Uncommon Wisdom

Aug 16 2010   12:23PM GMT

FTTH customers happier than DSL and cable — but at what cost?

Tom Nolle Tom Nolle Profile: Tom Nolle

Probably to no one’s surprise, FTTH customers are happier with their service than cable or DSL customers, according to some recent research commissioned by the FTTH Council. While the source (and insight) of the story are in doubt, we think that the results really do reflect user attitude.

Our own research suggests that FTTH users are happier about just about every aspect of their service, not just the quality and performance of the Internet. Our model says that what customers pay for FTTH is only about 14% more than for cable, but the actual cost of providing FTTH nationally would likely run almost 2.2 times as high.

There continues to be a compression of buyers toward the lower end of offerings, and while people want more channels and faster Internet, they are very reluctant to pay even a modest premium to get it.

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