U.S. Gigabit Take Rates Pass 5% for First Time

The percentage of U.S. fixed network broadband subscribers buying gigabit-speed connections surpassed five percent for the first time in the third quarter of 2020, reaching 5.6 percent, according to Openvault. That represents an increase of 124 percent from the third quarter of 2019, when take rates for gigabit services were 2.5 percent.

Gigabit service take rates reached 4.9 percent in the second quarter of 2020, says Openvault. Compare that to availability of gigabit services, which reach at least 80 percent of U.S. homes, counting only cable TV service provider facilities.

source: Openvault 

On the other hand, buyers of service at 10 Mbps and below also increased by 41 percent,  from 4.1 percent to 5.8 percent, quarter over quarter, Openvault says. “Growth at the lower end tier may be pointing to subscribers looking to save money with lower end, lower cost broadband tiers,” Openvault says.

Openvault says the “average” U.S. household (no idea whether this is median or mean) uses 384 GB per month, with average speeds downstream of 170 Mbps, upstream of 13 Mbps. 

source: Openvault

Half of all customers buy services providing downstream speeds between 100 Mbps and 400 Mbps. Nearly 30 percent of U.S. customers buy internet access at speeds ranging from 20 Mbps to 75 Mbps.

So it remains fair to say that there is a big difference between speeds consumers can buy, and speeds they actually do buy. Supply is one matter; demand another.