Home Internet Evolution: 5G Competition and Value-Added Services

PUBLISHED: December 29, 2023

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Description

SYNOPSIS:

Competition in the home broadband market is evolving. Many internet service providers are turning to fiber as their next-generation last mile solution of choice, enabling gigabit speeds and greater service reliability. At the same time, 5G and LTE fixed wireless services have taken a substantial share of the US residential market since first emerging in 2021, both connecting the unconnected and taking share from DSL and legacy satellite subscribers. Value-added services are a key area of differentiation for ISPs, allowing them to better attract and retain subscribers while generating new revenues.

SAMPLE VIEW

This study draws from Parks Associates Q3 2023 survey of 8,000+ US internet households. The survey is demographically representative of US internet households, with quotas for age, income, and gender. Some questions are shown to a subgroup of ~4,000 respondents, which are also demographically balanced to be representative of US internet households.

Key questions addressed:

1. How are consumer perspectives on fiber and gigabit speeds impacting their choice of internet service provider and service tier?

2. What markets are being impacted by 5G fixed wireless service, and what are the characteristics of service adopters?

3. Which value-added services resonate with end-users, and what is their impact on satisfaction and retention?

4. How do new value-added services compare to traditional service bundles?

5. What is the impact of and consumer demand for managed Wi-Fi service hardware, including mesh networking routers and nodes?

ANALYST INSIGHT:

"Competitive pressure in residential broadband is continuing to grow as access to affordable ultra high-speed internet plans increases nationwide. Customers are growing increasingly dissatisfied with existing plans." - Kristen Hanich, Director of Research, Parks Associates.

Executive Summary

Net Promoter Score of Home Internet Service by Internet Access Method
Agreement With Statements Towards Broadband Service by Current Provider
Adoption of MNO FWA Service
Top 6 Services Bundled With Home Internet
Impact of Bundled Services on Net Promoter Score of Home Internet Provider
Home Internet Service ARPU for Traditional TV/Internet Bundles

Broadband Usage Trends

Residential Internet Provider Landscape: Top Players
Market Share of Top Ten Residential Home Internet Providers
Internet Access Method Among Home Internet Households (Consumer Survey Data)
Estimated Adoption of Mobile Network Fixed Wireless Access (5G & LTE) Among US Internet Households
Internet Service Payment Method by Type of Home
Download Speed of Home Broadband Service
Upload Speed of Home Internet Service
Home Internet Service ARPU by Download Speed
Home Internet Service ARPU by Download Speed - Standalone Broadband Subscribers

Fiber, 5G, and Gigabit Service

Net Promoter Score of Home Internet Service by Internet Access Methods
Attitudes Toward Fiber or 5G Internet Service
Concept Testing: Appeal of 5G Home Internet
Net Promoter Score of Home Internet Service by Download Speed
Barriers to 5G Home Internet Adoption: Why Consumers Don't Find It Appealing
Top Factors Considered When Switching Providers
Perceptions of Current Home Internet Service
Agreement With Statements Towards Broadband Service by Current Provider Type

Home Internet Subscriber Profiles

Adoption of Gigabit Service Among Groups
What Gigabit Subscribers Look For In an ISP
Adoption of Fiber Service
What Fiber Subscribers Look For In an ISP
Adoption of MNO FWA Service
What MNO FWA Subscribers Look For In an ISP
Adoption of Satellite Service
What Satellite Subscribers Look For In an ISP
High Spend Subscribers
What High-Spend Subscribers Look For In an ISP
Low Spend Subscribers
What Low-Spend Subscribers Look For In an ISP

Adoption of Value-Added Services

Services Bundled With Home Internet
Bundled Service Adoption Among Home Internet Households
Traditional Home Internet Service Bundles
Impact of Bundled Services on Net Promoter Score of Home Internet Provider
Impact of Service Type
Perceived Value of ISP-Provided Services
Adoption of Value-Added Services by Network Type Among Cable Subscribers
Adoption of Value-Added Services by Network Type Among Fiber Subscribers
Adoption of Value-Added Services by Network Type Among Trad. FWA Subscribers
Adoption of Value-Added Services by Network Type Among MNO FWA Subscribers
Adoption of Value-Added Services by Network Type Among DSL Subscribers
Adoption of Value-Added Services by Network Type Among Satellite Subscribers
Impact of Bundled Services on Cable Internet Provider NPS
Impact of Bundle Combinations on Cable Internet Provider NPS
Bundled Service Adoption by Internet Plan Type
Bundled VAS Adoption by Network Type - Paid Services
Bundled VAS Adoption by Network Type - Free Services
Bundled Service Adoption by Speed Tier - Paid Value-Added Services
Bundled Service Adoption by Speed Tier - Free Value-Added Services

Customer Switching And Expectations

Experience Looking for New Internet Provider: Ease Vs. Difficulty In...
Difficulties Finding Current Internet Service Provider
Attitudes Toward Broadband Service
Attitudes Towards Broadband Service by Current Provider Type

Customer Spending And ARPU

Internet Service ARPU - Bundle Types
Home Internet Service ARPU for Traditional TV/Internet Bundles
Home Internet Service ARPU for Traditional Non-TV Bundles
Internet Service ARPU for Traditional Bundles Including Value-Added Services
Internet Service ARPU for VAS-Only Bundles

Home Networking

Adoption of Router by Source: 2021-2023
Home Networking Product Purchasing (2018-2023)
Router Purchase Channel
Network Extender Purchase Channel
Brand of Home Network Router Purchased from Internet or Cable TV Provider in Past 6 Months