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Telecom Industry Will Adapt to K-shaped Economy in 2026

The K-shaped economy that emerged during the COVID-19 pandemic will likely become more pronounced through 2026, and the telecom industry will need to adapt to this new economic reality. Based on balance-sheet strength, earnings power, and real, inflation-adjusted wage growth and revenue increases, as well as a host of other economic KPIs, the top 10% to 20% of households and businesses are doing exceptionally well financially (on average) while the bottom 80% to 90% of households and businesses are doing worse financially (on average) compared to historical metrics. In 2026 communication service providers (CSPs) will need to cater better to each arm of the “K” and better navigate the negative aspects of this ongoing economic situation.   

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2026 Predictions: Telecom

Because cars, homes, phones and internet service are essentials, bad debt expense is likely to continue rising through 2026, and telecom providers will feel the impact

The unprecedented wave of government stimulus allocated for broadband digital divide-related initiatives, such as the U.S. Broadband Equity, Access and Deployment program, coupled with advancements in satellite connectivity and fixed wireless access (FWA), will ultimately completely reshape the market for high-speed broadband, both in the U.S. and in most of the global market

TBR expects CSPs to increasingly bifurcate their high-speed broadband offerings, with more “economy” priced plans aimed at a larger portion of the market and more premium speed tiers catered toward the upper arm of the K-shaped economy.