Cable Now Controls 63% of U.S. Market for High-Speed Internet
The numbers aren’t getting any better for the telcos. Charter Communications and Comcast continue to take market share from the telco sector.
According to Leichtman Research Group, cable operators added over 1 million high-speed internet (HIS) subscribers and finished the quarter controlling 63.2% of the U.S. wireline broadband market, up from 61.5% in the first quarter of 2016. Charter had the biggest gain in the first quarter, adding 458,000 HSI customers, followed by Comcast (430,000). Frontier Communications’ heavy Fios losses (107,000 users) which is an accelerated pace compared to last year’s loss of 243,000 HIS subs.
“With the addition of nearly one million subscribers in the quarter, the top cable and Telco broadband providers in the US cumulatively now account for over 93.9 million subscribers in the US,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “In the first quarter of 2017, the number of broadband subscribers surpassed the number of pay-TV subscribers in the US.”
For the 12-month period ending March 31, telco operators lost nearly 727,000 HSI customers with subscribers fleeing DSL services. During the same period, cable operators added over 3.11 million broadband.