US vs. EU Broadband Trends 2012 – 2020
KEY FINDINGS............................................................................................................................................................................................1 US VS. EU BROADBAND DEPLOYMENT :: Coverage
Households Covered with Fixed Broadband at Any Speed.......................................................................... 2 Households Covered with Fixed Broadband at High Speed........................................................................3 Households Covered with Fixed Broadband ≥100 Mbps................................................................................4 Households with Two or More Facilities-Based Competing Providers................................................ 5 Households with Two or More Wired Facilities-Based Competing Providers................................ 6 US VS. EU BROADBAND ADOPTION :: Take-Up
Share of Households Covered with Fixed Broadband Subscription at Any Speed......................7 Share of Households Covered with Fixed Broadband Subscription at High Speed.................. 8 Share of Households Covered with Fixed Broadband Subscription ≥100 Mbps............................9 Share of Households with Broadband Subscriptions at Three Speed Intervals........................10 Why is the US Ahead?............................................................................................................................................................11
USTELECOM PARTNER | Arthur Menko, BPI-Telcodata
KEY FINDINGS The US continues to handily lead the EU on three critical connectivity metrics: consumer broadband infrastructure deployment, broadband adoption and facilities-based competition. • Deployment: US leads by 11 percentage points ≥30 Mbps; +25 pp ≥100 Mbps • Adoption: US leads by 10 pp ≥25 Mbps; +21 pp ≥100 Mbps • Competition: US benefits from nearly twice the fixed facilities-based competition of the EU overall; when comparing rural areas, the US lead extends to 7x. NEW IN 2020: US rural deployment now leads overall EU broadband deployment, despite the added costs and challenges associated with rural deployment • Deployment ≥30 Mbps: US rural at 91%; EU overall at 87%; EU rural at 60% • The US infrastructure advantage is most significant when comparing rural areas, despite the EU definition of “rural” including more population-dense areas (which allows costs to be spread across a much larger customer base). NEW IN 2020: US extends its lead in consumer broadband adoption at any speed, and a majority of Americans now have subscriptions ≥ 100 Mbps. • US consumer broadband adoption lead grows by 6 pp YOY - 2019: US lead +11 pp; 2020: US lead +15 pp • Both US and EU see healthy growth in ≥100 Mbps subscriptions - 55% of connected US households and 34% in EU had ≥100 Mbps subs in 2020. - YOY increases of 7 pp and 6 pp, respectively US lead on consumer adoption likely fueled by US broadband affordability. US broadband prices are holding steady—and even declining for millions of Americans—despite rising costs for most other essential goods and services. US benefits from a 3:1 advantage in per household broadband capex. This can be attributed to a US policy framework that encourages investment in facilities-based competition rather than heavy government regulation of services.
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US VS. EU BROADBAND DEPLOYMENT :: COVERAGE
HOUSEHOLDS COVERED WITH FIXED BROADBAND AT ANY SPEED US & EU in All Areas and Rural Only KEY TAKEAWAYS The US leads the EU in fixed broadband coverage at any speed. Rural coverage in the US now rivals all EU coverage— despite the fact that rural areas are more costly to serve. The US rural edge is substantial, despite the more restrictive US definition of rural. Any Speed is any fixed broadband speed>200 Kbps.
EU ALL AREAS
US ALL AREAS
100%
95%
90%
US RURAL
98%
98%
98%
97%
96%
95%
95%
EU RURAL
96%
99% 97%
99% 97%
95%
94%
93%
92%
92%
91%
96%
98%
99% 97%
95%
80%
75%
83%
2012
84%
84%
2013
2014
85%
2015
86%
2016
86%
2017
2018
2019
The EU defines rural areas as ≤ 263 people per square mile. In contrast US rural areas on average only 17.4 people per square mile. A majority (57% ) of the EU’s rural blocks would be considered non-rural in the US.
