Nearly 40% of U.S. employees can telecommute, reported Recon Analytics Thursday. Of those, slightly more than half are contemplating moving to a smaller city or town, it said. “The pandemic has prompted many Americans to reevaluate their priorities and living conditions.” The prevalence of videoconferencing drove bandwidth requirements upward, “especially on the upload side,” it said. The analyst firm canvassed 1,600 employees on COVID-19 videoconferencing, finding more than a quarter use it frequently for work, 21% occasionally.

Sonos, whose exclusion from the List 4A tariffs was granted in March (see 2005110034), is diversifying its supply chain into Malaysia even amid COVID-19 delays, said Chief Financial Officer Brittany Bagley on a quarterly call Wednesday. The company planned to have “significant” U.S.-bound production from Malaysia ramped up by Dec. 31. Due to pandemic-related government restrictions on manufacturing in Malaysia, reaching scale will take until mid-2021, Bagley said. “Essentially all” Sonos products subject to 7.5% tariffs fall under the exemption, which was retroactive to Sept. 1, but expires Aug. 31. Sonos began the process of seeking refunds. Revenue fell 4% in fiscal Q3 ended June 27 to $249.3 million. Gains were offset by higher freight costs to increase inventory levels and fill back orders to meet “higher-than-expected” demand. Most of Sonos’ physical retail partners were closed for in-store sales during much of Q3, said the shareholder letter. The majority have reopened but with capacity and other restrictions. It’s confident it can continue to scale its direct-to-consumer channel, up 299% in the quarter, “over time.” On the transition to the S2 operating system, which left many legacy product owners angry, CEO Patrick Spence said there's “no churn" and “millions” of homes have converted. The wireless multiroom audio company, which last week settled with Lenbrook over a patent infringement lawsuit (see 2007300059), remains confident about its patent fight with Google at the International Trade Commission, said Chief Legal Officer Eddie Lazarus. There are “quite a few companies” in the multiroom audio space that Sonos believes are infringing its patents, “and we're in touch with many of them.” The stock closed 18.3% lower Thursday at $14.29.

Lockdowns helped Roku add 3.2 million incremental active accounts, a record for a non-holiday quarter, said Chief Financial Officer Steve Louden on a Wednesday evening call (see materials here under Q2). The company ended Q2 up 41% year on year in active accounts, at 43 million, fueled by shelter-at-home mandates. Revenue jumped 42% to $356 million, reflecting growth in platform and player segments. Player sales rose 28%, while average selling price decreased “only 2% ... given less promotional activity due to strong demand” and some inventory constraints, said Louden. The stock closed 6.9% lower Thursday at $153.87. The outlook for that industry remains “highly uncertain” for this year and it will be “well into 2021 before TV ad investment recovers to pre-pandemic levels,” said CEO Anthony Wood. The ad streaming market is in “very early days,” said Wood, envisioning that “all television is going to stream. Streaming hours per active account peaked in early Q2 and “has since moderated, but remains above pre-COVID levels,” said Louden. Responding to a question on HBO Max and Peacock, which launched over the past few months outside the Roku platform, Wood said, “We're not always first when it comes to adding new services to our platform because it's important to us that we establish a win-win-win relationship.” The company wants to “add all the content that we can.” Roku’s economic model with content distribution partners and advertisers “is what funds our business” and allows the company to sell low-cost players." MoffettNathanson tempered its view in a Thursday investor note, saying “looming competition from Android and TV OEMs,” and lack of key performance data makes it difficult to extrapolate COVID-19 lockdown gains into the future. The slowdown in ad impression growth in Q2 to 50% from nearly doubling in Q1 “is a bit worrying” given linear ad market trends, said Michael Nathanson. Ad-based VOD “appears a bit weaker than anticipated” given the rise in active accounts, he said. Though Roku appears well-positioned for the trend, the analyst said “it remains unclear if they will get a cut of Mulan purchases on Disney+ or share the economics of similar transactions on other major [Subscription] VOD platforms” (see 2008050037).

