VoIP Key to Boosting Broadband Adoption

Internet telephone service could be crucial in promoting the adoption and development of broadband, according to a new white paper from Parks Associates.

For Immediate Release

Contact: Elizabeth Parks
Parks Associates
972 -490 -1113
Email: sales@parksassociates.com

VoIP Key to Boosting Broadband Adoption
Effects of FCC Regulations will be Felt far Beyond the VoIP Space

Dallas, Texas February 10th, 2004 -Internet telephone service could be crucial in promoting the adoption and development of broadband, according to a new white paper from Parks Associates. Entitled VoIP: At Last a Killer App?, the paper found the average narrowband household could capture a net savings of $8 per month if they upgraded to broadband and began using a VoIP telephone service. This service combination, the report noted, could eliminate cost as an obstacle to greater broadband adoption.

"Among narrowband households not interested in broadband, almost 60% cite price as the main deterrent," said John Barrett, analyst with Parks Associates. "VoIP changes that equation by offering an overall net savings if you upgrade to broadband."

To realize these savings, however, households would have to abandon traditional phone service completely. If a household uses VoIP service only as a second line and keeps its existing phone service, it would pay $30 more each month.

Barrett also cautioned that pricing, packaging, and FCC regulations could tip the scales one way or another. "Eight dollars is not a tremendous margin," he said. "If regulatory changes cause the cost of VoIP to increase by just a few dollars per month, the incentive to switch disappears. Most people will not go to the trouble if it saves only a couple bucks per month."

For additional information on VoIP, please contact Parks Associates at sales@parksassociates.com or 972 -490 -1113. A free copy of the white paper is available at www.parksassociates.com.

About Parks Associates: Parks Associates is a market research and consulting firm focused on all product and service segments that are "digital" or provide connectivity within the home. The company's expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.

Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start -ups through market reports, multiclient studies, consumer research, workshops, and custom -tailored client solutions. Parks Associates also hosts two executive seminars, both part of the Fall Focus series, and co -hosts CONNECTIONS™ (in partnership with the Consumer Electronics Association) each year. www.parksassociates.com.

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