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The report noted that the strong broadband subscriber growth in
all regions during 2003 provides further evidence that consumers
desire high-speed access to the Internet. Additionally, a highly
competitive environment among broadband service providers is benefiting
consumers with attractive pricing and features. This is particularly
true in the Asia-Pacific market, which has some of the highest broadband
penetration in the world.
DSL continues to be the dominant technology in nearly two-thirds
of the global market. The Cable modem service continues to dominate
only North American. In fact it lost market share to DSL and other
broadband access technologies in the fourth quarter of last year.
For over 12 years, RHK has been providing advice, analysis, and
research to telecommunications companies. RHK offers continuous
research and strategic consulting in several areas.
Meanwhile another report from the Yankee Group has stated that
the pace of broadband growth in the US is being hampered by the
cost. Consumers are struggling to distinguish between high-speed
Internet options. While interest in high-speed services is still
growing, dial-up consumers remain highly price-sensitive. Only 17
per cent of consumers said that they were likely to subscribe to
broadband at $45 per month.
71 per cent of US internet customers claimed that they would switch
to broadband if it were available at a lower price. Based on the
responses Yankee added that DSL providers were hitting the vital
price point. In addition tiered services continue to be attractive
to consumers, with 43 per cent of dial-up households more likely
to subscribe to broadband if they could choose a lower speed / lower
priced package. This next generation of adopters is less concerned
with connection speed than their predecessors and more interested
in cost.
The report was titled Technologically Advanced Family (TAF) Survey.
The report further suggests that bundling will prove an effective
strategy for targeting the secondary consumer market for broadband
services.
31 per cent of broadband households chose their high-speed providers
because of bundled discounts for multiple services. Bundling allows
providers to lower the monthly price of broadband without sacrificing
subscriber profitability because of higher revenue per customer
and lower churn
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