SOURCE: Pike & Fischer

June 12, 2008 07:00 ET

Broadband Internet Speeds Seen as More Important to Consumers Than HDTV and Other New Services, According to New Pike & Fischer Survey

SILVER SPRING, MD--(Marketwire - June 12, 2008) - Cable, satellite TV and now even telephone companies have been heavily promoting a variety of new services, ranging from high-definition video to movies on demand. But communications industry leaders believe the best way to attract and keep customers is by providing the fastest Internet speeds, according to a new Pike & Fischer Broadband Advisory Services survey.

The Silver Spring, Md.-based market research company conducted the survey over the spring and received more than 280 responses from executives, engineers and consultants representing the cable, telephone, satellite TV, broadcast, and technology equipment industries. Academics and government regulators in the broadband space were also represented in the survey.

Survey participants were asked to rank several advanced communications services on a scale of 1 to 5, with 5 being the most attractive to customers. High-speed data speeds received more rankings of 5 than any other service. Nearly 40 percent of the respondents ranked data rates as a top draw. About one-fourth of participants ranked HDTV service as a 5. Digital phone service received the fewest top rankings. Only 9.2 percent of participants ranked it at 5.

"This suggests to us that, while multichannel video providers may be spending a lot of their ad dollars promoting their high-def channels and their 'triple-play' bundles, they still rely on their broadband speeds to seal the deal with customers," said Scott Sleek, director of Pike & Fischer's Broadband Advisory Services. "Every one wants to claim that they offer the fastest Internet access, and believe that will be more important to customers than how many HD channels they offer."

Pike & Fischer, a BNA company, offers a host of legal and business products covering the telecommunications industry. Full survey results will be unveiled at Pike & Fischer's Broadband Policy Summit IV on June 12-13 in Washington, DC. A complimentary copy of the resulting research report, "Communications Industry Survey: Views on the U.S. Economic and Regulatory Climate," will be provided to all attendees. The report can also be purchased for $599 at www.broadbandadvisoryservices.com.

For analyst commentary or to request a briefing, contact Scott Sleek at 301-562-1530, x291, ssleek@pf.com. For information about Pike & Fischer's Broadband Advisory Services, visit www.broadbandadvisoryservices.com or contact Jonathan Wentworth Ping at 973-718-4703 / jping@pf.com. To learn more about Broadband Policy Summit IV, visit www.broadbandpolicysummit.com.

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