Parks: More Than 12 Million U.S. Households Have Cut Broadband Service

Parks Associates reported that more than 12 million U.S. households have canceled their home broadband service and use only mobile broadband for their Internet needs. The Dallas-based research firm finds there are more than 15 million domestic households that have only a mobile broadband service, which includes more than three million households that have never had home high-speed Internet service.

The finding is noteworthy since high-speed Internet access is key to over-the-top video consumption, and mobile broadband service providers cap user data at a far lower rate than traditional ISPs. Indeed, Comcast, arguably the largest broadband provider in the country, added two million high-speed subscribers in 2020.

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“High cost is the most prominent issue driving households to cut the cord and go mobile only, although service-related issues, from slow speeds to poor customer experience, also contribute,” analyst Kristen Hanich said in a statement.

Currently 94% of all U.S. broadband households use Wi-Fi networking at home, and more than half report problems with their Internet. Parks found that “smart Wi-Fi,” or mesh networking products that would improve Wi-Fi coverage are powerful incentives to staunch churn, as 75% of households likely to switch would stay with their current provider if offered these solutions.

The study said broadband ability to deliver the necessary speeds are more critical now as 41% of broadband households were engaged in remote work or remote schooling. The increase in at-home activity has renewed consumers’ focus on their broadband speeds.

“In September 2020, 9% of broadband households had upgraded their home’s broadband service in the previous 12 months, and the COVID-19 crisis was the main reason for 80% of those upgrades,” Hanich said.

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