Realty Times March 7, 2002

Households Want Broadband Access, Services
by Broderick Perkins

A new report on the demand for broadband Internet services that don't widely exist should be a wake up call for cable, satellite, digital subscriber line (DSL) and other Internet broadband system builders dragging their lines to wire households with fast Internet access.

Build a high-speed information superhighway to the nation's homes, deliver educational and entertainment services on a multimedia telecommunications platform and not only will households come to accept it, they'll make such a system a $25 billion industry.

In another example of the wealth potential that flows from households, Natick, MA-based Sage Research says the nation's households hanker for a host of broadband services from entertainment to telecommuting services and that they don't mind paying for it.

Unfortunately, the nation's current broadband Internet system is a patchwork quilt filled with holes that prevent most households from enjoying special high-speed Internet services.

"What is not so clear is when the combination of regulatory, technical, and market dynamics will converge to allow broadband access become truly ubiquitous," Sage reported.

Sage says more than half the nation's households have at least one person with Internet experience and are at a such a comfort level with information technology they are ready and open for services at speeds that are not now widely available.

Broadband Demand Potential
Service CategoryHouseholds
Entertainment44%
Communications42%
Education39%
Personal Services35%
Hobbies30%
Health24%
Telework17%

Source: Sage Research

In December 2001, in a study commissioned by Internet networking giant, San Jose, CA-based Cisco Systems, Inc., Sage gathered data from 600 U.S. households to identify broadband service demand.

In each category, here's what consumers want streaming across high speed lines to their homes.

  • Entertainment. Simulation games, kids' activities, TV show simulations, music libraries, online gambling, TV shows on demand, movies on demand, concerts, and cultural events.

  • Communications. Video conferencing, messaging, and telephone services.

  • Education. Language, music, cooking and continuing education and multimedia encyclopedia access.

  • Personal. Online clothes shopping, counseling/psychiatric, legal advice, marriage/parenting advice, home/auto care advice, multimedia travel planning, investment advice, online dating and online photo editing/printing/storage services.

  • Hobbies. Multimedia services for sports fans, cooking lovers and fitness buffs, interior decorating services and access to religious services/resources.

  • Health. Video monitoring child day care, older relatives' care facilities, and home health monitoring.

  • Telework. Access to employers' networks and unified messaging for work purposes.

    "If we want to realize the $25 billion opportunity, we must have broadband access to the home; and as is, the current outlook for ubiquitous broadband access is still quite foggy," Sage said.



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