DSL, right offering for budget broadband?

The lower price points (and lower speeds) of the DSL offerings from Bells have started to increase the footprint of broadband households, according to new research report prepared by Leichtman Research Group (LRG.) Average household income of broadband subscribers has fallen by 10% this year to $59,500, mostly because of aggressive price cuts by DSL providers. Cable, is becoming a preferred medium for higher income households, and LRG says that the mean annual household income of cable broadband subscribers is 17% higher than their DSL counterparts.

• Of those interested in getting broadband, 32% express a preference for their local phone company to provide broadband service, while 26% prefer their local cable company – last year, 35% of those interested in getting broadband preferred the cable company, and 23% preferred the local phone company
• Reported mean monthly spending on cable broadband service is about $40, compared to $36 for DSL – last year, cable and DSL households had nearly identical average monthly broadband spending
• The mean income of broadband subscribers is 35% greater than narrowband/dial-up subscribers

“While cable still has many more broadband subscribers than DSL, and will maintain an advantage for years to come, DSL’s emphasis on price and extended availability is clearly having an impact in expanding the category to more cost-conscious consumers,” says Bruce Leichtman, president and principal analyst for LRG