Speed drives broadband churn

Broadband speeds drive broadband subscribers to switch providers, according to New research from Parks Associates, a marketing research firm. Last year, nine percent of households switched broadband providers; Parks’ research found that 35 percent of those households switched to get faster service while only 18 percent switched to get comparable speeds at a lower price.

“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, Parks Associate’s director of research. “Consumer expectations for their broadband service are changing as they add more devices and adopt new habits. For example, 34 percent of consumers who regularly watch Internet video on a tablet plan to upgrade their broadband service.”

As Internet consumers connect with more devices and consumer more data, ISPs areadapting to their customers’ new habits. “What was fast enough yesterday could be too slow today – it all depends on the quality of their experience and new devices in use,” Sappington added.

Parks Associates research shows faster broadband speeds drive more switching than do lower fees (Parks Associates, Nov. 30, 2015)

Are zero-rating video plans pro-consumer or do they violate net neutrality? (Speed Matters, Nov. 24, 2015)