When you think of cord cutting, you undoubtedly think of people giving up their subscriptions to pay TV in order to save money. But there’s new evidence that people are cutting the cord on something else as well – broadband internet, reports Media Life magazine.

The Media Life report, in part, stated:

“The finding comes in a new report from Ovum, a media and telecom research firm, which notes that several companies have seen more than one quarter of decline in broadband.

“It notes that most U.S. telecom providers have been losing landline or cable subscribers for years. But now that’s expanded to include broadband.

““Cord-cutting started in landlines and gave way to cord-cutting in pay TV in the U.S. We are now entering the realm of triple cord-cutting,” says Kristin Paulin, a senior analyst at Ovum.”

There are a number of thing playing into the broadband decline, stated the Media Life article:

“One is certainly the rise of mobile. There’s now a significant slice of the population that relies on their smartphones exclusively for their connectivity outside of work.

“They can skip the expense of broadband by getting an unlimited data plan and using it for all of their internet needs. The Pew Research Center says 13 percent of U.S. adults use smartphones only to get on the web, up from 8 percent three years ago.

“Too, the wide availability of wifi makes a broadband connection less necessary than in the past. The number of wifi hotspots quadrupled from 2011 to 2015, according to Informa, and there are more than 50 million hotspots worldwide.

“Finally, people want to save money. By eliminating a cable, broadband or landline subscription, or just chopping all three, a family can save hundreds or thousands of dollars each year.”

 

2 Responses

  1. Jenny Wilson

    Staying in the telecommunications industry especially now is a very tricky business. Where high-speed internet services paved the way for digital TV and VoIP phone services, we also now have online video streaming services in the competition. By the end of the day, people are always going to chose what suits their needs the best and in as little cost as possible. It is that time period were major corporations need to rethink their strategy and fortify their strengths and overcome their shortcomings in order to exist profitably within the industry.

    Reply

Leave a Reply

Your email address will not be published.