Skip to main content

U.S. Broadband Consumer Spending Forecast

According to Yankee Group research, as large U.S. telcos start to deploy television services, following on the heels of cable telephony deployments, the market for service providers will enter a new phase of competition. Telcos face line losses driven by wireless substitution, cable telephony and internet-based VoIP providers.

Similarly, cable operators are competing in a mature pay-TV market without significant potential for new growth, while satellite attacks their existing subscriber base. Even satellite operators have seen a slowdown in net new subscriber additions in the last few quarters.

As traditional voice and traditional cable providers encroach on each other�s territory, developing an effective bundling strategy has become more critical. When consumers adopt multiple products from the same provider, the service provider yields several benefits, including an additional revenue stream, reduced churn and a better ability to price their product competitively. As consumer awareness and service providers� focus increases, bundle momentum will grow.

In January 2006, Yankee Group began an assessment of the opportunity market for broadband service providers. For the purpose of the study, they defined a broadband service provider as a company delivering high-speed data (HSD) service, local telephone service or subscription television. The study took an in-depth look at the effect of the bundle as well as shifts in churn metrics and traditional service adoption dynamics.

Based on this study, Yankee Group estimates the broadband service spending of 32 million to 35 million households will be in play every year for the next 3 years. The average spending over the subscription lifetime of each of these households will be between $3,854 and $4,481. At the same time, the revenue opportunity these household service decisions represent will grow from $137.5 billion in 2006 to $145.3 billion in 2009.

Popular posts from this blog

How WLAN Transforms Industrial Automation

The industrial sector is on the eve of a wireless transformation, driven by an urgent demand for greater network capacity, reliability, and deterministic performance. Historically, manufacturers and mission-critical operations have relied on wired networks — favoring their predictability — because spectrum congestion in legacy 2.4GHz and 5GHz bands limited confidence in wireless for operational technology (OT) environments. However, with the introduction and rapid adoption of the 6GHz spectrum, compounded by significant advances in Wi-Fi standards, industrial facilities are now poised to embrace wireless LANs as the backbone for automation and digital innovation. Industrial WLAN Market Development Recent research from ABI Research forecasts that over 70 percent of industrial-grade wireless LAN access points (WLAN APs) shipped in 2030 will support the 6GHz band. This is a leap from 2 percent in 2023, highlighting a rapid and profound technological shift. The market for ruggedized indust...