Friday, March 19, 2004

Slower growth in U.S. broadband uptake ahead - study

Kurt Scherf, VP of research at Parks Associates, reiterated the message that service providers need to emphasis service bundles not high-speed access in order to mop up the remaining dial-up users. The value is in one service, one bill, reduced cost, he told TOTAL TELECOM. He noted that Cox Communications has seen churn drop to less than 1% since offering a bundled service compared with 3% before.

To date the fixed broadband providers have not been concentrating on the vast rural areas in the United States. While unsure of exact figures, anecdotal evidence suggests there is lots of pent-up demand, according to Scherf. The U.S. Department of Agriculture has made funds available to entities that wish to roll out service to these areas but, said Scherf, there has been a snag in distributing those funds, for varying reasons.

From the article "Slower growth in U.S. broadband uptake ahead - study" By Elizabeth Biddlecombe

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