Rules for the 70/80/90 GHz bands should be optimized for wireless backhaul and compatible applications, said T-Mobile and other carriers in comments posted Thursday in docket 20-133, in response to a June NPRM (see 2008050058). Others sought broader use.

The FCC approved eliminating rules restricting same-market, commonly owned radio stations from airing duplicate programming, 3-2 Thursday. It eliminated restrictions for both bands, as expected (see 2008040063). The draft applied only to AM.

The pandemic “highlights the urgent need to advance toward smart healthcare systems” based on 5G, reported ABI Research Wednesday. It forecasts 5G will generate just under $400 million in healthcare revenue, with 4.6 million connections, by 2026. “These numbers underscore the huge momentum that we see for 5G adoption in the healthcare domain,” said ABI. “5G will be an important building block for smarter and more efficient healthcare systems.”

Stay-at-home orders are breathing new life into tablets, reported Strategy Analytics Wednesday. Q2 shipments grew 17%, the highest quarterly growth in six years, said SA. Back-to-school demand could further boost the tablet market in the fall, it said. “Sales could see an extended resurgence due to lower price points if remote work and school options remain post-pandemic.”

“Record-level unemployment and continuing uncertainty" led consumers to cut discretionary spending 50%, said Parks Associates' David Drury Wednesday. Consumer tech purchases increased during the COVID-19 pandemic, he said. Some 26% of U.S. broadband households bought electronics, and demand is expected to continue into next year and possibly 2022, said the analyst. Strong demand will continue for residential broadband to enable streaming video services and messaging, video calling and virtual meetings, he said. About three-fourths of households subscribe to at least one streaming video service; half to two or more. Some 30% intend to avoid public events and large gatherings into 2021 over concern of exposure, said Drury. Seventy percent believe the economy will need a long time to recover; 23% believe the economy will rebound quickly once social-distancing measures are lifted. About 29% say they are delaying vacations or personal travel at least until next year.

Competitive Carriers Association President Steve Berry urged congressional leaders Wednesday to “consider provisions” in any compromise version of the next COVID-19 aid bill that would “help Americans connect to broadband, and in particular, mobile." Senate leaders are negotiating with House colleagues and the White House, though there's no sign of a deal. Majority Leader Mitch McConnell, R-Ky., said Wednesday the chamber will delay the start of recess and be in session next week amid hopes for a breakthrough. Senate Republicans’ recent proposals included a few telecom and tech provisions (see 2007280059). House Democrats had more tech and telecom language in their Health and Economic Recovery Omnibus Emergency Solutions Act (HR-6800), including broadband funding (see 2005130059). “Wireless technology is the optimal way to provide immediate connectivity to Americans seeking a broadband connection,” Berry said in a letter to McConnell, House Speaker Nancy Pelosi, D-Calif., and the chambers’ minority leaders. “Prioritize policies and support for wireless broadband as you move forward with pandemic relief legislation. Consumers need connectivity now,” he asked. Sen. Amy Klobuchar, D-Minn., also sought broadband provisions in the next pandemic bill Wednesday, saying in a floor speech that "all Americans should have access to high speed internet. This pandemic has put a magnifying glass on the gap. It’s time to act now."

The pandemic will continue well past Sept. 30, so the FCC Wireline Bureau should extend its gift rules waiver to the Rural Health Care and E-rate programs to June 30, 2021, the Schools, Health & Libraries Broadband Coalition, Consortium for School Networking and State Educational Technology Directors Association said Wednesday in a docket 02-60 posting. The bureau approved the waiver in March to run through Sept. 30 (see 2003180054). The gift rules promote fair and competitive bidding in normal times, but the unprecedented health crisis means schools, libraries and healthcare providers should be able to accept needed broadband equipment and service donations from the private sector, the groups said.