There is a wave of uncertainty rolling over the telecommunications industry right now and some service providers are already preparing for potential life without the Universal Service Fund.
The 9th annual broadband and video study from rural American consumers does offer a ray of hope for adding more value and subsequent revenue to your broadband pipe. Despite an emerging trend of unbundling, this study of 363 rural consumers who have a pay TV service reveals that 60% also receive their internet from the same provider. This data validates a strong consideration of having more than stand-alone internet when entering new markets, especially when there are competitors who offer both.
And Then There is The Revenue Factor
As you can see the average monthly revenue paid by rural consumers for pay TV and internet is $167, and jumps to $180 per month for the 55+ demographic. This is significant, especially for a growing number of companies who refuse to lose money on video.
Our latest data shows the average monthly revenue for the internet as a stand-alone service dropped from 2023-2024. Even though the internet has greater profit margins, will that continue to be the case with wireless home internet competition from Verizon and T-Mobile. On the LEO front, we have Starlink, and Amazon Kuiper waiting in the wings and both could stand to gain funding favor as a result of the recent elections.
The bottom line is this, when you right-price video for a profit and bundle it with broadband you are future-proofing your network to weather any regulatory or competitive storm that may come your way.
Find out more about adding other services to your broadband network with the December 7th free webcast, “Revenue Optimization for your Network – Best Practices”.
