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07.24.09 Americans Value Broadband Highly  By Mike Sachoff Consumers receive more than $30 billion of net benefits from the use of fixed-line broadband at home, with broadband increasingly being viewed as a necessity, according to a new study by Compass Lexecon, conducted on behalf of the Internet Innovation Alliance. The report estimates that the benefits of an increase in broadband speed from 100 times the average speed of dial-up Internet service to 1,000 times dial-up are on the order of $6 billion per year for existing home broadband users. Households perception of higher-speed broadband depend on their experience with broadband: those who are connected to broadband at home value higher speeds over 40 percent more than those who only home dial-up connections. "What this study does for the first time is quantify the recent increases in value that Americans place on, and derive from, their broadband connections, amounting to some $32 billion per year in consumer benefits," said Jonathan Orszag, senior managing director at Compass Lexecon.
"The increased value consumers place on broadband at home corresponds to a changing perception over time by users, with home broadband increasingly seen as a necessity for which people will find a way to pay." The study also found that broadband Internet access is valued highly by all ethnic groups. While there are significant differences in broadband adoption rates by ethnicity, among those who purchase broadband at home, there is no significant difference between how much African-Americans, Caucasians and Asians value broadband Internet service. "Broadband is one of the great equalizers, and it's encouraging to see that taking advantage of the value that broadband access has to offer is now equally important to minorities," said Larry Irving, co-chairman of the Internet Innovation Alliance. About the Author: Mike is a staff writer for WebProNews. |
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