Tuesday, November 9, 2021

Home Broadband ARPU is One Thing, Prices Another

Nobody will be surprised that U.S. households are buying fewer service bundles featuring internet access and a linear TV subscription. According to Parks Associates, buyers of such bundles have decreased since 2017. 


It might be more significant that home broadband average revenue per account is rising, up to about $65 per account in the second quarter of 2021. 

source: Parks Associates 


In part, that increase in ARPU is the result of consumers upgrading service plans to faster tiers of service, notably at the fastest tier of service. 

source: Openvault 


In the second quarter of 2021 it also was clear that many fewer customers were buying service at speeds below 50 Mbps. Also, retail prices tend to creep up annually, so that makes a difference as well. 


source: Openvault 


It also can be argued that home broadband costs actually have fallen, adjusting for inflation. That might be especially true for the  plans most people buy. Also, home broadband prices have fallen while other consumer product prices have climbed. 

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