“The economic environment of the past year, combined with uncertainty surrounding competing technologies and floundering business models, threatens to slow the growth in demand for residential broadband. However, we see great opportunity for vendors to tap into an unmet demand for more economical, yet sophisticated broadband services,” commented Peter Jarich, director of broadband research for The Strategis Group. “WeÂ’ll be watching closely in the coming year for developments in this market.”
Currently, says Strategis, there are several problems hampering the growth of residential broadband. Recent marketplace failures are impacting consumer confidence and in some areas the availability of residential broadband service is an issue as is the current lack of compelling broadband content. Good quality content which appeals to a wide audience is needed in order to boost the popularity of residential broadband services.
The Strategis Group claims that despite these challenges, increased technical efficiency and technological developments will allow service providers to offer lower-cost services to consumers.
The report concludes: “Furthermore, current residential broadband subscribers are reporting high levels of satisfaction with their service. It is the expectation of The Strategis Group that companies that are able to roll-out reliable customer service, strong marketing campaigns, and new consumer-oriented services and applications have the potential to drive the reach of residential broadband to over 35% of households in the United States by 2006.”
