Close To Half Of Americans Would Drop Mobile Plans

Home broadband seen as vital

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Faced with the need to cutback on household expenses, forty-eight percent of Americans would drop their mobile data plan completely, while only 10 percent would cancel their home broadband subscription, according to new research by Strategy Analytics.

"Given the extraordinary importance consumers place on home broadband, we fully expected broadband to have a high ‘keep rate,’" said Ben Piper, Director of the Strategy Analytics Multiplay Market Dynamics Service. "What surprised us was the vulnerability of mobile services."

In the same situation, 12 percent of Americans said they would drop their pay-TV service completely, while 41 percent said they would switch to a less expensive subscription plan. More than half (56%) of respondents said they would make no changes to their home fixed voice service, compared to 51 percent for mobile voice.

Strategy Analytics

"These results suggest that, while American consumers consider home broadband service to be a vital utility, they see mobile data service as simply a ‘nice to have,’" said David Mercer, Vice-President of the Strategy Analytics Digital Consumer Practice.

The study, conducted in early June, surveyed 1,110 household decision makers about their multiplay spending intentions over the next year, the impact of the economy on household entertainment purchases, and the relative importance of each component.

Close To Half Of Americans Would Drop Mobile Plans
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  • Joseph

    Hi Mike,

    You know whats interesting, Is that I just saw a program on TV saying that Verizon wireless was going to spend like BILLIONS on a 4G network….

    Is that a bad move on there part with these stats above?

    What do you think?

    Thanks for the write up, and I look forward to your response,


  • Guest

    If the wireless providers simply offered a good service, that didn’t have such a low (5GB/mo) cap, gave a reasonable downstream bitrate (>2Mb/s), and cost less than $80/mo, you’d see much different stats up there. People hate caps. People hate dog slow connectivity. The mobile Internet uptake revolution hasn’t happened because the tether hasn’t been cut yet. The current offerings are just not viable as a replacement for wireline as wireless voice has been for several years.

  • http://www.bestbuyidea.com/ Altis Lo (Beaulife)

    I totally agree with the comments in People hate slow, capped services, it’s still the same in Malaysia. I feel that plans with ‘pay per use’ shall be the best, as there will not be any commitment. But telco will be charging higher price. In Malaysia, the demand is higher than supply, and the supply definitely sucks with slow and capped services for broadband.

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