Survey: ISPs Predict High Revenue from Business Community
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Internet Service Providers believe most of their projected revenue growth will come from business customers, according to the results of a recent survey.
The results show that ISPs expect an 86% growth rate from 1997 to 1998. Close to 128% of this growth rate is projected to come from the business sector and 66% from residential consumers, even though currently most of their existing customer base is residential. ISPs earn $33.95 per business subscriber versus $13.50 per residential consumer.
In addition, ISPs responding to the survey reported that business customers are less likely to cancel their subscription--with a 1.6% cancellation rate--as opposed to a 3% drop-out rate for residential subscribers.
Furthermore, ISPs reported an increase in marketing efforts, with 66% focusing their campaigns in the educational sector, 34% the government, and 31% other groups.