Electric utilities that offer broadband over power lines (BPL) may
find customers eager for low-cost, high-speed internet access, but they are
also likely to have mixed feelings about signing up with their utility,
according to a new market research study from Platts, the energy information
division of The McGraw-Hill Companies.
"Nearly one-quarter of residential customers in our survey said they
would be very interested in BPL if their utility could beat the price of
broadband internet alternatives," said Michael Reid, a
research director at Platts. "But interest dropped sharply when we
introduced specific price points. At $29.95 per month-below typical prices for
internet access via cable or DSL-only
9 percent were still very interested ." Platts studied consumer reaction
to BPL price points ranging from $19.95 to $59.95 per month.
Platts' findings are based on a geographically stratified sample of 1,000
residential utility customers from across the U.S. and Canada who were
surveyed by phone. In addition to gathering data on the penetration of home
internet service and broadband service in particular, Platts explored
residents' satisfaction with incumbent internet service providers (ISPs),
their views of their utility as a potential ISP, and their interest in phone
service over broadband connections (Voice over Internet Protocol).
Utilities will need to strengthen customer confidence in their ability to
deliver BPL efficiently and economically. When asked how they thought BPL
would rate on such attributes as reliability, customer service, and technical
support, customers gave their utilities moderate to low scores. Customers are
also skeptical about their utility being able to offer broadband service at a
competitive price.
"One step utilities can take is to team with an established national
ISP," says Marni Stein, market research manager with
Platts. "More than one-third of the customers who are interested in
BPL said they would be even more interested if their utility offered BPL in
partnership with a major internet provider."
Platts' study, "Broadband over Power Lines: The Voice of the Residential
Customer," is part of a suite of E Source research services that focus on
retail energy markets, customer programs, and technologies. Study deliverables
include a comprehensive analytical report, a private consultation, and
complete electronic data sets in multiple formats that enable subscribers to
drill down for additional insights by region, household characteristics, or
PRIZM NE(R) geodemographic segments.
Platts is the world leader in providing energy information. For nearly a
century, Platts has helped to enable ever-changing global energy markets
enhance their performance through such offerings as independent industry news
and price benchmarks. From 14 offices worldwide, Platts covers the oil,
natural gas, electricity, nuclear power, coal, petrochemical and metals
markets. Additional information on Platts real-time news and price assessment
services, publications, databases, geospatial tools, conferences, magazines,
research and analytical services and energy financial services is available at
http://www.platts.com.
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