Demand prolongs U.S. broadband boom through mid-2021

Rhea-AI Summary

According to a recent report from Kagan, a part of S&P Global Market Intelligence, U.S. broadband demand remains strong, with 945,000 new wireline subscribers added in Q2 2021. This figure, though lower than the previous year's boom, surpasses 2019 levels. Total broadband subscribers exceeded 109.2 million, marking a 4.3% annual increase. Cable providers contributed significantly, accounting for 96% of new broadband customers this year. Despite some losses in satellite broadband subscribers, the report indicates a shift towards fiber-to-the-home (FTTH) upgrades.

Positive

• Added 945,000 new broadband subscribers in Q2 2021, indicating strong demand.
• Total broadband subscribers surpassed 109.2 million, up 4.3% year-over-year.
• Cable accounted for 96% of broadband customer gains in the first half of 2021.

Negative

• Cable subscriber growth in H1 2021 decreased compared to pandemic boosts.
• Established satellite broadband providers lost 24,000 U.S. subscribers.

NEW YORK, Aug. 18, 2021 /PRNewswire/ -- U.S. broadband gains illustrated durable demand for wireline connections in the second quarter, allaying fears of a 2021 hangover, according to Kagan, a media research group within S&P Global Market Intelligence. While the 945,000 new broadband subs in second quarter 2021 fall short of the year-ago boom, the jump far exceeds the second-quarter 2019 figure that cable operators have been pointing to as a more likely template for current-year success.

The combined residential cable, telco and satellite broadband subscribers topped 109.2 million at the end of the second quarter, up 4.3% annually with nearly 4.5 million net adds year over year, according to Kagan's full industry estimates.

Consumer appetites pushed wireline broadband residential penetrations to more than 83%. Including satellite broadband services, residential penetration reached 84.5%

Additional takeaways from Kagan's Q2 2021 report:  

• Cable subscriber growth in the first half was down from the outsized gains of the pandemic-boosted demand for connectivity. But with 1.9 million residential and commercial net adds year-to-date, cable accounted for 96% of broadband customer gains across the U.S. cable, telco and satellite segments in the first six months of 2021.
• The surging enthusiasm for FTTH upgrades is boosting telco wireline broadband net adds, albeit at relative magnitudes. While the segment's residential net adds in the second quarter pale in comparison to cable's growth, it represents a dramatic improvement over the second quarter track record since 2016.
• Combined, the established satellite broadband providers lost 24,000 U.S. subscribers while Starlink begins to establish early momentum.

S&P Global Market Intelligence's Kagan research team provides in-depth coverage and deep analyses of the global technology, media and telecommunications sectors (TMT). This TMT research offering complements S&P Global Market Intelligence's broad universe of research sector coverage including energy, enterprise technology, financial institutions groups, leveraged loans, and metals & mining.

S&P Global Market Intelligence's opinions, quotes, and credit-related and other analyses are statements of opinion as of the date they are expressed and not statements of fact or recommendation to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security.

About S&P Global Market Intelligence
At S&P Global Market Intelligence, we understand the importance of accurate, deep and insightful information. We integrate financial and industry data, research and news into tools that help track performance, generate alpha, identify investment ideas, perform valuations and assess credit risk. Investment professionals, government agencies, corporations and universities around the world use this essential intelligence to make business and financial decisions with conviction.

S&P Global Market Intelligence is a division of S&P Global (NYSE: SPGI), the world's foremost provider of credit ratings, benchmarks and analytics in the global capital and commodity markets, offering ESG solutions, deep data and insights on critical business factors. S&P Global has been providing essential intelligence that unlocks opportunity, fosters growth and accelerates progress for more than 160 years. For more information, visit www.spglobal.com/marketintelligence.

Media Contact
Amanda Oey
S&P Global | Market Intelligence
Tel: 212-438-1904
amanda.oey@spglobal.com

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SOURCE S&P Global Market Intelligence

FAQ

What does the Kagan report from S&P Global indicate about broadband subscriber growth in Q2 2021?

The Kagan report reveals that 945,000 new wireline broadband subscribers were added in Q2 2021.

How many total broadband subscribers are there in the U.S. as of Q2 2021?

As of Q2 2021, total broadband subscribers in the U.S. exceeded 109.2 million.

What percentage of broadband customer gains in 2021 came from cable providers?

Cable providers accounted for 96% of broadband customer gains in the first half of 2021.

Are established satellite broadband providers gaining or losing subscribers?

Established satellite broadband providers lost 24,000 U.S. subscribers, indicating a decline.

What is the impact of FTTH upgrades on broadband subscribers?

FTTH upgrades are boosting net adds in telco wireline broadband, showing improved performance.