What is happening
T-Mobile describes how fixed wireless access, particularly its 5G home Internet, is disrupting the broadband market.
Why is it important?
ISPs are consistently one of the industries that US consumers complain about the most. Increasing competition and more options mean better choices for you.
On Wednesday, T-Mobile released a new study outlining its progress T-Mobile Home Internet with consumers, but also speaks to greater influence 5G fixed wireless (including the competitor Verizon 5G Home Internet) to reach more people in the US.
Based on its own data and information from OpenVault and Leichtman Research, T-Mobile said its home Internet service has already amassed more than 2 million customers. In the last year, 78% of the 3.28 million broadband network additions in the US are owned T-Mobile and Verizon.
It’s not shocking that customers will go for the newer versions. We noted in the summer that when The American Customer Satisfaction Index has released its 2022 report on ISPsthe industry has fallen last across all sectors in the US, with ISPs falling even below gas stations and social networks.
Poor customer satisfaction is a big driver of T-Mobile’s aggressive customer courting. One of its tags is “A Little Bit of the Big Internet.” But T-Mobile also asked its customers for specific reasons why they switched to 5G Internet. Over 58% cited lower price as the main reason, while 41% liked that there no annual contractual obligation. Perhaps most interestingly, more than a third of its customers said that simply having a new option was the main driver in their decision to switch.
All this coming in less than a month Consumer Reports has released a year-long study of broadband costs. The conclusion was that more competition is needed to give US consumers adequate choice and options for Internet access. Now, the arrival of this T-Mobile study essentially drives home.
“Fixed wireless is disrupting the historically fractured broadband industry by offering choice and competition when consumers need it most,” said Mike Katz, T-Mobile’s chief marketing officer.
T-Mobile’s report also highlights the expectation that 5G fixed wireless consumption will continue to expand, with T-Mobile and Verizon expected to add between 11 and 13 million customers by 2025.