Study: US net subs favour fibre SPs
January 26, 2024
Parks Associates’ new consumer study, Home Internet Evolution: 5G Competition and Value-Added Services, finds that fibre and mobile services score the highest regarding consumer value perceptions of their Internet service, especially on cost. Sixty-six per cent of subscribers with a fixed wireless access (FWA) plan from a mobile provider – also known as 5G or LTE home Internet service – consider their plans to be at a fair or good price, while 62 per cent report that it is easy to contact someone for customer service or technical support. Among fibre subscribers, 51 per cent feel they receive their service at a fair price, compared to just 35 per cent of cable subscribers.
Home Internet Evolution: 5G Competition and Value-Added Services, a consumer survey of 8,000 Internet households, addresses consumer perspectives on fibre and gigabit speeds impacting their choice of Internet service provider and service tier. It also identifies which value-added services resonate with end-users and their impact on satisfaction and retention.
“Consumer attitudes towards fibre Internet and MNO (mobile network operator) FWA are both highly positive, with more consumers confident in fibre than 5G home Internet,” advvises Kristen Hanich, Director of Research, Parks Associates. “Consumers widely perceive these Internet plans are of a higher quality than existing technologies, including cable. High net promoter scores (NPS) among current subscribers suggest that word-of-mouth is creating favourable perceptions, in addition to advertising and marketing campaigns, which is critical in this era where consumer value perceptions are driving behaviour.”
MNO FWA customers are largely urban households living in apartments, many with higher incomes and children. They have high needs for connectivity but frequently live in areas that lack traditional high-speed Internet access. While nearly 60 per cent of MNO FWA customers bundle together mobile and home Internet service, only 20 per cent consider this bundle a key factor when looking for an Internet service provider. They are more interested in a service that is easy to get up and running.
“Incumbent ISPs in previously uncompetitive markets are most at-risk from growing awareness of MNO FWA plans,” Hanich adds. “They must be prepared to face an increasingly competitive market as additional FWA capacity comes online.”