New research from analyst firm Parks Associates indicates that over 12 million US consumers have cancelled their home broadband service, with high cost cited as the most common reason.
The report, Adoption and Perception of Broadband, has found that there are more than 15 million households in the US that have only a mobile broadband service, which includes more than three million households that have never had a home internet subscription.
Kristen Hanich, senior analyst, Parks Associates, commented: “High cost is the most prominent issue driving households to cut the cord and go mobile only, although service-related issues, from slow speeds to poor customer experience, also contribute. Service providers can deploy a number of strategies, including increasing speed and delivering a device that improves Wi-Fi coverage, in order to protect their customer base.”
The report also found that smart Wi-Fi or mesh networking products that would improve Wi-Fi coverage are powerful incentives to staunch churn, as 75% of households likely to switch would stay with their current provider if offered these solutions. Currently 94% of all US broadband households use Wi-Fi networking at home, and more than half report problems with their internet experience.
As the pandemic continues, with 41% of US broadband households engaged in remote working or home schooling, user experience and the ability to deliver the necessary speeds are more critical for users.
Hanich added: “In September 2020, 9% of US broadband households had upgraded their home's broadband service in the previous 12 months, and the Covid-19 crisis was the main reason for 80% of those upgrades. Overall the NPS scores for all service providers have increased from 2019 to 2020. Good performance during the Covid-19 crisis has improved customers' opinion of their service providers, but there were dips throughout the year, indicating that providers need to continue to deliver on customer service and innovate in value-added offerings in order to grow and maintain their subscriber base.”