Broadband demand to rebound in second half?
Mon, 08/11/2003 - 8:00pm
Staff

Increasing dissatisfaction with dial-up is likely to boost broadband adoption in the coming months in spite of the fact that broadband growth slowed in the second quarter of this year, according to new data gathered by research firm Parks Associates.

"When combined, these two factors suggest favorable demand for broadband in the next few quarters," said Michael Greeson, VP and principal analyst for the firm. "Although little has changed in the substance and quality of narrowband service, dial-up subscribers are increasingly judging the quality of their connection based on the perception of what broadband has to offer."

The survey, which polled 2,300 U.S. households, reveals that only 11 percent of narrowband subscribers are "extremely satisfied," compared with 30 percent of narrowband subscribers in 2001. Moreover, while only one-third of narrowband subscribers were likely to upgrade to broadband service in 2001, almost one-half of current narrowband subscribers are similarly inclined.

Parks Associates' research suggests that, among the many reasons why people switch to broadband, speed of service inspires two-thirds of such upgrades. "Despite efforts to emphasize unique content, speed of service remains the primary driver," Greeson said.

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