Fixed internet service providers lose $10.5 billion in revenue to cord cutters

New research from Parks Associates found the number of broadband cord cutters in the US has risen over the past year, with operators missing out on billions in revenue as a result. The firm’s latest figures show there are now 13.9 million home internet cord cutters in the country, up from just over 12 million in March 2021. Last year, consumers cited high cost as the primary reason for dropping their fixed service. Parks Associates noted the average monthly cost of home internet, including both standalone and bundled service, is now $116. That compares to a standalone service cost of $64 and a fixed-mobile bundled cost of $128 per month as of June 2021. Beyond cost, around 50 percent of consumers said they prefer using the mobile internet or their mobile devices for broadband access as their reason for cutting the cord. Other reasons for cancellation included issues with a former service provider, failure to sign up for service following a recent move, a lack of access to home internet services and low internet usage. All told, Parks Associates estimated cord cutters represent a $10.5 billion missed revenue opportunity for US providers.