US VS . EU BROADBAND TRENDS 2012 – 201 9
90%
87%
SOURCES: FCC, NTIA AND EC’S DESI DATA
2
99% 98%
96%
90% 85%
97%
2020
COVERAGE :: US VS. EU BROADBAND DEPLOYMENT
HOUSEHOLDS COVERED WITH FIXED BROADBAND AT HIGH SPEED US & EU in All Areas and Rural Only EU ALL AREAS
US ALL AREAS
EU RURAL
US RURAL
KEY TAKEAWAYS
100% 90% 80% 70% 60% 50%
89%
55% 48%
40%
87%
91%
60%
45%
12% 2012
19%
24%
2013
2014
US rural high-speed coverage now exceeds all EU highspeed coverage. US lead in 2020: • 11 percentage points in all areas
52%
• 31 pp in rural areas
36%
20%
0%
59%
48%
30%
10%
98%
79%
74%
70%
66%
60%
83%
80%
77%
72%
67%
63%
56%
54%
89%
84%
82%
95%
94%
93%
91%
The US deployment lead grows when considering only high-speed offerings.
27%
2015
2016
2017
2018
2019
2020
SOURCES: FCC, NTIA AND EC’S DESI DATA
US speeds: ≥ 25/3 (2012-14) and 30 Mbps (2015-2020); EU speeds: ≥ 30 Mbps down and any speed up (known as Next Generation Access).
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US VS. EU BROADBAND DEPLOYMENT :: COVERAGE
HOUSEHOLDS COVERED WITH FIXED BROADBAND ≥100 MBPS US & EU in All Areas KEY TAKEAWAYS The higher the speed, the more the US pulls ahead in terms of the broadband services available to consumers. The US lead extends to 25 pp for ≥100 Mbps in 2019 (most recent available EU data). US coverage continues to grow in 2020.
EU ALL AREAS
US ALL AREAS
100%
92%
90%
90% 80% 75% 60% 50% 40%
40%
54%
53%
52% 44%
46%
61% 49%
63% 55%
61%
67%
30% 20% 10% 0%
2013
2014
SOURCES: FCC, NTIA AND EC’S DESI DATA
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93%
US VS . EU BROADBAND TRENDS 2012 – 201 9
2015
2016
2017
2018
2019
2020
COVERAGE :: US VS. EU BROADBAND DEPLOYMENT
HOUSEHOLDS WITH TWO OR MORE FACILITIES-BASED COMPETING PROVIDERS US & EU in All Areas and Rural Only EU ALL AREAS
US ALL AREAS
EU RURAL
US RURAL
100% 90%
95%
94%
91%
91%
90%
90%
KEY TAKEAWAYS
80%
40%
70%
70%
68%
66%
60% 50%
83%
78%
70%
43%
43%
44%
45%
45%
45%
7%
8%
9%
11%
11%
11%
30% 20% 10% 0%
2015
2016
2017
2018
2019
There is over 2x more facilitiesbased competition in the US than in the EU. The US lead grows to more than 7X when comparing rural areas. Indeed, US rural areas benefit from nearly twice as much facilitiesbased competition as all EU areas.
2020
SOURCES: FCC, NTIA AND EC’S DESI DATA
US: Two or more fixed providers—any technology, including fixed wireless. | EU: A cable and traditional telecom provider.
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US VS. EU BROADBAND DEPLOYMENT :: COVERAGE
HOUSEHOLDS WITH TWO OR MORE WIRED FACILITIES-BASED COMPETING PROVIDERS US & EU in All Areas and Rural Only KEY TAKEAWAYS Even if wireless ISPs (WISPs) are removed from the comparison, the US lead on facilitiesbased competition remains nearly 2X the EU in all areas. Even with this more conservative tally, the US lead remains greater than 5X when comparing rural areas.
