Big telecom's broadband shift: are consumers really winning?

For years, cable companies and traditional telecom firms held a tight grip on the broadband market, leaving consumers with limited choices and often, inflated prices. But a surprising force is now disrupting that established order: the very wireless carriers – AT&T, T-Mobile, and Verizon – that have faced criticism for their dominance in the mobile space. Their aggressive push into Fixed Wireless Access (FWA) is reshaping the broadband landscape, and not necessarily in the way you might expect.

The rise of 5g internet and a new contender

Jeff Moore, Principal at Wave7 Research, points out that while cable companies still command a significant 59% of the broadband market and telecom firms hold 27%, FWA is rapidly gaining ground. 5G internet currently accounts for 14% of the market, and that figure is climbing at an impressive rate. This isn't just about faster downloads; it represents a fundamental shift in how internet access is delivered, bypassing the need for extensive cable infrastructure.

T-Mobile is leading this charge, boasting over nine million FWA customers and adding roughly 30,000 new subscribers each quarter. Verizon isn't far behind, reaching 5.7 million customers at the end of 2023, and AT&T has amassed 2.3 million FWA subscribers in the last quarter. All three are leveraging their prepaid brands – Metro by T-Mobile, Mint Mobile, and their respective prepaid offerings – to expand their reach and capture a wider customer base.

But the disruption doesn't stop there. Starlink, with its global network and estimated three million US subscribers, presents a compelling alternative, particularly in areas underserved by traditional providers. The satellite internet company’s growth isn’t constrained by geography, offering connectivity where fiber and cable simply aren't feasible. Adding another layer to this evolving ecosystem are the roughly 2,000 Wireless Internet Service Providers (WISPs), collectively serving nearly nine million customers, primarily in rural communities.

More options, but at what cost?

The immediate impact is clear: consumers now have more choices, potentially lower rates, and broader availability of high-speed broadband. The plug-and-play nature of many of these new services also eliminates the frustrating wait for installation teams. However, a critical question lingers: is this a genuine win for consumers, or simply a transfer of power from cable companies to the Big Three carriers? The specter of a consolidated market, where a few powerful players control both wireless and broadband access, is a legitimate concern. The increased competition is welcome, but the long-term implications for pricing and innovation remain to be seen.

The shift is undeniable. The broadband landscape is no longer a duopoly. But whether this newfound competition truly benefits the average consumer, or merely reshapes the power dynamics within the telecommunications industry, is a question that will likely define the next chapter in the ongoing evolution of internet access.