USAGE-BASED BILLING may help broadband service providers that are struggling to get consumers to equate the value of their online experiences with the value of their broadband service, according to a new report by Cisco.
With usage-based billing (UBB) still in the experimental phase in the U.S, Cisco’s Internet Business Solutions Group conducted a survey of broadband users in the United States, Canada, France, and Italy to determine current consumer views on UBB policies and approaches.
Key highlights include:
– The majority of consumers believe that UBB for fixed broadband is unfair: Canada (72%), United States (71%), Italy (74%) and France (86%). However, the majority (58% in Canada) of consumers say they never think about it, as it does not affect their bill.
– Consumers who are likely to use more broadband (i.e. early adopters, consumers with Internet video devices, and younger consumers) are more likely to view usage-based billing as fair.
– In Canada, approximately 31% of users report reducing general online usage to avoid additional charges and 56% reduce online video usage.
– When asked more specifically about unlimited broadband for online video usage, 22% of users in Canada and 26% in the U.S. say they would pay more for unlimited broadband, representing an opportunity for ISPs to increase ARPU.
