Thursday, May 30, 2013

Will Mobile and Fixed Internet Access Business See Substitution?

In 2012, perhaps one percent of U.S. households stopped paying for home Internet subscriptions and relied on wireless access instead, according to Leichtman Research Group. 

That small amount of wireless substitution in the Internet access market will not bother providers of mobile broadband service. 

Video cord cutting, though more prevalent, still amounts to only about a few percent of households.

Zero TV households number about five million, or about three percent of U.S. households.

Arguably, most "mobile broadband substitution" takes the form of users dropping their fixed wireless subscriptions and relying on free Wi-Fi and their mobile broadband plans. 

Some lighter users, who mostly use social networking apps and sites, might find the approach works. People who don't mind moving to places where there is public Wi-Fi might add some amount of watching video. But multi-user households and frequent video watchers will find mobile broadband substitution a difficult proposition.

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