Telework from home is most significant driver for consumer broadb...

Telework from home is most significant driver for consumer broadband, new Commerce Dept. (DoC) Technology Administration (TA) report on broadband demand said. Online game-playing and music also show promise for demand, said report titled Understanding Broadband Demand. It said health and education applications also could spur demand for broadband because high speeds are essential for many of those applications. Report said demand for broadband was “robust” and twice said: “For broadband, the sky is the limit and it is not falling yet.” While lack of demand and price often are cited as major barriers to consumer adoption of high- speed Internet access, it said concerns about convenience and confidence also played role. “Stories of dissatisfaction with service providers are legion, with some complaining that companies make you wait at home all day or require multiple trips to install the technology effectively,” report said. It cited study that showed 51% of broadband users said they had encountered problems with service and support and 90% said they didn’t have enough confidence to purchase additional services. Concerns about privacy and security, and problems with spam (especially pornographic spam) also were curtailing consumer broadband adoption, it said. Business broadband users share same concerns over cost, convenience and ease of use, report said, with many businesses failing to see a return on such investment. Market forces are more likely than govt. action to accelerate broadband demand, report said, but govt. can take steps to “create an environment that supports innovation and demand in broadband markets.” Those steps include: (1) Supporting business investment in broadband equipment through actions such as creating favorable depreciation schedules. (2) Supporting R&D through vehicles such as tax credits. (3) Using e-govt. to help create compelling content. (4) Protecting intellectual property, which could help increase the pace with which movies and music moved online. (5) Opposing taxation of new content and services. (6) Promoting consumer confidence and cybersecurity. (7) Promoting efficient management of radio spectrum to create wireless technologies that could deliver broadband. Report also said state and local govts. should “consider bandwidth” when addressing rights-of-way, taxes, zoning, franchise agreements and other actions. Positively Broadband campaign said it agreed with report that speed was not enough to attract customers. “The public needs to see the right combination of price, performance and useful new applications in order to embrace this technology,” the Positively Broadband campaign said. The growth of online gaming could help increase demand, report said. It cited Aug. research by the analysis group Datamonitor forecasting online game market would grow to $2.9 billion in 2005 from $670 million in 2002. Report also said Nielsen NetRatings had found that online gaming sites attracted more than 28 million visitors in U.S. in April and said “new broadband-based gaming consoles such as the Xbox are certain to increase consumer demand for higher speeds.” Meanwhile, it said “at least one analyst points to online gaming as one of the greatest contributors to Korea’s broadband leadership. Even more compelling for consumers would be movies, music and games delivered online -- entertainment on demand or interactive media.”