So Much For Dial-Up's Recession-Driven Resurgence [Broadband Reports]
Despite the recessionary economic conditions, cable broadband users aren't fleeing to cheaper and slower dial-up providers. Broadband Reports cites a number of press reports that predicted that dial-up ISPs like Earthlink were going to grow subscribers during the recession due to the number of customers that would drop broadband but want to keep an Internet connection. Now that Earthlink's first quarter earnings have been released, the reality is that dial-up customers are fleeing, while broadband customers continue to grow for companies like Insight. In the first three months of this year, Earthlink lost 160,000 customers or 9 percent of its dial-up customer base.
While consumers are cutting back on luxuries as a result of the downturn in the economy, research indicates that more and more customers view broadband Internet as a necessity. According to a recent Pew Research Center study, fewer Americans consider air conditioning and microwaves a necessity now than did in 2006. It's just the opposite for broadband Internet, with more Americans considering it an essential service now than did in 2006. And as a result, most are not opting to drop their fast Internet connection in favor of a slow one to save a few bucks a month.
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