A report by management consultancy firm, A.T Kearney, reveals that when it comes to broadband and WiFi services, European consumers find the network quality, coverage and access to innovative products more important than the price they pay for it.
The report looks at the value of home connectivity specifically from the perspective of consumers. It has found that 38% of consumers value ‘collective’ benefits of their home broadband – defined as such things as coverage network quality and innovation – the most. This is followed by ‘individual’ benefits – such as speed and bundle size – which were highlighted by 33% of respondents. Only 16% of people ranked price as the most important factor. Respondents were asked how much they’d have to be paid for each of the following and the answers were ranked accordingly.
Consumers can’t live without broadband
Respondents were asked how much they’d need to be paid to give up for each of the following and their answers were ranked accordingly
Higher prices lead to more investment
Investment in broadband is higher in countries where consumers are prepared to pay more
What people value the most about their broadband
Countries with higher prices and greater investment have more of these…
In other findings, the study reveals that access to home broadband & WiFi scores either first, or is in joint first place, in six out of eight European countries when ranked against such things as holidays, chocolate, a favourite TV channel and even sex.
The report delves further into the link between price and the investment in high-quality home broadband services, concluding that there is a positive relationship between price levels, investment and benefits delivered to society. It identifies a virtuous circle where positive revenue developments through price create headroom for investment, which in turn impacts on further revenue generation. This is supported by the fact that the top 10 EU countries in terms of relative price levels outperform the bottom 10 across all proxies for what’s defined as benefits to society, that is online education, shopping, e-government services, cloud computing and big data analytics.
