Wednesday, April 17, 2019

22% of US broadband households have a service speed of 100-999 Mbps

Industry research addresses current competition in gigabit-speed services   

New research from Parks Associates finds 22% of US broadband households have a service speed of 100-999 Mbps, the most common service tier, although 39% of US broadband households do not know their broadband speed. Modern Broadband: Competition and Retention at Gigabit Speeds notes only 6% of US broadband households have gigabit-speed services and interest in upgrading to that speed of service has declined over the past two years.

“Interest in gigabit speeds has declined, due partly to limited availability, but also as households prioritize cost over speed,” said Craig Leslie, Senior Research Analyst, Parks Associates. “Of the US broadband households that switched services in the past year, 50% did so to get a better price, while 36% switched to get better speeds. Households are not seeing the benefits to speed upgrades, especially as providers have conditioned households to differentiate based on pricing.”


Parks Associate gigabit speed Chart

The report notes that consumers show interest in gigabit speeds but that interest does not necessarily translate to adoption. Consumers are failing to see a compelling need for gigabit services, as few households require the performance levels of these services, so providers respond by positioning gigabit services as a premium service and part of gigabit-backed bundles that feature broadband, pay-TV, OTT services, and fixed phone components to appeal to the widest audiences.

“Gigabit service can be a retention tool, positioned as an end destination for consumers as their speed needs increase. A provider’s success might be better measured in terms of consumer interest and conversion to any service tier, than just on its gigabit bottom line,” Leslie said. “As differentiation becomes even more difficult, providers will increasingly add new cloud-based services, such as network control, home security, and smart home applications, to give their subscribers maximum flexibility in finding the right service bundle for their needs.

Modern Broadband: Competition and Retention at Gigabit Speeds examines current competition in gigabit-speed services as well as operator strategies to retain subscribers in the face of such high-speed competition. It also analyzes broadband churn and cord cutting, as well as reasons and likelihood for each, and provides five-year forecasts for fixed-line broadband subscribers

Additional research includes:

By the end of 2023, global broadband adoption will reach almost 1 billion households worldwide. Almost half (48%) of these will be in the Asia-Pacific regions.

US gigabit adoption will grow at 17% CAGR through 2023, with 13 million subscribers by the end of the period.

For information on Modern Broadband: Competition and Retention at Gigabit Speeds, contact To schedule an interview with an analyst or to request specific research data, please contact Sherrelle Lewis at, 972-996-0214.

About Parks Associates: Parks Associates, a woman-owned and woman-led internationally recognized market research and consulting company, specializes in emerging technology solutions serving the consumer and small to medium business (SMB) markets. Celebrating its 35th year in 2021, Parks Associates is a partner to companies navigating the changing consumer technology landscapes through data-driven market insights, extensive consumer and industry intelligence, custom marketing services, and executive networking experiences and conferences.

The company's expertise includes home automation, control systems and security, digital media and platforms, entertainment and gaming, home networks, internet and video services, connected health and independent living solutions, mobile applications and services, support services, consumer electronics, and energy management solutions.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Connected Health Summit, Smart Energy Summit: Engaging the Consumer, and Future of Video: OTT, Pay TV, and Digital Media.

Next: Share of UK broadband households planning to cancel pay-TV has doubled
Previous: Over half of US broadband households who trial an OTT video subscription service convert to paying subscribers


    Be the first to leave a comment.

Post a Comment

Have a comment? Login or create an account to start a discussion.

© 1998-2021 Parks Associates. All Rights Reserved.