Consumers Choosing DSL Over Cable

The majority of consumers are choosing DSL over cable for their high speed service, but a greater percentage of cable users are satisfied with their broadband service according to recent findings from The Strategis Group. Of the 55 percent of current broadband users who have a choice between DSL and cable modems, 60 percent are choosing DSL services, said the firm in the report, Broadband Users: Cable Vs. DSL.

Despite DSL’s popularity, though, a greater percentage of cable modem users than DSL users are satisfied with their service based on several measures: overall quality, access speed and “always on” connectivity.

For example, the study found that 48 percent of cable modem users are “extremely satisfied” with their service, compared to 43 percent of DSL users. The contradiction between cable modems’ higher satisfaction scores and DSL’s popularity “indicates the superior marketing of DSL compared to cable modems,” said Strategis Group analyst Keith Kennebeck. “Since more people know about DSL, more people demand it.”

The Strategis Group also found that cable modems’ higher level of satisfaction led to a lower churn rate compared to DSL. Potential churn among DSL users is nearly twice as high as that of cable modem users, 15 percent versus 8 percent.

“Therefore, while DSL providers may acquire more customers due to their superior marketing efforts, they may eventually lose a higher percentage of customers to other DSL providers or to other access technologies than their cable modem counterparts,” said James Mendelson, a director for The Strategis Group.

The new study is based on the survey responses of more than 1,600 broadband subscribers nationwide. The publication looks not only at comparisons between cable modem and DSL users, but at overall broadband user characteristics, such as income, years of Internet experience and usage patterns.

Among the publication’s other key findings are that broadband access increases Internet usage, reduces churn, changes Internet activities, and drives e-commerce

The Strategis Group, with offices in Washington, D.C., London, Singapore, and Sao Paulo, publishes in-depth market research reports, provides customized consulting services, and supplies continuous information solutions to the broadband, wireless, cable TV, satellite, Internet and competitive telephony industries.

The company is located on the Web at http://www.strategisgroup.com.