How US Consumer Broadband Will Weather The Economic Storm

A strong majority of US consumers expect their overall financial situation to remain the same or become worse over the coming 12 months, which means that they will reassess all their discretionary expenses. Fortunately for broadband service providers (BSPs), the economic downturn will have little impact on current subscribers' broadband budgets. Broadband is unique in that it delivers myriad benefits to consumers in the form of communication, information, and entertainment. Consumers now view broadband as a necessity rather than a luxury and are thus not interested in disconnecting or even downgrading their broadband services. The value proposition for broadband will even encourage some users to spend more of their budget on faster connections. Still, the tight economy will cause many consumers to be tempted by discounted offers from competitors, particularly when facing a significant price increase upon the expiration of a promotional pricing deal.