Fiber and 5G are the Future, Says Parks Associates

  • Adoption of the internet at home accelerated during the pandemic when approximately 8M households signed up for home internet service.

  • Over the past decade, home internet adoption in the United States has grown steadily and is expected to reach 105 million US households by 2023.

  • While this growth is beginning to slow, the trend remains upward with higher demand for more bandwidth and faster speed, necessitating a transition from traditional DSL internet to fiber and 5G infrastructure.

Parks Associates estimates that over 105 million US households will have high-speed internet delivered to their home by 2023. Overall internet adoption – including mobile broadband-only households – will reach 119M.

Over the past decade, home internet adoption in the United States – here defined as internet subscription adoption to the home or individual, with faster than dial-up speeds – has grown steadily. Adoption of internet at home accelerated during the pandemic, when approximately 8M households signed up for home internet service.

“Home internet” refers to internet delivered over fiber, HFC, coaxial cable, copper wire, satellite, or fixed wireless but does not include cellular connections to single point devices such as smartphones, tablets, or Mi-Fi Hotspot devices. Consumers who receive internet service via a single point “mobile” device, but do not have home internet service are categorized as “mobile-only.”

While this growth is beginning to slow, the trend remains upward. Higher demand for more bandwidth and faster speed necessitates a transition from traditional DSL internet to fiber and 5G infrastructure.

"Households today are using broadband for both entertainment and practical needs," said Kristen Hanich, Parks Associates. "More and more data are consumed each year. Providers who are not investing in solutions to meet the needs of future customers will be quickly outpaced."  

Competition among companies within the home services category is intensifying as more players enter the market and facilitate fiber buildouts.

•      Comcast and Charter Spectrum, companies that have both experienced subscriber growth in the past few years for internet service, are now slowing considerably.

•      In the latter part of 2022, Brightspeed acquired Lumen Technologies’ territory in 20 states and has big plans to deploy fiber internet to at least 3 million households in the next few years.

Fiber internet and 5G fixed wireless continue to be growing markets. Traditional pay-TV and home phone services are similarly facing a decline. Penetration of home services such as traditional pay TV, home phone, and home security drops further in Q3 2022 as inflation persists. Household adoption of home internet and mobile internet services remain strong, emphasizing the high value that customers place on connectivity. As inflationary pressures continue to weigh heavily on consumer budgets, households are trimming out services not seen as essential. Mobile service, however, is consistently perceived as important.

Mobile providers such as T-Mobile, Verizon, and AT&T see high customer approval scores among service subscribers. This is coupled with a rise in household bundles of home internet and mobile service. Many households are finding value in smaller bundles and are looking to their mobile provider for that service.

This is an excerpt from Parks Associates Home Services Dashboard Q3 2022. The Home Services Dashboard visualizes the most important metrics informing the strategic decision making of companies providing communications services to the home. The Parks Associates ongoing research service includes regular updates for consumer adoption:

Executive Summary                                                                        

Industry Benchmarks                                                                              

  • Internet Adoption in US Households

  • Home Service Subscription

  • Adoption of Standalone vs. Bundled Home Internet Service

  • Adoption of Home Service Packages

  • Adoption of Mobile and Internet Bundles

  • ARPU of Total Home Services

  • ARPU of Standalone Home Services

  • ARPU of Home Bundled Services

  • ARPU of Most Common Home Service Packages

Home Service Provider NPS                                                       

  • Net Promotor Score by Sector – Trending (2019-2022)

  • Net Promotor Score of Home Service Providers

  • Net Promotor Score of Home Internet Providers’ Services

  • Net Promotor Score of Home Phone Providers’ Services

  • Net Promotor Score of Mobile Providers’ Services

  • Net Promotor Score of Traditional Pay-TV Providers’ Services

  •  Net Promotor Score of Home Security Service Providers

Broadband Close-Up                                                                    

  • Market Share of Top Ten Residential Home Internet Providers

  • Home Internet Access by Type

  • Home vs. Home Internet Adoption by Residency Area

  •  Mesh Network Adoption Among Network Router Owners: 2020-2022

For more information, please visit www.parksassociates.com.

Staff ReportsParks Associates, Fiber, 5G