Monday, June 3, 2019

Big Boost for U.S. Mobile Speeds is Coming

Mobile internet access speeds in the United States in 2019 ranked about 30th globally, worse than the typical U.S. ranking for fixed internet access speeds. All that is likely to change in a big way, and fast, as 5G coverage spreads.

It is not just that 5G will provide an order of magnitude (higher in some cases) boost in speeds. On a comparative basis, the U.S. market is a first mover on 5G, so will reap the benefits while most other countries have not yet launched 5G.

Despite skepticism in some quarters, mobile 5G will start to become more attractive as an alternative to fixed connections, as well as supplying the foundation for 5G fixed wireless as well.

Many now believe fixed wireless could represent additional market share of perhaps 10 percent away from cabled network solutions (telco and cable).

Even before 5G fixed wireless, some 20 percent of U.S. households rely exclusively on mobile internet access. Depending on the structure of tariffs and service plans, it is conceivable that percentage could grow significantly.

It always is dangerous to rely on slow or ponderous measurement mechanisms when any process is changing rapidly, as is the case for U.S. fixed network internet access. Historically, the United States has ranked about 15th globally on measures of voice service adoption or internet access adoption.


Rankings for internet access speed have often shown lower rankings than 15th, globally. Fastmetrics ranked the the United States about 20th for fixed network speeds about the middle of 2018.

But speeds in the U.S. market are changing very rapidly, largely on the strength of cable TV fixed internet services. The latest Speedtest global comparison shows rapidly-increasing U.S. internet access speed, which improved about 36 percent in one year.

It seems always to be the last seven percent of households that lag average U.S. internet access speeds and availability.

If there are about 130 million U.S. housing locations, that implies the number of households not reached by cable networks is perhaps nine million locations.

Telco networks probably reach about 98 percent of housing locations. That does not mean seven percent of U.S. homes have no fixed network internet access, or that they have no ability to buy internet access.

What those numbers mean is that, altogether, 93 percent of homes have access to 25 Mbps fixed network service (the minimum definition of “broadband”), with nearly 100 percent access to 25 Mbps or 30 Mbps by satellite.

Most of the homes that cannot buy a fixed network “broadband” service, using the current definition, can buy service at lower speeds. It always is the last couple of percent of homes in the most-isolated areas that have issues with coverage or speeds.



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