EU ALL AREAS
US ALL AREAS
EU RURAL
100% 90%
84%
85%
86%
86%
87%
87%
49%
50%
51%
53%
55%
80% 70% 60% 50% 40%
49% 43%
43%
44%
45%
45%
45%
7%
8%
9%
11%
11%
11%
30% 20% 10% 0%
2015
2016
SOURCES: FCC, NTIA AND EC’S DESI DATA
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US RURAL
US VS . EU BROADBAND TRENDS 2012 – 201 9
2017
2018
2019
2020
TAKE-UP :: US VS. EU BROADBAND ADOPTION
SHARE OF HOUSEHOLDS WITH FIXED BROADBAND SUBSCRIPTION AT ANY SPEED EU
US
KEY TAKEAWAYS
100%
65%
67%
68%
70%
2016
77%
2015
75%
2014
74%
2013
60%
73%
72%
2012
70%
79%
2020
76%
84%
2019
72%
75%
82%
2018
80%
86%
82%
2017
90%
92%
50%
Not only do more Americans have access to high-speed broadband, but significantly more Americans have adopted service in their homes—with US take-up rates 15 percentage points ahead of EU rates.
40% 30% 20% 10% 0%
SOURCES: FCC, NTIA AND EC’S DESI DATA
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US VS. EU BROADBAND ADOPTION :: TAKE-UP
SHARE OF HOUSEHOLDS WITH FIXED BROADBAND SUBSCRIPTION AT HIGH SPEED EU
KEY TAKEAWAYS US residential takeup of high-speed broadband service is 10 percentage points greater than the EU.
US
77%
80%
69%
70%
64%
60%
57% 44%
40%
10%
53% 44%
35%
30% 20%
60%
50%
50%
36%
26% 13%
18%
67%
29% 22%
10%
SOURCES: FCC, NTIA AND EC’S DESI DATA
EU speeds: ≥ 30 Mbps. US speeds: ≥ 25/3
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US VS . EU BROADBAND TRENDS 2012 – 201 9
2020
2019
2018
2017
2016
2015
2014
2013
2012
0%
TAKE-UP :: US VS. EU BROADBAND ADOPTION
SHARE OF HOUSEHOLDS WITH FIXED BROADBAND SUBSCRIPTION AT ≥ 100 MBPS EU
US
KEY TAKEAWAYS
60%
55% 48
50%
42% 40%
At the fastest speeds, the US has a 21 percentage point lead over the EU on broadband take-up among consumers.
33% 34%
30%
28%
20% 20%
21%
13% 8%
2020
2019
2018
2017
.5%
15%
8% 2016
.1%
5% 2014
2012
0%
3% 2013
2%
12%
2015
10%
SOURCES: FCC, NTIA AND EC’S DESI DATA
9
US VS. EU BROADBAND ADOPTION :: TAKE-UP
SHARE OF HOUSEHOLDS WITH BROADBAND SUBSCRIPTIONS AT 3 SPEED INTERVALS < 25 MBPS
≥ 25 MBPS & < 100 MBPS
≥ 100 MBPS
KEY TAKEAWAYS More American consumers are adopting broadband overall, and far more are choosing the highest speed service offerings relative to EU consumers.
20%
10%
10%
0%
0%
SOURCES: FCC, NTIA AND EC’S DESI DATA
10
US VS . EU BROADBAND TRENDS 2012 – 201 9
2020
20%
2019
30%
2018
30%
2017
40%
2016
40%
2015
50%
2014
50%
2020
60%
2019
70%
60%
2018
70%
2017
80%
2016
80%
2015
90%
2014
90%
2013
100%
2012
100%
2013
EU
2012
US
WHY IS THE US AHEAD?
WHY IS THE US AHEAD? TELECOM INFRASTRUCTURE INVESTMENT 2012 – 2018 EU
US
KEY TAKEAWAYS INVESTMENT
CUSTOMER BASE
2012-2018 CUM
# OF HOUSEHOLDS
PER HOUSEHOLD
AVG ANNUAL INVESTMENT
US $708
US $4,955
US $616B
Broadband companies invest far more in the US as a whole… US +75% (CUM) …Despite a far smaller customer base
EU $353B EU 219M
US 124M
EU $1,610
EU $230
SOURCES: FCC, NTIA AND EC’S DESI DATA
US -43% (# of households vs. EU) …investing far more per household US +208% (CUM) …every year US +$478 household (Avg Annual Investment)
Denominated in 2018 US dollars. All figures are 2012-2018 CUM. Investment figures include residential, business and mobile services.
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