Many Internet users would pay a higher
monthly service fee to their current Internet service provider rather than
switch ISPs, according to a study from The Strategis Group.
In the current edition of “Internet Users Trends,” home Internet users
currently pay an average of
$18.83 per month for Internet access. More than half of the customers
surveyed said they would rather pay $4 or more per month than switch
providers.
“Despite large-scale customer churn and competition, a substantial portion
of users would rather not switch providers,” said Matt Page, director of
Internet consumer research at The Strategis Group. “More importantly, an ISP
may need to (set prices) 20-30 percent below market rates to lure
competitors’ customers.”
The study also found that 63 percent of Internet users have
never changed their ISP and that 88 percent of home users did not
anticipate changing or discontinuing service in the near term. Further, only
5 percent of home Internet users indicated any dissatisfaction with their
current provider.
“It is clear from our research, that the majority of customer churn for
ISPs has been related to a minority of customers who switch multiple times,”
said John Zahurancik, Strategis Group director of Internet and telephony.
“Customer loyalty does exist with regard to the Internet access business.”
Internet User Trends is based on a nationally representative survey sample
of more than 1,700 households, including more than 500 Internet users. The
report provides Internet user and non-user profiles as well as information
about the growth of the Internet market, Internet usage trends and online
purchasing behavior.
