Commentary

Just an Online Minute... Tiered Broadband

One of the things the online world is talking about today is the ABC/RealNetworks streaming video deal, so I thought I'd share some stats that put streaming in perspective.

Data from High Speed Data, Challenges and Opportunities, a recent survey of broadband internet services landscape, show that 40% of current dial-up subscribers are currently considering switching to high speed data service, either through a cable modem or a DSL line. That puts potential penetration of high-speed data (HSD) in the near future at 54% of all Internet users, researcher say.

One of the more interesting findings in the survey is consumers' interest in applications such as home networking, firewall and security and parental controls. Seven out of ten of all current broadband subscribers express interest in at least one of the applications tested, and almost one in four express willingness to up upwards of $10 more than the standard price for high-speed access for such applications. Potential is also strong among the next wave of high speed adopters with 81% express interest in add-on applications with 32% willing to pay more than the current $45 average monthly cost for HSD.

What's more, the study found that some current and potential HSD costumers will also pay more to access premium contents such as streaming and downloadable music and video, news, sports and kids content.

According to the report, tiering - allowing consumers more control over the price of broadband services with choices of speed, bytes and game capabilities- will also pay a role in driving adoption. Almost half of those considering HSD are interest in some type of tiered service, with 18% willing to pay more for higher capacity tiers, and 14% choosing to pay less for lower capacity tier.

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