Posted by: Ann Treacy | December 6, 2012

What’s broadband worth to Minnesota non-adopters? $20

Connected Nation has been working on determining the optimal subsidy to offer non-adopters to encourage them to get broadband. Their report (Let’s Make A Deal: Price Sensitivity and Optimal Subsidies Among Broadband Non-Adopters) highlights the process they used to recognize that 39 percent of non-adopters indicate that price is a factor. A monthly price that seems acceptable to most non-adopters is $21. The average cost of broadband is $46.30. So to encourage new subscribers Connected Nation seem to be promoting subsidies of $25.30.

They also provide a Minnesota version of the suggested prices and subsidies:

  • 30 percent of non-adopters are willing to subscribe at “acceptable price”
  • $49.46 – average monthly cost of broadband
  • $20.00 – most acceptable cost
  • $29.46 – subsidy required to facilitate that cost

That’s the Reader’s Digest version. Below is a graph related to telephone survey response concerning broadband monthly charges. Together they sort of tell the story.

vopp

There are some caveats. Connected Nation only surveyed seven states. There is fluctuated based on a range of demographic characteristics. The following were characteristics that seem to have an impact on interest in broadband at an acceptable price: children at home were most interested, younger respondents were most interested, retired respondents were least interested.


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