Coronavirus breaks the telecom bundle

Consumers are adopting stand-alone broadband services at a much higher rate than just two years ago, and analysts predict that the economic downturn prompted by the COVID-19 outbreak will accelerate the trend. With a recession looming, consumers may look to cut pay TV service in favor of more robust standalone internet packages once they're free to leave their homes. The broadband boom driven by the pandemic is likely to continue even after the virus dies down.

After holding steady for five years, household adoption of stand-alone internet service rose to 42% in the third quarter of 2019, up from 34% in 2017, according to Parks Associates. The rise was largely driven by subscribers aged 18-24, who subscribe to stand-alone internet at a rate that is double that of older consumers. 45% of over-the-top video subscribers have an internet-only package, up from 39% in 2017. The average stand-alone internet subscriber pays $60 a month, a 36% increase since 2013.

Yes, but: Not all firms will have the ability to capitalize on the trend. Satellite companies like AT&T's DirecTV and Dish, which also provide pay TV services, do not have the same broadband strength to fall back on as their ISP counterparts like Verizon and Comcast.