Saturday, April 01, 2000

DSL Predicted to Supercede Cable Modems

Another recent survey, conducted by Parks Associates as part of its Broadband Access@ Home™ study, also concedes that DSL is taking the lead over cable modems as the consumer's choice for access.  Parks Associates' researchers covered a sample of approximately 600 broadband users, both cable and DSL, as well as over 6,000 dial-up Internet households in New York, Atlanta, San Jose and Phoenix.  The survey's results indicate that consumers were more aware of cable modem availability than of DSL.   "This is understandable," said Hongjun Li, director of research at Parks Associates, "because commercial deployment of cable modem service started much earlier than DSL."  However, of those participants aware of both services, many listed DSL as the more desirable option.

Dial-up Internet users were asked which service they would most likely consider when the time comes to upgrade their Internet connection.  According to the Parks Associates report, 34 percent said they would prefer DSL, while only 25 percent would opt for cable modem service.  "Their responses indicate that more people want to do business with telcos than cable operators.  Consumers seem to be more open to DSL, if they have a choice between the two (cable or DSL.)  The key issue is the [customer's] perception of [cable] service providers.  Cable's past record for poor customer service is still hurting them," added Li.

Customer service issues are abundant in every niche of the industry.  In the cable/DSL battle, what customers perceive to be the "better product" may be a key factor in swinging the fight in DSL's favor.  According to Hongjun Li, "Cable operators can do many things to address [their perceived failings], including aggressive marketing and more attractive service plans."  Li also suggest that cable operators should not rely too heavily on telemarketing or media advertising.   The company's research indicates that direct mailings and consumer's own research and referrals have the most influence.

From the article, "DSL Predicted to Supercede Cable Modems," by Andrea Miralles.

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