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Hardware delays threaten broadband market growth; expect ISPs to lean into value-added services.
Throughout 2020 and 2021, the US broadband market experienced a period of major growth with net additions at a historic multi-year high. Parks Associates estimates over 5.2M net residential subscriptions were added across 2020, and 3M in the first half of 2021 alone. However, the supply chain crisis has led to extreme lead times for networking equipment and caused network buildouts to slow across Q3 and Q4, with customer additions greatly slowing as a result. This will intensify across 2022, and ISPs will be challenged to continue their network expansion and upgrade plans. ISPs will be looking to value added services like smart Wi-Fi applications and advanced security to drive revenues.
Kristen Hanich Director, Research Parks Associates
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