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Factors influencing Broadband Uptake in New Zealand
John Paynter
Department of Management Science and Information Systems, School of Business and Economics, University of Auckland, New Zealand
Winnie Chung
Department of Management Science and Information Systems, School of Business and Economics, University of Auckland, New Zealand
Abstract
This study explores the ISP industry in NZ concentrating on the broadband residential market. User perspectives were captured by interviews and questionnaires in order to determine the factors that drive user satisfaction and the current situation of broadband in NZ. Results indicate that user satisfaction directly reflects in customer retention. Narrowband and broadband users have slightly different satisfaction requirements. Whereas Connectivity, Speed, Email Service and Customer Support and Service (in order) are significantly important for narrowband users, broadband users perceive that Speed and Customer Support and Service (in order) are the two significant importance factors.
Males, Preference for Heavy Entertainment Traffic, high General Computer Skills and preference to use longer hours on the Internet per day, are the characteristics of potential broadband users. If ISPs want to increase their broadband customer base, they should target users who fit these characteristics and improve the factors that are important to them. The infrastructure for broadband in NZ is in place. However, adoption and diffusion will be slow until the access price is reduced.
Keywords
user preferences, internet service provider (isp), broadband, telco, adoption, diffusion
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