Study: Wireless 5G threat to traditional ISPs
December 6, 2023
Research firm Horowitz has released the findings from State of Media, Entertainment, and Tech: Disruptions 2023, which looks at US consumer attitudes towards and adoption of new disruptive technologies, including 5G wireless home Internet.
5G wireless home Internet has become available in more and more markets across the United States in the past two years, and with the aggressive deployment of the service, awareness is growing. One in four (23 per cent) consumers surveyed who do not have the service say they “know a lot” about it, with awareness highest among younger and urban consumers.
And satisfaction with 5G wireless home Internet is high. The Horowitz study finds that about two in three subscribers (67 per cent) of the service – offered by mobile providers such as T-Mobile and Verizon in their 5G coverage areas – say that their Wi-Fi covers all the areas of their homes better than traditional broadband. In comparison, less than one in 10 (7 per cent) consumers with 5G agree that traditional broadband is better, while an additional two in 10 feel that 5G service is about the same as broadband. It also gets higher ratings than traditional ISPs for “value for the money”.
Though penetration of 5G wireless home Internet across the United States overall is low — at 3 per cent, according to the Horowitz study — penetration is much higher in markets where the service is actually available. As mobile providers expand their 5G home Internet coverage areas, consumers are bullish for these services. Half (49 per cent) of TV content viewers surveyed by Horowitz who do not have 5G wireless home Internet service say that they are likely or very likely to consider subscribing when it becomes available in their area.
“5G wireless home Internet is definitely a competitive threat to traditional fixed-line broadband providers as consumers look to trim costs for reliable Internet, which is now an essential utility,” notes Adriana Waterston, EVP and Insights and Strategy Lead for Horowitz Research. “The novelty of being able to try out a new, alternative provider, combined with the trust people already have in mobile brands like Verizon and T-Mobile, are forcing traditional ISPs into a defensive position. This competitive environment will be a win for consumers. We anticipate this will drive Internet prices down and quality up while all providers focus on delivering the most reliable home Internet service for the best value in order to attract and retain customers.”