Table of Contents
- Scope and Themes
- What you need to know
- Definition
- Consumer data for this report
- Market size and segmentation data
- Forecast factors
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- Highlights
- Market maturity nearing
- Consumers becoming more sophisticated about Internet usage
- The impact of a shift to laptops
- The decline of dial-up
- Connectivity advancement
- Trends in advertising and promotion
- The need for speed
- Changing service
- Market Factors
- Drivers and trends
- PC penetration moving slowly and favoring laptops
- Reaching the unconnected
- The PC population that does not use the Internet
- Manufacturer bundling to reach new PC homes
- Reaching new households
- Speed and spend
- A future in fiber
- Expectations for more reliable access
- X-play bundled services offer savings and convenience
- Consolidation of billing
- Figure 1: Multiple-bill dissatisfaction, February 2007
- Entertainment, communication, and other "killer applications" demand
higher speed
- Figure 2: Use of the Internet for work and entertainment (games, music,
video, and IM), March 2007
- Video telephony
- Competition from free and low-cost commercial and municipal service
- Future trends
- Television: the ultimate killer Internet application
- Competition from 3G and WiMAX
- Cheaper DSL and cable
- Exclusive content and virtual ISPs
- Premium service is reliability
- Security improvement will allow consumers to resell bandwidth
- Figure 3: Concerns over security, February 2007
- Faster DSL and cable
- New pricing paradigms
- Net neutrality
- Market Size and Segmentation
- Subscriptions
- Figure 4: Households with Internet subscriptions, 2003-07
- Figure 5: Households by type of service, and presence of a peronsal
computer, 2003-07
- Figure 6: Households by type of service, and presence of a peronsal
computer, 2005 and 2007
- Sales
- Figure 7: Total U.S. ISP subscriber revenues, at current and constant
prices, 2003-07
- Market forecast
- Figure 8: Forecast of total U.S. ISP subscriber revenues, at current and
constant prices, 2007-11
- Market segmentation
- Figure 9: ISP sales, segmented by connection type, 2005 and 2007
- Figure 10: Graph: Forecast of segment share by value, 2012
- Dial-up
- Figure 11: Annual service revenue, dial-up, at current and constant
prices, 2003-07
- Cable
- Figure 12: Annual service revenue for cable broadband, at current and
constant prices, 2003-07
- DSL
- Figure 13: Annual service revenue, DSL, at current and constant prices,
2002-06
- ISDN, fiber and other
- Figure 14: Annual service revenue, other broadband, at current and
constant prices, 2003-07
- Supply Structure
- Introduction
- Figure 15: Supplier share, by subscriptions, 2005-06
- Figure 16: Internet service pricing, May 2007
- Figure 17: Supplier revenues in the U.S., 2005 and 2007
- Cable round-up
- Dial-up roundup
- DSL round-up
- Other broadband roundup
- Cellular providers not yet leveraging full weight
- Figure 18: AT&T mobile + wireless ad
- Advertising and Promotion
- Introduction
- Adspend
- Figure 19: Media expenditures by leading ISPs, 2005 and 2006
- The fight for AOL' s customers--price competition
- PeoplePC
- Figure 20: PeoplePC advertisement
- NetZero
- Figure 21: NetZero advertisement
- Figure 22: NetZero advertisement
- Figure 23: NetZero advertisement
- Capturing the dial-up tone
- Speed competition among other providers
- Competition based on content
- Figure 24: AT&T Yahoo! High Speed Internet advertisement
- Figure 25: AT&T advertisement
- Competition based on security
- Figure 26: Netscape reality television spoof advertisement
- Customer service
- Connection reliability
- Bundled service ads--a step in the wrong direction?
- Figure 27: AT&T with free dish TV for one year advertisement
- Figure 28: Comcast advertisement
- Figure 29: Time Warner advertisement
- Figure 30: Optimum Cablevision triple play ad--save $500 advertisement
- Figure 31: Cablevision advertisement
- Cable ISP ads
- Comcast Cable
- Figure 32: Comcast advertisement
- Time Warner Cable
- Figure 33: Time Warner advertisement
- Charter Cable
- Figure 34: Charter advertisement
- RCN
- Figure 35: RCN advertisment
- DSL ads
- AT&T
- Figure 36: AT&T advertisement
- Figure 37: AT&T advertisement
- Verizon
- Figure 38: Verizon advertisement
- Figure 39: Verizon advertisement
- AOL (DSL)
- Figure 40: AOL advertisement
- EarthLink (DSL)
- Figure 41: EarthLink DSL advertisement
- Bell South
- Figure 42: Bell South Advertisement
- FiOS
- Figure 43: Verizon FiOS advertisement
- Preparing for the next stage in ISP advertising
- How Consumers Connect to the Internet
- Summary
- On the home desktop
- Figure 44: Use of dial-up, selected demographic segments, March 2007
- From laptops
- Figure 45: Laptop connection classification, March 2007
- Figure 46: Laptop connection classification, selected demographics,
March 2007
- Why some respondents continue to use dial-up
- Desktop users
- Figure 47: Why desktop dial-up users do not switch to broadband, March
2007
- Laptop users
- Figure 48: Why laptop users do not switch to broadband, March 2007
- What Internet Service is Used For
- Summary
- Use of the Internet for work, games, music, video, and IM
- Figure 49: Use of the Internet for work and entertainment (games, music,
video, and IM), March 2007
- Figure 50: Use of the Internet for work and entertainment, by age, March
2007
- Figure 51: Use of the Internet for work and entertainment, by household
income, March 2007
- Figure 52: Use of the Internet for work and entertainment, by
race/ethnicity, March 2007
- Selecting and Changing Service
- Summary
- Who selects service, service interruptions, and recent changes in service
- Figure 53: Who selects service, service interruptions, and recent
changes in provider, March 2007
- Figure 54: Service selecton and service interruption, by age, March 2007
- How consumers research a service change
- Figure 55: Research before selecting an ISP, March 2007
- Figure 56: Research before selecting an ISP, by age, March 2007
- Figure 57: Research before selecting an ISP, by race/ethnicity, March
2007
- Figure 58: Research before selecting an ISP, by educational attainment,
March 2007
- Primary reason for selecting an ISP
- Figure 59: Most important ISP decision factor, March 2007
- Figure 60: Most important ISP decision factor, by current type of
service, March 2007
- Interest in add-on services
- Figure 61: Interest in add-on services, March 2007
- Figure 62: Interest in add-on services, by age, March 2007
- What makes a service sticky
- Figure 63: Satisfied ISP customers, March 2007
- Figure 64: Satisfied ISP customers, by age, March 2007
- Figure 65: Satisfied ISP customers, by income, March 2007
- Why consumers switch
- Figure 66: Reasons consumers changed ISPs, March 2007
- Figure 67: Reasons consumers changed ISPs, by type of current
connection, March 2007
- Appendix: PC Ownership
- Figure 68: PC ownership, January -- October 2002-06
- Figure 69: PC ownership, by age, January -- October 2006
- Figure 70: PC ownership, by race/ethnicity, January -- October 2006
- Figure 71: PC ownership, by household income, January -- October 2006
- Figure 72: Computing platforms, by marital status, January -- October
2006
- Appendix: Trade Associations
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