Monday, December 10, 2001

Broadband firms find themselves dead in the water

Taipei TimesBut in the US, financial difficulties have plagued broadband providers. Excite and other broadband companies like NorthPoint Communications, Covad and others have either shut their doors or sought refuge from their creditors in bankruptcy court.

According to a Parks Associates survey of 2,500 US households in July, almost 75 percent of the 46 million dial-up Internet subscribers in the US are content with the quality of their Internet service. Besides the financial woes, analyst believe US households are, generally, satisfied with their slower dial-up connections, especially when it costs half of broadband.

"Broadband service providers are banking on an increasing number of these subscribers becoming frustrated with dial-up service, which makes broadband seem more compelling," said Parks analyst Michael Greeson.

"But if dial-up customers remain pleased with the quality of Internet service at US$15 to US$25 per month, providers are going to have a tough time selling broadband at US$45 to US$50 per month."

From the article "Broadband firms find themselves dead in the water."

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