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ARCHIVE 2006
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Recent Surge in Broadband Demand May Be
Short-Lived
Research from Parks Associates finds that interest in upgrading to
broadband Internet service is diminishing
Less than one-third of U.S. households with dial-up Internet service
are interested in upgrading in the next 12 months, indicating a
significant decline in potential broadband subscribers over the past year.
According to Parks Associates’
Trends
in U.S. Broadband Adoption, almost one-half of dial-up subscribers
were inclined to upgrade to broadband at year-end 2002. But given the
declining interest in broadband, 2004 may fall short of the 50% gain in
broadband households experienced in 2003, unless service providers offer
more enticing benefits such as dramatic price decreases or novel bundled
service offerings.
“Continued growth in residential broadband requires an ever-increasing
number of dial-up households jumping ship to higher-priced,
higher-bandwidth offerings,” said Parks Associates.
“But interest in upgrading to broadband seems to have peaked in Q4 2002 at
around 50%, a level of interest that translated into hefty subscriber
additions during 2003. As interest in upgrading declines, broadband
service providers must reinvent the broadband market message,
significantly lower what they charge for service, or offer some unique
combination of these two strategies.”
Parks Associates’ most recent broadband report,
Trends
in U.S. Broadband Adoption, features consumer data collected in Q4
2003, as well as a summary and analysis of residential broadband service
offerings and strategies in the U.S. For more information, visit
www.parksassociates.com or
contact Parks Associates at
sales@parksassociates.com or 972-490-1113.
About Parks Associates: Parks Associates is an
internationally recognized market research and consulting company specializing
in emerging consumer technology products and services. Founded in 1986, Parks
Associates creates research capital for companies ranging from Fortune 500 to
small start-ups through market reports, primary studies, consumer research,
custom research, workshops, executive conferences, and annual service
subscriptions.
The company's expertise includes new media, digital
entertainment and gaming, home networks, Internet and television services,
digital health, mobile applications and services, consumer electronics, and home
control systems and security.
Each year, Parks Associates co-hosts executive thought
leadership conferences CONNECTIONS™ and CONNECTIONS™ Europe in
partnership with the Consumer Electronics Association (CEA®). In addition, Parks
Associates produces the online publication Industry Insights in
conjunction with the CONNECTIONS™ Conference series.
http://www.parksassociates.com |
http://www.connectionsconference.com |
http://www.connectionseurope.com
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http://www.connectionsindustryinsights.com
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