MarketingFix: Dial Up Users Would Pay Less for Broadband
It's true that if broadband cost less, more people would subscribe. That's true of anything. But will cable companies offer slower speeds for less money? Is that a smart business desision on their part? Will people notice whether they have 768K or 1.5MB? Will they care?
UK experience is that customers like tiers of service and tiers of price especially if you allow easy movement between the tiers. ntl (UK's largest Cable company) offer 3 - 150k (not really broadband)@ £17.99, 600k £24.99 and 1Mb £34.99 per month. Telewest (Uk's no 2) offer 512k, 1Mb and 2Mb.
The uptake has been tremendous because of this and has seen cable take the lead on Broadband against BT ADSL, which is incredible given the geographical footprint and monopolistic situation of the ex-national telco.
The numbers do stack up. People do notice the difference and they care but not that much.
Personally 600k is more than adequate for what I do online and unless the so called 'killer app' turns up (or I have to compete with my children for bandwidth) then why do most people need more?
Posted by Paul Goodison at June 23, 2003 04:17 PM | TrackBack