Factors influencing broadband uptake in New Zealand

Summary

The global growth of electronic commerce shows that people are becoming increasingly dependent on the Internet for communications and services. The phenomenal growth of the Internet means that the Internet Service Provider (ISP) industry is growing as well. This study explores the ISP industry in NZ concentrating on the broadband residential market. User perspectives were captured by interviews and questionnaires in order to determine the factors that drive user satisfaction and the current situation of broadband in NZ.

Results indicate that user satisfaction directly reflects retention. Narrowband and broadband users have slightly different satisfaction requirements. Whereas Connectivity, Speed, Email Service and Customer Support and Service (in order) are significantly important for narrowband users, Broadband users however perceive that Speed and Customer Support and Service (in order) are the two significant importance factors.

Male, Preference for Heavy Entertainment Traffic, high General Computer Skills and preference to use longer hours on the Internet per day, are the characteristics of potential broadband users. If ISPs want to increase their broadband customer base, they should target users who fit these characteristics and improve the factors that are important to them.

The broadband market in NZ is still in its infancy, the penetration is low and the Cost barrier prevents wider adoption. The future of broadband in NZ looks good, as the infrastructure is ready. However, this will not takeoff unless price is reduced.

Key Words:

• Internet Service Provider (ISP)
• broadband
• Telco