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Economic Meltdown and Market Maturity Force Vendors to Step up Marketing in the North American Residential Broadband Services Markets - New analysis from Frost & Sullivan, North American Residential Broadband Services Markets Tracker, finds that the market earned revenues of over $36.7 billion and estimates 78.9 million subscribers in 2008
Economic Meltdown and Market Maturity Force Vendors to Step up Marketing in the North American Residential Broadband Services Markets

 

NewswireToday - /newswire/ - Mountain View, CA, United States, 2009/07/21 - New analysis from Frost & Sullivan, North American Residential Broadband Services Markets Tracker, finds that the market earned revenues of over $36.7 billion and estimates 78.9 million subscribers in 2008.

   
 
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The crumbling economy and rising competition from cable and telco companies combined to make 2008 a year of uncertainty for the North American residential broadband services market. Due to the bleak economic scenario, housing dipped to new lows and vacancy rates increased. Access lines are dropping swiftly, but revenues are offset by high-speed Internet subscribers as well as video. Strained by the impact of the overall economic conditions and market maturity, the residential broadband market growth rate is on a decline.

New analysis from Frost & Sullivan (ipcommunications.frost.com), North American Residential Broadband Services Markets Tracker, finds that the market earned revenues of over $36.7 billion and estimates 78.9 million subscribers in 2008.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, please send an email to Jake Wengroff, Corporate Communications, at jake.wengroff[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

"The saturated market has encouraged cable, telco, and satellite operators to concentrate on customer value, and heavy emphasis is placed on retaining existing customers and obtaining new ones," says Frost & Sullivan Research Analyst Gina Villanueva. "Providers are strengthening their retention efforts by invigorating customer value through service bundling to create an alluring price for consumers and generate a higher attach rate for the provider's services."

Bundling packages enable companies to acquire access line subscribers. Besides bundling, providers are promoting two-year price guarantees, and some are offering lifetime price guarantees. They are rejuvenating customer service and training employees to efficiently resolve queries. Cable and telco operators are reducing contract rates with customers to provide optimized services without frustrating their subscribers.

Vendors are also unleashing a slew of new, value enhanced products to reinforce their hold on the customer base. Furthermore, operators are optimizing their networks to speeds of up to 100 Mbps, creating a variety of options for broadband Internet packages. Though slower net additions to both cable and telco operators are expected during 2009, subscribers will benefit from higher speeds, more robust features, and lower prices. This will help oil the wheels of the market and guarantee a steady revenue stream for participants.

Cable still holds its position as the technology leader in the broadband segment, although its market share declined due to the advanced technologies for telcos, such as FTTx, which has increased its market size during the past two years. For the fourth quarter 2008, Verizon posted the highest net additions compared to that of all other providers in North America.

At a technology level, DSL providers' growth rates will witness a downslide year over year as subscribers migrate to higher bandwidth fiber technologies. Satellite is a growing market in small towns, rural markets, and cities where terrestrial broadband is nonexistent.

Fiber technology is the weapon used by traditional telecommunication providers to counter cable operators' deployment of their next generation DOCSIS 3.0.The Canadian market is a growing market, offering huge potential. Similar to the U.S., Canadian telco operators have unleashed their fiber optic networks to compete with cable providers that offer speeds up to 100 Mbps downstream.

North American Residential Broadband Services Markets Tracker is part of the Communications Services Growth Partnership Service program, which also includes research in the following markets: Broadband, Wireline, and Broadband Services. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.

North American Residential Broadband Services Markets Tracker / N526

 
 
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Economic Meltdown and Market Maturity Force Vendors to Step up Marketing in the North American Residential Broadband Services Markets

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Frost & Sullivan |
Publisher Contact: Jake Wengroff 
210.247.3806 jake.wengroff[.]frost.com
 
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