Preventing DSL From Becoming The Next Dial-Up

February 26th, 2009

Doug Williams

With contributors:

Summary

Over the past two quarters, new US cable broadband subscribers outpaced new DSL subscribers by a margin of more than four to one. Although low cost, fast speed, and the convenience of a bundle are the top purchasing criteria for both DSL and cable broadband subscribers, DSL operators are attracting fewer of the desirable customers in terms of age and income. To avoid becoming the 21st century equivalent of dial-up access, consumer product strategists for DSL providers must first and foremost lure consumers into faster speed tiers. These faster services will diminish consumers' desire to migrate to a quicker cable broadband service. Consumer product strategists at telcos that offer both DSL and wireless services should build bridges between these business units to leverage their companies' unique position in the market in advance of the impending move into wireless by their cable competitors.

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