In November 2004 Ericsson released the results of its Death of Dial-up study. With the support of the Melbourne Business School, Ericsson commissioned a study in Australia and New Zealand to identify the date when the number of broadband Internet subscribers will overtake dial-up subscribers.
The study predicted that more than 50% of Australian Internet users will have rejected dial-up and moved to broadband by mid-2006. In New Zealand, broadband will overtake dial-up in early 2007.
As anticipated, the key drivers for switching to broadband in both Australia and New Zealand include the higher data transfer speeds and stopping the Internet blocking the phone line. Previous experience of broadband is another apparent driver. The research showed that consumers also consider the cost of monthly fees as the most important factor when choosing a broadband connection. Installation fees and download limits are moderately important, while contract length and charges for excess downloads are less important.
A key to structuring broadband packages lies in offering affordable broadband subscription fees without overly restrictive download limits.
The majority of broadband subscribers use the Internet more often since switching to broadband from dial-up. On average, Australians spend 17 hours per week if using dial-up access, but 23 hours per week if they are on Broadband. In New Zealand, the average for dial-up users was 19 hours per week, while Broadband users averaged 22 hours per week.
Australian and New Zealand broadband subscribers noted downloading music and films/video as a popular activity following the move to broadband. Instant messaging and online games are also prominent. The survey showed us that once users switch to broadband, they won’t go back to dial-up.
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