ACA study finds broadband competition in U.S. is thriving

A new study from ACA Connects, a trade group that represents small and medium-sized broadband providers, found that more than 90% of U.S. households have access to at least one broadband provider today and 74% of households will have access to at least two broadband providers by 2025. 

ACA said that it analyzed FCC deployment data and found that from 2014 to 2020 the percentage of U.S. households with access to at least one broadband provider offering at least 100 Mbps downstream and 20 Mbps upstream service and at least one provider offering 25 Mbps downstream and 3 Mbps upstream broadband services more than doubled from 32% to 84%.  

Further, the group said that this level of “robust” competition in the industry means that there is no need for additional regulations for broadband providers. Instead, the ACA believes the current “light touch” regulatory environment, where subsidies are provided for areas where the economics of delivering broadband service is too challenging, is working.

The ACA also said that its projection that 74% of households will have access to at least two broadband providers by 2025, is conservative. In fact, the organization said that if all the major telecom incumbents fulfill their goals of accelerated broadband deployments over the next five years, it estimates that 84% of all households will have access to at least two broadband providers offering 100 Mbps downstream and 20 Mbps upstream service by the end of 2025.

John Fletcher, an analyst with S&P Global, said that there has been a sizable increase in the number of regional wireless internet service providers (WISPs) over the last few years. In addition, with T-Mobile and Verizon now offering fixed wireless service to many parts of the country, it’s likely that many U.S. households are benefiting from having more broadband options.

The ACA further said that its analysis found that for households where multiple broadband providers are not available, many are served, or soon will be served, by a broadband company that receives deployment subsidies and therefore the government oversees the company’s rates and terms. The organization said that 7% of households fall into this category and it expects that percentage to grow as the government begins to distribute funds from its Broadband Equity Access and Deployment (BEAD) program.

The BEAD program designates $42.45 billion in funding to connecting underserved areas by funneling money through state grants.