A study titled "Broadband and the Home of Tomorrow," the Consumer Electronics Association says that the war between cable and DSL providers is in full swing. According to the report, the US now ranks 15th in the world in terms of the percentage of households with broadband. Over 43 million US households have broadband access of some sort. Dial-up is now used in only 36 percent of US households, down from 60 percent in 2003.
The Race is close
DSL and cable are neck-and-neck.
Each delivery method accounts for 29 percent of the home Internet access market. In contrast, cable had 15 percent of the market in 2000, while DSL accounted for a measly 4 percent.
Customer Satisfaction
When it comes to customer satisfaction, DSL rules the roost.
61 percent of consumers would recommend the service to a friend or family member, compared with only 46 percent for cable. Behind those figures loom the key service differentiators: speed and price. Cable subscribers are more likely to be happy with the speed of their service (76 percent) than DSL users (69 percent) and dial-up users (26 percent). The bigger factor, however, appears to be price.
DSL Providers are Aggressive!
DSL providers have been extremely aggressive with pricing.
In the last couple of years, DSL providers have been very aggressive with pricing over in an attempt to grab the lion's share of broadband customers. That continues today, with AT&T offering residential DSL (up to 1.5Mbps) for as little as US$12.99 during the first year of service. Low prices resonate well with cost-conscious consumers, with only 26 percent of cable Internet users happy with the price they pay for service. Contrast that with the 46 percent of DSL users and 53 percent of dial-up users who are happy with the price.
DSL is Priced to Move
Why aren't more people abandoning pokey dial-up connections?
Strange as it may seem to those of us who spend a lot of time online, some people just don't want or see the need for broadband. Up to 18 percent of current Internet users have no plans to upgrade to broadband at any price.
Although consumers appear to be at least somewhat satisfied with the speed and price of broadband offerings, what they would really like is more choice.
"Consumers desire even more choice when it comes to broadband. Currently, only 15 percent of online U.S adults are very satisfied with their current number of ISP choices. It boils down to choice and the value equation. Yes, speed and reliability are important, but the cost must be factored in, and when it comes to cable, consumers increasingly are missing the value."
My Take on the Issue
Count me among the other 85 percent. I have little to complain about when it comes to the reliability and speed of my cable Internet connection (it has topped 11Mbps down at times and usually comes in around 8Mbps), but I pay dearly for it. DSL isn't feasible for me, despite my living in Chicago, due to the lousy infrastructure in my neighborhood and the distance I live from the nearest central office. I'd like to have other options in terms of speed, price, and other amenities such as a fixed IP address, but that just isn't in the cards at this time....