More than one-third of consumers who switched service providers in the past 12 months did so in order to obtain a faster service at a comparable price

Parks Associates announced new research today showing 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 Brett Sappington, 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, 360 View Update: The Need for Speed: Broadband and Data Consumption, 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.

To schedule an interview with Brett Sappington or to request specific research data, contact Holly Sprague at [email protected], 720.987.6614.

About Parks Associates: Parks Associates, a woman-founded and certified business, is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates provides business intelligence and research services through its proprietary methodologies developed over decades, including quarterly surveys of 10,000 internet households.

The company's expertise crosses many industries: home security and smart home, streaming video, broadband and pay-TV services, digital media and platforms, gaming, Wi-Fi and home networks, connected health, support, consumer electronics, home control systems, energy management, and tech solutions for the multi-dwelling (MDU), small-to-medium business (SMB), and commercial building markets.

Each year, Parks Associates brings thousands of leaders together for its webinars and annual events. The firm hosts the annual executive research and strategy conferences CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. https://www.parksassociates.com
 

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