Moffett: Cable broadband subscriber growth to slow in 2021

US broadband growth continued to surge through the third quarter of 2020, but "pull-forward" growth driven by the ongoing pandemic will likely lead to a slowdown in 2021, MoffettNathanson analyst Craig Moffett predicted in a new report. According to the report, the US broadband market finished Q3 2020 with a penetration rate of 84%. Thanks to US cable's continued strong showing, the 4.7% growth rate for the entire domestic broadband industry in Q3 2020 was the fastest in about a decade, Moffett noted. But where all of those subscribers are coming from (wireless-only households, satellite broadband or new household formation) during this crazy period is not crystal clear. Several operators, including Atlantic Broadband and Cable One, have been offering temporary low-cost broadband options during the pandemic, but that's likely still not the main driver. Moffett believes the rise in fixed broadband penetration probably came through a combination of all these doors to various degrees. "The pandemic hasn't meaningfully increased the availability of broadband, but for some, it likely has made it more affordable or more relevant," Moffett explained. "It is not unreasonable to argue that, in a market where penetration stands at 84%, any acceleration in achieving incremental penetration of what's left can be thought of as a pull-forward."