Communications and Technology Industry Research

In August 2008, International Data Corporation (IDC (News - Alert)) carried out a survey of 787 U.S. consumers in order to examine consumer views on broadband priority, bandwidth capping, and Internet privacy.

 

The findings both in the area of premium bandwidth services and bandwidth capping and metering were at variance with the commonly-held views of telecom policy makers and industry observers.

 

As many as 94 percent of the respondents regarded those BSP services as valuable that dynamically allocate premium bandwidth for certain types of traffic, such as video, VOIP, gaming, and telecommuter VPNs. More than half (54 percent) of the respondents said that they would take initiative to change service providers if another BSP offered this service. More than a quarter (26 percent) said that they would be willing to pay their BSPs more fees for premium bandwidth services.

 

The findings on bandwidth capping and metering were equally unexpected. Eighty-one percent of respondents were not in the favor of imposition of a bandwidth cap and charging for use above the cap, and 51 percent would change service providers if this were done. Remarkably, light and moderate users were more critical of capping and metering than were heavy users. Just 5 percent categorically said “those who use more should pay more.” Interestingly, 83 percent of the respondents didn’t have the slightest idea what a gigabyte is and how they use it.

 

These findings are of immense importance at a time when many broadband service providers (BSPs) are toying with the idea of offering premium bandwidth channels as well as imposing bandwidth caps and metered billing systems.

 

According to Matt Davis, director of multiplay research at IDC, “While some of the results of this survey were in line with expectations, others were significantly at odds with prevailing wisdom. Specifically, consumers continue to be protective of their privacy but are adamantly opposed to bandwidth caps and keenly interested in premium bandwidth services. These last two points may come as a surprise to those believing that bandwidth caps are inevitable and that consumers are unwilling to pay more for better services.”