Home broadband services are a $100 billion market in the US, and it is estimated that around eight in 10 households have home broadband internet access. While many consumers have long viewed home internet service as a necessity, COVID-19 has elevated its importance after nearly a year of staying at home, working and going to school remotely and connecting with friends and family through video chat. As consumers turned more attention to digital activities, streaming entertainment use has surged and more consumers are cutting paid TV packages in an effort to save money, lowering revenues for ISPs that bundle large TV packages with their home internet services.

• The impact of COVID-19 on consumer behavior and ISPs

• Shifts in the type of home internet and bundled services consumers have for their household

• Home internet service satisfaction levels and the factors driving satisfaction

• Consumer attitudes toward home internet service

For the purposes of this Report, Mintel has used the following definitions:

• Broadband refers to the FCC definition, which is high-speed internet access that is always on and faster than traditional dial-up access. Speed thresholds to qualify for broadband as determined by the FCC include 25 Mbps download speed and 3 Mbps upload speed.

• Bundled services refers to additional services often provided by ISPs; landline telephone connections, pay TV packages, home security systems and mobile phone plans are commonly bundled services discussed in the Report.

This Report builds on Mintel’s Pay TV & Bundled Communications – US, September 2019, Pay TV – US, November 2018, Content Consumption: TV and Movies – US, October 2017 and the August 2016 Report of the same title.

The home internet service provider market in the US consists primarily of large telecoms like Comcast (Xfinity), Charter Communications (Spectrum), Verizon and AT&T, with additional local and national telecommunication companies offering home internet services. Cable and fiber optic connections are wire-based services that provide the highest internet speeds on the market and provide the bulk of service for US consumers. Wireless services such as satellite internet and fixed wireless are also available for consumers and can offer home internet service in more remote areas of the country that have not installed the necessary infrastructure for wired services. These services are typically much more limited in internet speeds, however the development of 5G connectivity is increasing fixed wireless capabilities in delivering high-speed internet.

Mintel’s economic assumptions are based on CBO estimates released on February 1, 2021. The CBO’s previous forecast for US GDP to fall by 5.8% in 2020 was revised after a stronger second half of the year, and the updated estimate indicates negative 3.5% GDP for the year. The CBO forecast for GDP to grow by 4.6% in 2021 and unemployment to continue to fall to average 5.7% for the year do not take into consideration the impact of the $1.9 trillion economic relief package, which is expected to further boost growth.

The first COVID-19 case was confirmed in the US in January 2020. It was declared a global health pandemic and national emergency in early March 2020. Across the US, various stay-at-home orders were put in place in Spring 2020, and nonessential businesses and school districts closed or shifted to remote operations. The remainder of 2020 saw rolling orders, as states and local governments relaxed and reinforced guidelines according to the spread of the virus in each region.

Vaccine rollout began in December 2020. Based on current estimates of vaccine production and distribution, the US could reach herd immunity, with 70-85% of the population vaccinated, by late Summer to early Fall 2021. Mintel anticipates business operations in the US will remain in a state of flux through 2021 as the vaccine is widely administered.