Is broadband a recession-proof product?

Between inflation, rising interest rates and turmoil in the stock market, it’s no wonder fears are rising that another recession might be around the corner. But broadband providers don’t seem all that concerned about how such a turn might impact the sector. Altice USA CEO Dexter Goei stated “we believe that this product, the broadband product, is pretty recession-proof…You’d probably give up your hot water, your electricity before giving up your broadband.” He added that while a recession might slow down step ups to higher service tiers, it likely wouldn’t slow down overall activity in the market. Fixed wireless access service provider Starry seems to hold a similar view. CEO Chet Kanojia argued broadband is now just as essential as food and shelter. There is some data to back up the idea that customers are increasingly giving broadband precedence among their other spending priorities. According to Recon Analytics’ Mobile Intender Service (RAMIS) and Home Broadband Service (RAHBIS) survey, internet ranks fifth overall in terms of bill importance. It trails only housing payments, utilities like power and gas, credit cards and health insurance. Broadband service was ranked even higher among households with annual income ranging from $10,000 to $24,999, coming in third behind housing and utilities.