Limited Consumer Interest in New Services to Challenge BSPs
As new broadband access technologies begin to compete with DSL and cable for the residential market, and as consumers are offered greater choice in selecting a broadband provider, the battle for the broadband consumer will become increasingly intense. Service providers are actively shopping for new broadband services to entice residential customers, thus hoping to provide a means of differentiating their service offerings from their competitors.
Determining which of the new value-added services the residential customer will embrace, however, may be a disheartening process for many service providers. A new study from Parks Associates called "The Broadband Networked Household: Profiles of an Emerging Market," suggests that when costs and terms are introduced, the level of interest declines considerably.
"This is not to suggest that some specific services do not enjoy a higher level of interest across these variables," says Michael Greeson, senior analyst and author of the study.