According to Strategy Analytics, Comcast (NASDAQ:CMCSA) and Time Warner Cable (NYSE:TWC) led the growth in U.S. broadband subscriptions during the third quarter, adding a combined 552,000 new subscribers. Overall, cable operators in the United States added 804,000 subscribers. However, the total number of U.S. broadband subscribers only increased by 679,000 due to losses in DSL and slower growth in fiber subscriptions at AT&T (NYSE:T) and Verizon (NYSE:VZ). Over the past 12 months, Comcast and Time Warner Cable have accounted for 71% of the 3 million new broadband subscribers.
The research house says the top 19 tracked operators in the United States have seen strong growth in 2015, adding more than 2.1 million new subscribers through the third quarter. But in the third quarter itself, AT&T and Verizon faced challenges as AT&T lost 106,000 subscribers and Verizon added only 2,000.
In another positive note for the service providers, broadband average revenue per user (ARPU) continues on an upward trajectory. In the third quarter results, broadband ARPU was up between 2% and 7% across cable and telco providers. Operators are investing in capabilities to offer higher speed tiers, and customers are responding favorably.
"Cable operators continue to increase market share in U.S. broadband," wrote Jason Blackwell, director of the Service Provider Strategies service (SPS) at Strategy Analytics. "Over the past 12 months, Comcast has accounted for 42% of new subscribers among the operators that we track. Fiber growth is still strong, but the telco operators haven't been able to shake off the losses of DSL subscribers. In 2016, we expect to see a real battle in broadband, as cable operators begin to roll out DOCSIS 3.1 for even higher speed offers, placing additional pressure on telcos."
