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August 15, 2012

Net Second Quarter Broadband Subscriber Additions Fewer than Previous Quarters

By Ashok Bindra, TMCnet Contributor

While broadband and high-speed are the buzz words when it comes to using the Internet, not all seem to care about the latest 3G/4G technologies. And that is evident from the latest data gathered by Leichtman Research Group, Inc. (LRG). Interestingly, the LRG study found that net broadband additions in the U.S. in the second quarter (Q2) were lot fewer than in any previous quarters.

In fact, the LRG group found that the 17 largest cable and telephone providers in the US,  representing about 93 percent of the market, acquired about 260,000 net additional high-speed Internet subscribers in 2Q 2012. According to LRG’s research, the net broadband additions in the quarter were the fewest of any quarter in the 11 years the firm has been tracking the industry.

Other broadband findings for this quarter indicate that overall, broadband additions in Q2 2012 amounted to 71 percent of those in Q2 2011 with top cable companies adding about 330,000 subscribers, representing 114 percent as many additions as in Q2 2011. Plus, as per this research, the top telephone companies lost about 70,000 subscribers as compared to a gain of about 80,000 in Q2 2011.

Likewise, AT&T and Verizon (News - Alert) added 669,000 fiber subscribers in the quarter (via U-verse and FiOS), while having a net loss of 763,000 DSL subscribers. The LRG study further indicates that both AT&T (News - Alert) and Verizon had fewer net broadband additions in Q2 2012 than in any previous quarter in the past 11 years. Also, the top cable broadband providers captured a 57 percent share of the overall market, with nearly 11 million more subscribers than the top telephone companies as compared to about nine million at this time a year ago.

In a statement, said Bruce Leichtman, president and principal analyst for Leichtman Research Group, "The seasonally weak second quarter again proved to be a slow quarter for industry growth. Net broadband additions in Q2 2012 were over one million less than in Q1 2011, and about 100,000 fewer than in last year's second quarter, making Q2 2012 the weakest on record."

“Yet, over the past year, the top broadband providers have added nearly three million subscribers, with cable providers accounting for 83 percent of the net additions," noted Leichtman.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2012, taking place Oct. 2-5, in Austin, TX.  Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.

Edited by Brooke Neuman
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