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TMCnews Featured Article


June 29, 2009

Broadband Safest, PPV Most Exposed, as Consumers Economize

By Gary Kim, Contributing Editor


A new survey sponsored by Alcatel-Lucent (News - Alert) suggests that global consumers, though cutting discretionary spending in nearly every area, as significantly less likely to reduce spending on a broad range of communications services, ranging from broadband access and landline phone service to mobile service.

 
Pay-per-view movies downloaded from the Internet face the greatest risk of reduction.
 
Respondents indicate their spending on VoIP and multi-channel video services will remain unchanged. But mobile data service appears to be the communications service in greatest danger of reduced spending.
 
Much now depends on general economic trends. As you might expect, respondents say that if the global economy does not improve, 35 percent of consumers plan to reduce spending on network-based services.
 
These cutbacks will increase dramatically if the downturn gets worse, as you also would expect. Some 71 percent of respondents globally say that further cuts are possible if the economy does not improve.
 
Conversely, when the economy improves, 29 percent of consumers plan to increase their spending on network-based services. Though it remains to be seen whether respondents will follow through on their stated intentions, 13 percent say they still plan to make cuts in communications spending even when the economy improves.
 
Among the changes consumers say they are looking at are shifting away from fee-based services to free alternatives, such as free video and VoIP services, when they can.
 
Others say they will communicate more often using email and text messaging, rather than wireless voice communications.
 
Others say they are looking at prepaid voice plans rather than post-paid plans. Yet others say they will look at bundled service packages that offer substantial discounts.
 
 

Gary Kim (News - Alert) is a contributing editor for TMCnet. To read more of Gary’s articles, please visit his columnist page.

Edited by Stefania Viscusi


 




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