Agency CEO Vacancy via PSD



Slow US Uptake of Broadband
2/6/01



Under a fifth (18%) of US households currently subscribe to broadband Internet services (eg cable modems), but an additional 13% say they plan to subscribe within the next six months. This is according to a new TNS Intersearch survey into the potential of US broadband Internet.

The survey results show that, when asked why they have yet to subscribe to these new services, respondents indicate high prices and low availability as the primary factors. Some 22% also said that cable modems and the like were too expensive, while 15% claimed that these services were not available in their area.

While dial-up modems and broadband options are leading the way among new Internet delivery methods, the findings do reveal a strikingly low response for Internet-access television and Interactive Television (iTV). Only three percent of Americans say they currently subscribe to services such as WebTV and TiVo, while only an additional four percent say that they plan to do so in the next six months. The vast majority (78%) say they do not subscribe to Internet-access TV. A similar level (75%) who do not subscribe to iTV say they have no interest in doing so.

On an optimistic note, Brenda McFarland, senior vice president of TNS Intersearch, commented that, "Clearly, the appeal of these broadband services is becoming more widespread. While the Internet delivery method of choice continues to be the dial-up modem at 50%, we are seeing that once the prices of these broadband services come down and they become more accessible, a large portion of Internet subscribers will choose those services."

Arno Hummerston, director of TNS Interactive UK, added, "Much has been made of multiple Internet access methods, but this study implies that having both PC and TV access is not that popular at the moment. It appears that people are keen to upgrade existing options. In this respect, the UK is likely to see a greater buy-in to TV access, as there is more room for expansion than in the US market, where Internet access is almost double that of the UK. As some European countries with low, fixed-line telephone penetration are adopting the wireless access option, so TV access is likely to grow in these areas as it becomes available. Obviously, the situation surrounding the implementation of broadband is not helping the development of the market. Once the Internet delivers everything it has promised since the launch of ISDN a few years ago, perhaps people will begin to support e-commerce and the dotcom world to the extent that new access models are adopted more quickly."

TNS Intersearch conducted the study among 1,022 UK adults ages 18 and over by telephone between 11 and 15 April 2001.