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“The reality is, fixed broadband is continuing to grow in the US, and not being replaced by mobile broadband as some have reported,” said Jason Blackwell, Director of the Service Provider Strategies service (SPS) at Strategy Analytics. He added, “The cable operators are driving the growth with increased speeds and multiplay bundles. During 2015, Comcast accounted for 44% of new subscribers and the companies forming the New Charter made up another 47% of new subscribers. The Telco operators haven’t been able to shake off the losses of DSL subscribers, but we expect to see increased fiber deployments in the coming quarters, which should help AT&T and Verizon return to growth.”
While mobile broadband is not yet replacing fixed services, Wi-Fi is playing an important role in the future plans of service providers. Cable operators have rolled out Wi-Fi networks as part of their mobility strategy, and these deployments will continue to grow. Charter has pledged to deploy an additional 300,000 hotspots as a condition of the recently closed merger with Time Warner Cable and Bright House Networks.
Jason Blackwell added, “Wi-Fi will allow cable operators to more effectively compete for quad-play customers without the expense of creating and managing a mobile network. Combined with MVNO relationships, Wi-Fi can create a compelling service offer, making the cable companies more competitive with the traditional mobile operators.”
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SOURCE Strategy Analytics