One-third of US households currently subscribing to dial-up Internet service are interested in upgrading to broadband service in the next 12 months, according to Parks Associates' latest consumer study, Bundled Services & Residential Gateways.
Additionally, 28 percent of broadband subscribers intend to purchase home networking solutions in the same period, indicating that subscriber growth for these advanced technologies will be modest but steady in the coming months.
This research supports previous forecasts offered by Parks Associates, which predicted that 10.7 million US households will subscribe to broadband service and 5.7 million households will have some form of home network deployed by year-end 2001.
"The early adopting consumer is ready to purchase networks and adopt broadband but most wait on excellent product with rational pricing," said Tricia Parks, president of Parks Associates. "It's more important than ever to have a complete understanding of what consumers want and how much they will pay."
This recent survey of 2,500 US households from Parks Associates has revealed steady demand for network connectivity solutions among multiple-PC households, which supports the firm's current forecasts for the home networking market. The report contains consumer data as well as interpretation and analysis of the attitudes and trends impacting consumer electronics; Internet service; home networking technology' home security and control services; digital video and audio services; and a number of other legacy and next-generation applications made possible by the delivery of broadband technology to the home.
"Our forecasts have always been grounded in an intimate understanding of the consumer," said Michael Greeson, senior analyst with Parks Associates. "That is in many ways what separates our research from our competitors."
The survey conducted in July 2001, also found that these consumers are most likely to seek home networking solutions based on their ability to share Internet access and peripherals first. A secondary driver for home networking includes entertainment applications.
"This latest batch of research helps us better understand the role of the early-adopter consumer and sheds new light on how home networking will evolve" said Kurt Ascherf, vice president of research for Parks Associates. "With a more detailed profile of the purchasers of home networking solutions, we are better able to build forecast models that we believe are more accurate in presenting the outlook for this market."
Parks Associates will present its latest findings on the home networking marketplace on September 4, 2001, in a special workshop prior to the Custom Electronic Design and Installation (CEDIA) Expo in Indianapolis, IN.
Led by Kurt Scherf, vice president of research, and Grayson Evans, president of the training department, the workshop is appropriate for both home networking neophytes who need a solid understanding of the networking market and industry veterans who are seeking new market opportunities.
The instructors will offer a comprehensive understanding of the customer and analyze the systems and solutions vying for shelf space, the homebuilder's perspective on structure wiring and integrated systems, and the essentials for installing and maintaining wired and wireless home networking products and systems.
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