCC’s standard broadband definition which is 25 Mbps/ 4Mbps. Now, DSL Reports explains, frustrated customers are migrating to the cable industry which is starting to offer speeds of up to 1 Gbps.
This news should come as welcome news for cable providers, as it highlights the tremendous opportunity at hand in broadband. Now is the time to double down on broadband service, and to consider offering fast and affordable options for customers.
Video may be on the decline, but there is hope for the long term in the ever-growing broadband space.