uploads///Telecom Primetime Internet Speeds May

What Are the Fastest Internet Services in the US for Netflix Users?


Jun. 29 2016, Updated 12:06 p.m. ET

Fastest Internet services in the US

In the last part of the series, we learned about AT&T’s (T) intention to expand its GigaPower service. The fiber-based service can give maximum Internet speeds of one gigabit per second, subject to conditions. Now let’s look at the Internet speed rankings of top US ISPs (Internet service providers). At the end of 1Q16, the biggest four US wireline Internet players, by subscribers, were Comcast (CMCSA), AT&T, new Charter Communications (CHTR), and Verizon (VZ). The merger of Charter, Time Warner Cable (TWC), and Bright House Networks was completed on May 18, 2016.

Now, we’ll look at Netflix’s (NFLX) ISP Speed Index for the US in May 2016 as a proxy to Internet speeds of these players. In this index, Netflix takes into account the primetime speeds witnessed by its users.

As you can see in the above chart, among the large ISPs, AT&T U-verse got the tenth position in this index for May 2016. Meanwhile, Bright House was the fastest in the index for May. The cable player’s rank in this speed index improved a notch from April 2016.

Meanwhile, Verizon Fios’s position in the index dropped a notch to second in May 2016. Cox and Cablevision (CVC) Optimum followed Verizon Fios in this index. Charter Communications, Comcast, and Time Warner Cable got the fifth, sixth, and seventh ranks, respectively, in this index.

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Top DSL services in the US

AT&T DSL (digital subscriber line) got the 12th position in the Netflix ISP Speed Index for the US in May. The DSL services of Windstream (WIN), Verizon, and CenturyLink (CTL) followed AT&T DSL in terms of Internet speeds, as per the index for May 2016.

For diversified exposure to some telecom companies in the US, you can consider investing in the SPDR S&P 500 ETF (SPY). The ETF had invested ~2.7% in AT&T, Verizon, CenturyLink, Level 3 Communications (LVLT), and Frontier Communications (FTR) as of the end of May 2016.


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