Market share shifts between cable and telco providers tell part of the story of the broadband industry's health and vibrance, but the effects of new household formation on subscriber growth -- a somewhat unappreciated metric -- tell much more, according to a top industry analyst.
In a new report, MoffettNathanson analyst Craig Moffett said broadband growth would have slowed considerably in 2018 if not for the strength in new household formation, which grew 1.3% in Q4 2018 alone. By his estimate, new household formation accounted for about 44% of the 2.7 million industry net adds in 2018.
"The stronger growth in broadband is not somehow tarnished by the fact that it owes to a macro driver like growth in occupied dwelling units. But it is important to understand the source of the industry's growth," Moffett explained.
With respect to market share trends, US cable operators again "won" Q4 2018, as MSOs tacked on 841,000 net broadband adds in the period, up 4.9% year-on-year. The telcos lost 145,000 subs, down 1.3%, while satellite broadband service providers added 28,000 net subs, up 9%. When they are all combined, US broadband providers raked in 724,000 net adds in Q4, up 2.9%.
And despite the recent introduction of speedy, fixed wireless services aimed to disrupt the wired, in-home broadband market, there were "no signs of wireless substitution (either fixed or mobile)," in Q4 2018, Moffett wrote.
But startup will need to finalize its satellite design, secure more funding and cut through the regulatory red tape before its vision to rival terrestrial fiber networks can (literally) get off the ground.
Tune in to Broadband World News Radio on February 14 at 11 a.m. ET / 8 a.m. PT / 4 p.m. UK when John Isch, Practice Director of the Network and Voice Center of Excellence at Orange Business Services, discusses use cases, ROI and misconceptions of software-defined wide-area networks, virtualization and cloud.
Consumers are buying millions of IoT devices, from smart thermostats and security systems to intelligent entertainment setups and furniture. Yet many of these devices remain isolated because home users are uncomfortable connecting them to each other – or even their WiFi. After all, their WiFi network was probably designed only to handle a few laptops, a gaming system and a couple of smartphones. Now, demand on the network is surging and even though you're delivering 100 Mbps to 1 Gbps, that doesn't necessarily mean the broadband power is in the right place or reaches every corner of a home.
Even if WiFi coverage is sufficient, typing is not on trend. Voice is far more natural, easier and faster. Using a TV keyboard is archaic when more and more households have access to cloud-based voice services, like Amazon Alexa. This webinar will explore how service providers can create a comfortable, truly smart home for consumers – simultaneously driving up margin and loyalty.