Broadband users want more for their money
The survey conducting by Yankee Group, an IT research company, found that more customers (21%) have either switched providers or left their current broadband providers in 2005. The numbers are up from 17% in 2004.
Broadband users from the UK, Germany, France, Italy and Spain formed part of the survey with an even spread of around 20% of the respondents from each country.
Other broadband consumer trends that came to light were that nearly 70% of multi-PC homes now own some kind of home networking solution and that more than half of all broadband users are interested in next-generation TV services.
Broadband service providers (BSPs) and other service providers that provide communications and entertainment to the connected home are challenged with preventing churn.
"BSPs need to explore ways to beat price-based competition," said Jonathan Doran, Yankee Group, senior analyst, Broadband & Media Europe. "BSPs can avoid this battle by paying close attention to consumer desires including value-added services, enhanced benefits and new features."
In South Africa many of these value-added services are only just beginning to enter the market.
Telkom has announced that they are currently testing IPTV services and many of the mobile service providers are beginning to realise the importance of providing content to customers.
A big hindrance to the South African broadband market, regarding value-added services, is the huge expense associated with local and international international bandwidth.
Most of these services like triple play and IPTV require a lot of bandwidth and with South Africans having to pay a premium these services are currently not affordable to the man in the street.
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