Fastest Internet service providers in the US
In the previous part of this series, we learned about AT&T’s (T) intentions for the expansion of its GigaPower service. The fiber-based service can provide maximum Internet speeds of 1 Gbps (gigabits per second), subject to conditions.
At the end of 1Q16, the top four US Internet players by subscribers were Comcast (CMCSA), AT&T, Time Warner Cable (TWC), and Verizon (VZ). Let’s look at the Internet speed rankings of these players among the fastest Internet service providers in the US.
Let’s look at Netflix ISP Speed Index for the US for April 2016 as a proxy for Internet speeds of these players. In this index, Netflix takes into account its users’ primetime speeds.
As shown in the above chart, among the large Internet service providers (or ISP), Verizon FiOS was the fastest in this index. BrightHouse, Cox, and Cablevision (CVC) Optimum followed FiOS in second, third, and fourth places. Charter Communications (CHTR), Comcast, and Time Warner Cable captured fifth, sixth, and seventh place, respectively, in this index. Meanwhile, AT&T U-verse ranked in tenth place in this Internet speed index.
DSL services of the top Internet service providers in the US
AT&T DSL (digital subscriber line) took 12th place in the Netflix ISP Speed Index for the US for April 2016. The DSL services of Windstream (WIN), Verizon (VZ), and CenturyLink (CTL) followed AT&T DSL in terms of Internet speeds for the same period.
For a diversified exposure to select telecom companies in the US, you may consider investing in the SPDR S&P 500 ETF (SPY). This ETF held a total of ~2.7% in AT&T (T), Verizon (VZ), CenturyLink (CTL), Frontier Communications (FTR), and Level 3 Communications (LVLT) at the end of April 2016.