Gigabit Broadband Improves ISP Revenues and Subscriber Growth While it might be true that nobody yet needs a gigabit connection, that doesn't mean there's not some significant benefits in deploying such services. Every so often we'll see a news outlet pooh pooh gigabit deployments; like this recent Vox report proclaiming that after many cities deployed gigabit connections, "nobody is sure what they're good for." But time and time again we've shown how gigabit broadband helps drive demand for lower speeds, and lowers the price of all service in a market for consumers.

Now a new report by Broadbandtrends (pdf) claims that operators that offer gigabit services help create a positive "halo" effect with customers that extends to other services. The survey, which polled 66 ISPs around the world, found that ISPs that deployed gigabit broadband service found that ISPs made more money simply by offering the service, and that providing the faster speeds did not create a significant, additional strain on the network. Offering gigabit also proved to be a beneficial marketing weapon to help create the impression an ISP and its brand are on the cutting edge. "Technology leadership perception and the "halo effect" it creates remains a key benefit from offering gigabit broadband, often resulting in gains in both subscribers and revenues -- even if they do not take the gigabit option," states Broadbandtrends Teresa Mastrangelo. The benefits of deploying gigabit broadband extend to both ISPs and customers alike. A new report by the Fiber to the Home Council found that in areas where gigabit service is introduced, the cost of slower tiers drops significantly. When gigabit is available, tiers of 100 Mbps or faster drop in price by as much as $27 per month, or about a 25% decline, says the group. Pricing for 25 Mbps service also decreases between $13 and $18 monthly when gigabit speeds are offered in an area, the study found.







News Jump WISPs Get CBRS Range As Great As Six Miles At 100 Mbps Speeds; Windstream Officially Exits Bankruptcy; + more news Charter Relaunches Free 60-day Internet And Wi-Fi Offer; NCTA: FCC Should Stick With 25/3 Speed Threshold; + more news Comcast Shuts Off Internet for Subs Who Were Sold Service Illegally; AT&T, Verizon Team To Stop T-Mobile 5G; + more news California Defends Its Net Neutrality Law; AT&T's Traffic Up 20% Despite Data Traffic Actually Being Down; + more news Are The Comcast-Charter X1 Talks Dead In The Water?; AT&T May Offer Phone Plans With Ads For Discounts; + more news Europe's Top Court: Net Neutrality Rules Bar Zero Rating; ViacomCBS To Rebrand CBS All Access As Paramount+; + more news Verizon To Buy Reseller TracFone For $7B; 5G Not The Competitive Threat To Cable Many Thought It Would Be; + more news MS.Wants Records From AT&T On $300M Project; Google Fiber Outages In Austin, Houston, Other Texan Cities; + more news States With The Biggest Decreases In Speed; AT&T Hopes You'll Forget Its Fight Against Accurate Maps; + more news AT&T's CEO Has A Familiar $olution To US Broadband Woes; EarthLink Files Suit Against Charter; + more news ---------------------- this week last week most discussed

Most recommended from 10 comments

Terabit

join:2008-12-19 5 recommendations Terabit Member Let the market decide We've been told for years to let the market decide, well it has decided and we like fast internet speeds but hate overpriced cable TV.