The current broadband market has reached a point where the race for speed is largely over, with 89% of consumers indicating they already have enough speed. With the global broadband market expected to reach a value of approximately $400 billion by 2030, service providers need new ways to innovate and grow average revenue per user (ARPU) beyond mere speed enhancements. Instead, broadband service providers need to shift focus toward improving the Wi-Fi experience through advanced value-added services (VAS) to sustain revenue growth.
In that context, the Broadband Forum's 'Future of the Connected Home' report, developed in partnership with Omdia and proudly sponsored by Incognito, offers essential insights. The 2025 report includes feedback from 116 telecom executives across 32 countries and in-depth interviews with key service providers from Latin America, the Middle East, North America, Europe, and China. It explores the latest technologies, strategies, and standards shaping next-generation broadband VAS.
Compared to the 2023 report, which laid the groundwork by exploring emerging connectivity standards and initial VAS adoption, the 2025 findings focus significantly on the adoption of advanced Wi-Fi technologies, artificial intelligence (AI) in the home, and the increasing role of software containers and edge computing in service delivery. The report highlights a maturation in telcos' capabilities and strategic priorities to enhance the customer experience.
Quality Wi-Fi and customer experience management remain critical priorities. Network optimization and home Wi-Fi quality have become focal points, with heavy investments in hardware, applications for Wi-Fi management, and proactive issue resolution. While residential gateway routers have previously been seen as a necessity and choosing the right customer-premises equipment (CPE) supplier was all about the lowest cost, service providers have increased their investments in this space to take advantage of improved performance and capabilities. Technologies such as Wi-Fi 6 are now offered by 74% of telcos, with 23% already deploying Wi-Fi 7 and many exploring fiber to the room (FTTR) solutions. These advances enable providers to effectively support complex, high-demand home networks.
Investment is not only in hardware but also in Wi-Fi diagnostic and performance management software, which enables detailed insights into home network health. A third of homes now have some deployment of AI-powered solutions, with operators utilizing AI embedded in CPEs to provide real-time analytics, optimize networks, improve energy efficiency, and enable smart home functionalities. About 75% of telcos see AI as essential to enhancing consumer home broadband experiences.
As service providers continue to invest in high-speed broadband technology, subscribers expect a high-quality experience in every part of the home. Therefore, Wi-Fi management to help them maintain a good Wi-Fi experience remains a critical area of focus for service providers as it's the top broadband VAS being deployed. With this in mind, L4S (Low Latency, Low Loss, and Scalable Throughput) is a key emerging technology that reduces latency spikes caused by excessive buffering through intelligent congestion control, improving the performance of real-time applications such as gaming and videoconferencing. Over half of telecom operators plan to deploy or are evaluating L4S to enhance home network quality of experience. Cybersecurity and parental control services are becoming increasingly important to consumers, with many willing to pay a premium for enhanced protection and control. Recent research shows that offering cybersecurity can boost ARPU by $5–11 USD and reduce churn by up to 26%. Advanced security features are also among the top value-added services driving strong consumer interest.
While telcos are leveraging more sophisticated Wi-Fi technologies alongside these VAS to create value and competitive differentiation, they face deployment challenges, including integrating diverse devices and maintaining a balance between security and openness. These challenges can delay the rollout of new VAS. To address this, many operators are increasingly using software containers to deploy applications and new features directly onto CPEs.
Additionally, service providers anticipate future shifts where CPEs incorporate edge computing capabilities, adopt vendor-agnostic containers, and embrace open-source development models. This evolution is expected to enable more agile and scalable delivery of broadband services.
A pivotal development is the User Services Platform (USP), a Broadband Forum standard designed to manage the entire connected home ecosystem. USP facilitates comprehensive Wi-Fi optimization and efficient delivery of broadband and smart home services. The widespread adoption of USP is evident as 88% of respondents have either deployed or plan to deploy USP within 18 months, underscoring its critical role in future broadband service architectures.
Across the industry, operators are also evaluating the broader standards landscape that underpins innovation in the connected home. All operators interviewed agreed that reducing fragmentation and minimizing proprietary technology at the chipset, CPE, and software platform levels accelerates innovation. In this context, open-source platforms such as RDK-B and prpl emerged as leading contenders, while OpenWRT and Matter have also become important to enabling the connected home.
Together, the rise of USP and the exploration of open-source CPE software standards illustrate a key industry trend: service providers are increasingly relying on interoperable, standards-based frameworks to unlock agility, deliver better in-home experiences, and drive the next wave of broadband services.
Incognito's Digital Experience (DX) Solution stands out as a key enabler of these future-ready broadband services. It supports the TR-369 USP standard and hosts the world's largest USP deployment, managing over eight million devices across a leading North American mobile operator's network. Incognito also integrates seamlessly with various app ecosystem partners to quickly deliver VAS like Wi-Fi traffic and app prioritization, network security, and more.
Telcos now understand that competing solely on speed is unlikely to increase ARPU substantially. Instead, offering next-gen VAS provides a promising avenue to drive new revenue growth. The success of these services hinges on service providers effectively communicating their value to customers—not only at launch but continuously—to ensure customers recognize and appreciate the benefits. If customers are unaware of, or do not understand their value, telcos may fail to capture the full monetary potential of VAS.