Fair To Partly Cloudy For U.S. Residential Broadband Market.
October 20, 2001
A new survey from Parks Associates indicates that of the 46 million dial-up Internet subscribers in the United States, the vast majority (almost 75%) are content with the quality of their Internet service. This research, part of Parks Associates’ latest consumer research project Bundled Services & Residential Gateways, suggests that broadband providers will have a difficult time convincing consumers to switch to broadband Internet service.
“The greater part of new broadband subscribers in the next few years will be households currently using dial-up or narrowband Internet service,” says Michael Greeson, senior analyst and director of broadband research for Parks Associates. “Broadband service providers are banking on an increasing number of these subscribers becoming frustrated with dial-up service, which makes broadband seem more compelling. But if dial-up customers remain pleased with the quality of Internet service at $15 – $25 per month, providers are going to have a tough time selling broadband at $45 – $50 per month.”
Simply stated, if dial-up users are satisfied with their Internet service, they are much less likely to upgrade to broadband. In fact, the main reason cited by narrowband users not intending to upgrade to broadband is that dial-up is “good enough” for their Internet needs.
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For more information at http://www.parksassociates.com
