Tuesday, May 31, 2011

Broadband Choices Tend to Be Rational, No Matter What Experts Say

People often buy products, or use those products in ways not originally intended. People also sometimes buy products experts think they should not buy. Consider the matter of broadband access. Virtually all studies suggest that fixed line access “works better” than terrestrial wireless, mobile broadband or satellite broadband, whether the measure is peak throughput or latency.

But all the evidence suggests that people continue to buy mobile broadband and satellite access services. In fact, there is evidence from the United Kingdom that significant numbers of people in the U.K. market buy mobile broadband access in place of fixed access, even though the mobile service has limitations, compared to fixed access.

One has to assume consumers are illogical, or that they mostly are buying products based on overall utility, and that value is not defined by top download speed or even latency.

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