Broadband Battle Brewing

More than half (56%) of US dial-up users say they are likely to upgrade their Internet connections to high-speed in the next six months, with an equal split between cable and DSL, according to Ipsos-Insight. In all, one in four households with Internet access say they are likely to switch Internet service providers (ISPs) over the same period.

Growth of overall Internet penetration is slowing with around two thirds of households connected, and broadband now accounts for nearly half (46%) of all home Internet access, up 7% from May 2003, with dial-up access at 51%. Todd Board, Senior Vice President with Ipsos-Insight's Technology & Communications practice, says the battle is brewing between cable and DSL: 'Broadband companies including cable, DSL, and satellite Internet providers will have to compete for a relatively focused segment of consumers who are likely to upgrade their connection from dial-up to high-speed'.

Cable leads DSL by 56% to 40% among current broadband homes, with 4% using satellite access. However, among the 56% of dial-up users likely to switch ISPs in the next six months, the two leading methods are neck-and-neck:

'The market looks pretty bleak for satellite ISPs' says Board. 'They've had a hard time making enough noise in the marketplace to compete with the cable and DSL guys, who have a much more entrenched footprint in American homes'.

In customer satisfaction terms, cable seems to have a slight edge at present - one in three (33%) cable ISP customers claim their ISP 'exceeds expectations', versus 21% for DSL and 17% for dial-up.

Board predicts the spread of promotions bundling DSL and cable access with basic phone packages, TV etc... as broadband providers seek to differentiate their offerings.

1,000 people aged 18 and older were interviewed by telephone between March 5th and 7th 2004 using the Ipsos US Express. The company's web site is at www.ipsos-insight.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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