Trends Report

What Will Make Consumers Switch To Fiber Broadband

June 24th, 2009
IF
Ian Fogg
With contributors:
Michelle de Lussanet , Laura Wiramihardja , Doug Williams

Summary

Internet providers are investing billions in next-generation broadband. While speeds will increase dramatically to 50 Mbps, 100 Mbps, or even 1,000 Mbps, just 7% of European online households will pay more for higher speed. Providers enjoyed easy customer acquisition during the dial-up to broadband transition era, but history won't repeat itself. Next-gen broadband will not be such an easy sell, as there's little pent-up speed dissatisfaction — yet. Now, provider strategies must be sophisticated to significantly raise consumer interest. Short-term tactics alone will not be sufficient. Providers must deploy strategies that include a mix of marketing of raw fiber speeds together with talent scouting for new fiber-dependent Internet services — essentially the Internet equivalent of music A&R — to drive fiber uptake. Strategies must also go beyond the PC to leverage high-definition TV to support next-gen business cases.

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