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Alcatel-Lucent's Market Advantage Program releases the results of a
global study confirming that 84% of consumers identified see broadband access
at home as an essential service, especially during the economic
recession.
Each day you make choices about how to spend the money you earn. In a time
of economic decline, such as the one the world is experiencing now, these
choices become more difficult. Most of us, would sacrifice almost everything
else before giving up our network services.
But in fact, broadband Internet services in particular are considered almost
recession proof, with 84% of current broadband Internet subscribers saying it
is the last item they want to eliminate when reducing their spending.
This is the discovery of Alcatel-Lucent’s Market Advantage Program which in
a recent global study assesses how the current economic recession is affecting
consumer spending. The MAP end-user study was conducted in partnership with
market research firms Penn, Schoen & Berland Associates and Ipsos MediaCT
between late December 2008 and January 2009. They surveyed more than 3200
participants from Europe, Asia, Latin America and the U.S. to determine
consumer spending priorities for specific network-based services – such as
Internet, television, data and voice services – against their spending
priorities for services that don’t require a wireline or wireless
connection.
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Global economic challenges
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- 85% of consumers have been affected by the economic downturn.
- For 21%, the impact is severe.
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- 64% plan to cut spending in 2009.
- 20% will make significant reductions.
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| Source: Alcatel-Lucent Market Advantage
Research |
What we learned: Broadband is recession proof
The negative effects of the economic downturn are being felt around the
globe. While the mood in emerging countries – such as those in Latin America –
is slightly more optimistic, consumers worldwide are increasingly concerned
about lost jobs, lost savings and the rising price of essential items such as
food. When consumers make choices, however, broadband internet is their highest
priority. It consistently tops the list of essential network services, in all
regions, and is the least likely service to be given up when consumers reduce
their spending. These households, worldwide, consider broadband internet a
“staple” rather than a luxury, making it virtually recession proof.
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