Survey: US Broadband Prices Still Too High

BOSTON, March 24 -- US consumers are struggling to distinguish among high-speed Internet options, according to The Yankee Group.

"While interest in high-speed services is still growing, dial-up consumers remain highly price-sensitive. Only 17 percent of consumers say they are likely to subscribe to broadband at $45 per month," said the research and consulting firm, which has published a report, "2003 Technologically Advanced Family Survey Findings Highlight the Consumer Market's Competitive Challenges."

"Seventy-one percent of Internet customers claim they would switch to broadband if it were available at a lower price," said Patrick Mahoney, a Yankee Group analyst. "Based on these responses, it appears DSL providers are hitting the vital price point. In addition, tiered services continue to be attractive to consumers, with 43 percent 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."

Based on results from the survey, the report suggests that bundling will prove to be an effective strategy for targeting the secondary consumer market for broadband services.

"Thirty-one percent of broadband households chose their high-speed providers because of bundled discounts for multiple services," Mahoney said.

For more information, visit: www.yankeegroup.com