Trends Report

The Shift From Broadband To Wideband

If You Build It, They Will Come . . . Eventually

February 17th, 2009
Doug Williams, null
Doug Williams
With contributors:
Julie Ask , Ina Mitskaviets

Summary

US broadband service providers' network upgrades are facilitating so-called "wideband" service offerings with download connection speeds reaching 50 Mbps. Some question remains as to whether consumers are ready, willing, and — given the economic downturn — able to pay significantly more for a super-fast Internet connection than they do for their current broadband service. Demand will be tempered in the near term because a strong majority of users finds their current service to be sufficient and is unwilling to pay for more speed. Nonetheless, consumers who engage in high-bandwidth entertainment activities online and users who live in busy online households are prime targets for wideband adoption. Broadband service providers should direct marketing messages to these key consumers rather than simply treating wideband as just another speed tier option.

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