Thursday, June 16th, 2011 - OVUM
Melbourne, 16th June 2011. Broadband service providers keen to grow their business by offering additional connected home services should target the home security and monitoring, smart energy control and media sharing markets, according to new Ovum research*.

However, the independent telecoms analyst finds that to translate this opportunity into revenue growth, broadband providers must first jump the hurdle of consumers’ unwillingness to pay for additional services.

As part of the research, Ovum surveyed** consumers to gain insight on current uptake of additional connected home services from broadband providers, and which offerings consumers are most interested in receiving.

Currently email, technical support and PC security are the most common additional services to be taken by customers from their broadband provider. However, the research found that although uptake of home security and monitoring, smart energy control and media sharing services is currently fairly low, they offer good potential, as consumers expressed strong interest in receiving them in the future.

“When it comes to home security, where broadband providers could potentially offer services such as monitoring and control via smartphones, our research found that 22 per cent of the Australian respondents would be interested in receiving this service. At the same time, only 17% of respondents would be willing to pay more than a month for $5 per month for it”, said Michael Philpott, Principal Analyst.

Philpott commented: “The strong interest from consumers shows the potential this market offers to broadband providers. However, to realise it they will need to get their price right, as with all connected home services, low willingness to pay is a major factor. According to our survey, just six per cent of Australians that expressed an interest would be willing to pay some of the high monthly fees that are currently on the market.”

Smart energy solution is a very hot topic in Australia with 29% of respondents showing interest, which would help them to control and monitor the amount of energy they are using. “However, most Australians are not yet willing to pay, with 42% of them stating they want it for free”, finds Philpott.

Another 20 per cent said a media sharing service, connecting all the devices used by the home owner would be something they would potentially like to receive from their broadband provider.

“Although starting from a low base, media sharing is another service with significant potential, in Australia. However, pricing is again an issue, with almost 50% of the consumers surveyed stating that they would expect to get this service for free.”

--ENDS---

NOTES TO EDITORS

*Consumer Insights Analyzer: Connected Home Services

**The survey figures used for the report were from the more advanced broadband markets of the UK, the US, Australia, France, Germany, Spain and Japan. 3% of sample (1026 respondents) represents Australia.

To arrange an interview or for further details regarding this release please contact Tanisha Kaul on +61 (0) 3 9601 6723, or email [email protected]

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Ovum provides clients with independent and objective analysis that enables them to make better business and technology decisions. Our research draws upon over 400,000 interviews a year with business and technology, telecoms and sourcing decision-makers, giving Ovum and our clients unparalleled insight not only into business requirements but also the technology that organisations must support. Ovum is part of the Informa Group.
Tanisha Kaul
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W: www.ovum.com

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Broadband service providers keen to grow their business by offering additional connected home services should target the home security and monitoring, smart energy control and media sharing markets, according to new Ovum research*.

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