• by Aaron Baar , December 3, 2015

When it comes to broadband switching, it’s less about the price and more about the speed.

According to research from Parks Associates, 35% of the U.S. households that switched broadband providers last year did so to get a faster Internet connection. Comparatively, only 18% switched because a competing provider offered a comparable speed for a lower price. 

“Overall, faster broadband won out over price by and large,” Brett Sappington, Parks Associates’ director of research, tells Marketing Daily. “Consumers are continually looking to upgrade their broadband, which is why we’re seeing gigabit speeds even though they have no real use for it.”

Although only 9% of households with broadband switched providers last year, consumers’ focus on connection speed underscores the importance they are placing on having optimal Internet service at home. Although 43% of subscribers don’t know what their current broadband speed is, they are aware of the experience they’re having. And if that experience is too slow or lagging, they will look to change providers, Sappington says.

“[As a provider], you really have to compete at that level,” Sappington says. “Otherwise, you will be subject to consumers who are more price-sensitive.”

The inducement to find better providers increases as they add more devices to their existing connections. Just over a third (35%) of consumers who regularly watch Internet video on a tablet plan to upgrade their broadband service, according to the company. 

Broadband Internet has become an important element within U.S. homes. According to a new report from Leichtman Research Group, 81% have broadband service, up from 26% in 2005.

“Broadband these days is almost like a utility,” Sappington says. “Consumers want to make sure they get good speed and good quality at a reasonable price.”