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For Consumer Product Strategy Professionals

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December 3, 2008

US Broadband's Two-Pronged Growth Strategy

"Have" And "Have-Not" Consumers Need Radically Different Product Positioning

by Sally M. Cohen

with Michelle de Lussanet, Abe Garon, Laura Wiramihardja

This is an excerpt

Executive Summary

While broadband definitively dominates today's home access market — three-quarters of US online adults have high-speed Internet access at home — two types of online consumers exist. For broadband consumers, the Internet plays an integral role in their daily lives — 94% go online every day. Providers are responding accordingly, with more bandwidth and symmetry to accommodate online video, communications, telework, and other emerging Web-based activities. But the remaining 24% of online consumers who don't have broadband in their homes simply aren't as plugged in to — or reliant on — the Web. These broadband have-nots continue to see price as the biggest obstacle to their own home broadband adoption. Consumer broadband product strategists at telcos and cablecos need a two-pronged strategy to keep seasoned high-speed consumers paying — and to win those who are new to broadband.

This is an excerpt

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