Consumers are 'not willing to upgrade to faster products', says CEO of broadband performance company
Broadband connections have become so fast that most consumers aren’t bothered about upgrading to even faster speeds, according to a leading internet performance company.
SamKnows measures broadband performance on behalf of internet providers and regulators around the world, including the U.S. Federal Communications Commission. With consumers increasingly shifting to fiber connections, SamKnows CEO Alex Salter says ISPs are finding it increasingly difficult to tempt customers with speed upgrades.
“If you go to the different countries where we work – Australia, Canada, the United States, Europe, Saudi Arabia, other placed in the Middle East – everyone is marketing speed,” said Salter, in the. “But consumers have moved away from that; they’re less concerned about speed.” “If you attend a focus group where consumers are asked why they might move from one ISP to another, speed just doesn’t come up anymore. They’re not willing to upgrade for faster products – they don’t see the benefit in that. We all understand that once you get to a certain speed there’s limited benefit in going faster and faster.”Instead of raw speed, consumers are more focused on the performance of specific apps, Salter claims.
“I think that consumers actually have become way more focused on application performance, and the industry is catching up,” said Salter. “Certainly, from our point of view, the majority of insights that we’re giving to people now are around application performance. Speed is less interesting to consumers.”
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