Consumers show interest in gigabit speeds but that interest does not necessarily translate to adoption, a new study by Parks Associates suggests. Consumers fail to see a compelling need for gigabit services, as few households require the performance levels of these services, the firm says.
Some 22 percent of U.S. broadband households buy a service operating with speeds ranging from 100 Mbps and 999 Mbps, the most common service tier cited by survey respondents who say they know their speeds, according to Parks Associates.
Some six percent of respondents say they buy a gigabit service.
About 39 percent of respondents do not know their broadband speed.
But Parks Associates also says interest in upgrading to that speed of service has declined over the past two years.
“Interest in gigabit speeds has declined, due partly to limited availability, but also as households prioritize cost over speed,” said Craig Leslie, Senior Research Analyst, Parks Associates. “Of the US broadband households that switched services in the past year, 50 percent did so to get a better price, while 36 percent switched to get better speeds.
“Households are not seeing the benefits to speed upgrades,” Parks Associates says.
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