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Parks Associates Research Shows Faster Broadband Speeds Drive More Switching Than Do Lower Fees

DALLAS, TX — (Marketwired) — 11/30/15 — 9% of U.S. broadband households switched broadband providers in the past 12 months, with 35% of them doing so to get a faster broadband speed. Only 18% of switchers changed because a different provider offered a lower price at a comparable speed.

“For many, broadband is a necessity for the home. No one wants slow or spotty service, and consumers are quick to switch if they encounter problems,” said , Director of Research, Parks Associates. “Operators are promoting broadband speeds of 100 Mbps or more. While 43% of subscribers do not know their current broadband speed, they do know about the experience that they have online, particularly as it relates to digital media. Respondents who own multiple connected entertainment devices are more likely than others to plan to upgrade their broadband service. Very high speed services, including gigabit-speed offerings, will be the next stage of competition among operators. Though few consumers today actually need that level of throughput, consumers are willing to pay to ensure that they do not encounter slowdowns or other performance problems.”

The research, , shows over one-fourth of U.S. broadband households believe that their broadband speed is faster than needed, while 10% plan to upgrade to a more expensive but faster service.

“Consumer expectations for their broadband service are changing as they add more devices and adopt new habits,” Sappington said. “For example, 34% of consumers who regularly watch Internet video on a tablet plan to upgrade their broadband service. What was fast enough yesterday could be too slow today — it all depends on the quality of their experience and new devices in use.”

360 View Update: The Need for Speed: Broadband and Data Consumption examines broadband services received by U.S. households, consumer perception of broadband speed, and the impact of speed on churn and switching providers. It is available for purchase at . To schedule an interview with Brett Sappington or to request specific research data, contact Holly Sprague at , 720.987.6614.

Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company–s expertise includes digital media and platforms, entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, support services, consumer apps, advanced advertising, consumer electronics, energy management, and home control systems and security.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS Conference Series, Connected Health Summit: Engaging Consumers, and Smart Energy Summit: Engaging the Consumer.

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Holly Sprague
Parks Associates
720.987.6614

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