Skip to main content

Broadband SPs Witness a Dramatic Decline

North American broadband service providers (SPs) witnessed a dramatic decline in the number of net new subscriptions in the second quarter of 2008, according to a market study by Strategy Analytics.

While seasonality and market maturity explain some of the phenomenon, the broadband operator's recently reported second quarter results point to other factors.

According to John Lee, Analyst in the Strategy Analytics, "There is a fair amount of seasonality in broadband, so a dip in the second quarter is not altogether unexpected. However, the magnitude of this decline suggests that the current economic environment is hampering the ability of service providers to garner new customers."

Each of the top four U.S. service providers, Comcast, AT&T, Verizon and Time Warner Cable, saw its number of net new subscriptions fall precipitously in the second quarter, with the cable companies faring slightly better than the telcos.

"This is not a situation where existing consumers are dropping broadband en masse," said Ben Piper, Director of the Strategy Analytics. "Rather, the number of new subscribers is dwindling. In lean economic times, people are less inclined to assume an additional recurring monthly expense."

Expect U.S broadband service providers to lower prices, as they have done thus far every time when the market shows signs of reaching prolonged saturation.

Popular posts from this blog

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of

Global Pandemic Accelerates the Evolution of Transportation

Given the current trends across the globe, organizations that depend upon the continued growth of personal vehicle ownership will need to consider a plan-B scenario. While some companies will be able to adapt, others may find that their traditional business model has been totally disrupted. According to the latest worldwide market study by Juniper Research, Mobility-as-a-Service (MaaS) will displace over 2.2 billion private car journeys by 2025 -- that's rising from 471 million in 2021. Juniper believes that for MaaS to enjoy widespread adoption, subscription or on-the-go packages need to offer a strong combination of transport modes along with feasible infrastructure changes, high potential for data collection and low barriers to MaaS deployments. Mobility-as-a-Service Market Development The concept of MaaS involves the provision of multi-modal end-to-end travel services through a single platform by which users can determine the best route and price according to real-time traffic