Broadband Success Will Depend on Consumer Cost

LOS ANGELES, Feb. 19 -- Cost will be a leading challenge in promoting broadband to the home, according to a University of Southern California (USC) study that addresses the Federal Communications Commission's (FCC) agenda to encourage universal high-speed access, promote investment and spur competition.

"Our research suggests consumers will not pay more than $25 per month for high-speed access, which helps to explain why less than 5 percent of US households currently have high-speed access," said Professor Elizabeth Fife, Ph.D., senior researcher at USC's Center for Telecommunications Management (CTM).

CTM, part of the Marshall School of Business, recently released a comprehensive industry-wide telecom study edited by Dr. Fife, the "Telecom Outlook Report: Millennial Edition," which surveyed senior-level executives in communications firms and organizations, government authorities and analysts in the US, Asia and Europe on the challenges facing telecom markets.

The FCC tentatively proposed last week that regulatory costs be reduced to lower pricing and speed deployment of new broadband services to the public.

According to 60 percent of the experts surveyed by USC, performance limitations and infrastructure costs remain serious impediments to broadband's success in the U.S.

In late February, USC's Center for Telecommunications Management will host a closed executive roundtable with industry leaders on the future of broadband. Senior executives from companies such Cisco, SBC, Lucent Technologies, Qualcomm, AT&T and Verizon are expected to participate.