Are There Two Broadband Markets?

In a survey of 8,000 broadband customers nationwide, Parks Associates found that FWA cellular wireless customers feel better about the price they pay for broadband than subscribers of other technologies. The survey asked broadband customers to react to the following statement: “I receive Internet service at a fair cost / good price”. The response by technology was as follows:

• 61% of FWA cellular customers reacted positively to the question.
• 51% of fiber customers feel they are paying a fair price.
• 40% of DSL customers responded positively.
• Only 35% of cable customers think they are paying a fair price.

These responses are measuring two things—the way customers feel about broadband performance of each technology combined with how they feel about the price. My consulting firm conducts surveys, and we’ve been seeing similar results. I’ve recently come to the conclusion that there are two different broadband markets in the country—a market of customers who care about price and one where customers care about speed. It’s virtually impossible for a cable company to satisfy both sets of customers.