Test Your Connection
Speed Now
Home > News > J.D. Power Study Shows High-Speed Internet Overtakes Dial-Up Connections

J.D. Power Study Shows High-Speed Internet Overtakes Dial-Up Connections

November 10, 2008


By Mike Peters

According to a recent J.D. Power and Associates study, high-speed Internet service has overtaken dial-up Internet connections for the first time. The study cites high-speed Internet's declining cost and the need for faster connection speeds as a key factor.

Consumers Opt for Faster Speeds and Decreasing Rates of High-Speed Internet

The study also finds that 56 percent of residential ISP customers subscribe to high-speed Internet service. Correspondingly, market share of dial-up service has dropped to 44 percent. This trend is expected to continue, as the intent to switch service providers among dial-up customers has increased.

Bundling Cable, Phone, and High-Speed Internet Services

"Although high-speed Internet service is still more expensive than dial-up, bundling high-speed with other products, such as telephone and video service, has made it an increasingly attractive option for many customers," said Steve Kirkeby, executive director of telecommunications and technology research at J.D. Power and Associates.

"This is not to say that dial-up services are completely out of the picture, as dial-up still holds a significant portion of the market. More specifically, customers are often willing to pay more for faster Internet speeds, provided they are getting other services for less. Our research shows that customers are increasingly expecting offerings and incentives that recognize their loyalty, and high-speed Internet is a critical piece of the most attractive bundled offers."

About J.D. Power and Associates

Headquartered in California, J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training, and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.