It’s no secret that many people have dropped their fixed line telephone services and opted for cellular-only in the last several years. Could a similar trend occur wherein a growing number of consumers cancel fixed broadband in their homes and use wireless or mobile data services alone? New research suggests there are indeed new developments in this area worth keeping an eye on.
Parks Associates predicts in its “360 View: Mobility & the App Economy” report that 10 percent of U.S. broadband households are likely to cancel their fixed broadband service over the next 12 months, and use wireless or mobile data services as a replacement. It also expects that the migration away from fixed line telephone services in favor of cellular will continue. The research firm reports that 8 percent of U.S. broadband households plan to cancel this service in the next 12 months. Currently, 51 percent of U.S. broadband households have fixed line phone service, according to Parks Associates estimates.
Some of the reasons that consumers may consider dropping fixed broadband are that the mobile data capabilities of smartphones continue to surge, and mobile carriers in the United States are reintroducing unlimited data plans, the research firm notes. It also points out that a growing number of value-added mobile services including T-Mobile’s zero-rated HD video streaming offer, AT&T’s zero-rated DirecTV Now service, Sprint’s Amazon Prime service, or Verizon’s Go90 video service, may have emboldened broadband cord cutters.
Younger consumers are more likely to go completely mobile, Parks notes, with its research indicating 15 percent of heads-of-household ages 25-34 are likely to cancel their fixed broadband service in the next year.
More information on the report is here.
