Saturday, January 2, 2016

Cable Broadband Subscribers Declining: Home Internet Access Via Cellular Data Packages Increasing

From The Wall Street Journal, "T-Mobile: Who Needs a Cable Company Anyway? Offer of free wireless data for video-streaming services could lead to more cord-cutting" by Miriam Gottfried:
But the [T-Mobile] model suggests a future in which more people could cut out cable providers entirely, opting to get the Internet and video wirelessly.

Any threat to cable from wireless broadband is still in its early days. There is evidence, though, of movement. Just two-thirds of U.S. adults have broadband service, down from 70% in 2013, according to a survey published in December by the Pew Research Center. Moreover, 13% of adults rely on their smartphone data package for Internet access at home versus 8% in 2013.

[Omitted Chart]

These changes are concentrated among lower-to-middle income households and parents of young children, Pew found. Still, that might not be the case forever.

Indeed, the day is drawing closer when wireless networks will rival wireline in terms of speed and reliability.

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