New NPD Report, AccessTraxxSM, Helps
ISPs Understand the Dynamics of the Residential Marketplace
PORT WASHINGTON, NEW YORK, June 12, 2001
– According to
NPD AccessTraxxSM, a new report for Internet Service
Providers from leading market research firm The NPD Group, Inc., the
Western region of the United States leads the nation in broadband
penetration at 22% of Internet accessible households. Current
penetration is evenly divided between DSL and cable. Furthermore,
53% of current residential dial-up subscribers in the Western region
of the United States say they are likely to switch to a broadband
technology in the next six months. (See chart below.)
How strong is the interest in broadband among residential
customers?
(Western Region Only)
|
Interest in Broadband |
% of Customers |
| |
|
|
High or Moderate |
53% |
|
Low or None |
47% |
Which technology are residential customers interested in
acquiring?
(Western Region Only)
|
Technology |
% Interested in Acquiring |
| |
|
|
DSL |
32% |
|
Cable |
26% |
|
Indifferent to Access Technology |
42% |
NPD AccessTraxx helps ISPs understand how to price their access
technologies more appropriately and improve their customer
acquisition rates while reducing subscriber turnover. According to
NPD’s Lisa Maguinness, manager for New Business Development, "Although
broadband access is appealing to residential customers, the higher
monthly charge compared to their current dial-up service is a
significant barrier to switching. It will be interesting to see what,
if any, marketplace changes occur due to AOL’s increase in their
service charges for dial-up access."
NPD AccessTraxx is divided into three sections:
- Market Overview – discusses local or regional technology
marketshare among dial-up modems, DSL and cable plus the ISPs most
often used.
- Market Dynamics – provides a consumer purchase model that
demonstrates how consumers become familiar with high-speed
Internet access and how they are predisposed to switch to each
type of service.
- Market Outlook – illustrates where the market is headed for
DSL and cable access providers. Shows which consumers are inclined
to switch to each type of service, the fee they’re willing to pay,
and the opportunities and vulnerability of each service.
At this time, AccessTraxx is available for West Coast, Mountain
and Pacific states. Cities covered include: Denver; Sacramento; Los
Angeles, San Diego; San Francisco; Seattle, Phoenix; Portland. NPD
anticipates that this will be the first in a series of reports
covering each region of the country.
|
