Laszlo explained that while some ISPs will cast a wide net to secure a large number of consumers, Jupiter believes that broadband offerings may fare well if they target their audience more narrowly. Vendors should design packages for specific user groups-such as telecommuters, active stock traders, families, and gamers. Broadband providers must offer high-value, differentiated services to prevent commoditization and price erosion. By 2005, cable and DSL services will divide the US consumer market, with cable serving 48 percent of broadband households and DSL serving 41 percent. Although specific markets in the US may see one technology or the other reign supreme, services based on both cable and on DSL will prove viable in the long run.
Consumers still cite price as the primary reason why they have yet to chose broadband service.
Pent-up demand exists for broadband services, but Jupiter data suggest that less than 10 percent of online households are in the early adopter category that will purchase broadband, regardless of cost. Get stories like these in LostRemote's free weekly email .