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American telcos see opportunity from online learning as COVID-19 extends school closures

Strategic Highlights
Published: 2020-05-01

As stay-at-home protocols in light of the COVID-19 outbreak alter the lifestyles of most American households, InfoCom observed an increase in promotions to targeted fixed broadband offers (e.g. K-12, college students) considering the increasing shift towards online learning. In particular, Mediacom adjusted its low-cost "C2C (Connect2Compete)" Internet option exclusive for households with at least one K-12 student resident by increasing the speeds to 25 Mbit/s and offering it for free on the first three months, then USD 9.95/month (free installation and modem). Spectrum likewise launched its "Remote Education Credit" scheme that targets households with a Pre-K to 12, college, or teacher resident with up to 60-day credit line on its WiFi or high-speed Internet services (up to 100 Mbit/s). Similarly, Altice came out with its "Altice Advantage 30 Mbit/s" broadband solution dedicated to households with the same customer profile, while Comcast upgraded its triple-play Xfinity offer by introducing "Xfinity Education Destination" that contains several educational collections.

Partly in light of these schemes, InfoCom observed a 4.4% YoY growth in the US's total fixed broadband subscriptions in 1Q20, with both Spectrum and Comcast recording the highest growth rates at around 6% YoY and 5% YoY, respectively. Indeed, despite the economic repercussions of COVID-19, telcos managed to see opportunity from the requirements of online learning, especially that the pandemic may continue to extend school and university closures for several weeks further.

The US is part of InfoCom's Rest of World* Quarterly Fixed Broadband report wherein the country's subscriptions comprise around 16% of the regional total connections. As per the said report, there were nearly 685m total fixed broadband subscriptions in the RoW region as of end-1Q20.

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Published: 2020-05-01





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