The advent of broadband Internet access was meant to lift the
technology industry out of the doldrums and bolster demand for
faster services. But although the industry is seeing reductions in
the wholesale connection prices, the reality is that adoption is
still slow. How can industry prevent broadband becoming a white
elephant?
The content publishers, who complained about the slow roll-out of
broadband, have yet to identify innovative ways of appealing to
those consumers remaining on "narrowband" to tempt them to switch.
There are a few exceptions: one is MSN Carview, which is providing
video news from US auto shows to a European audience. Consumers are
increasingly using the Web to make their car buying decisions; a
rich news service that provides content not otherwise available is
a logical companion.
The narrowband Internet is mainly being used for traditional
activities. Adoption is increasingly apparent in particular areas,
especially transaction-based use. According to a recent survey by
ICM Research, of those people with Internet access, shopping was
the most popular online activity (34%), while 23% made travel
bookings online. This is encouraging, but merely scratches the
surface of the services that are available.
The potential shift we are asking people to make in moving from
narrowband to broadband is not unlike the jump from traditionally
scheduled broadcasting on TV to interactive television and "time
shift TV" technology.
The traditional argument for not offering such rich media was the
inability of networks to cope. Now the infrastructure is catching
up; core networks are faster; content delivery techniques bypass
Internet congestion, and broadband technology is being rolled out
ahead of demand.
If broadband is to be a success, content publishers must actively
invest and engage in "need creation" by asking the right questions.
What can the businesses investing in this area offer to consumers
that they can't get elsewhere? What can a faster connection offer
to the man on the street?
Once this "x" factor is found, it must be packaged and promoted.
Looking at options developed to date, the most fertile areas will
be entertainment/leisure and sports industries. Broadband can
enable guaranteed private webcam viewings during big games or
untelevised events. Look at the popularity and intimacy that
Reality TV provided.
One company taking advantage of broadband is Sony Pictures Digital
Entertainment, which has secured a following among early broadband
audiences to deliver broadband content. It recently launched
Screenblast.com, which is a broadband creativity platform that lets
users experience original entertainment; create, edit and publish
music and video; and share their work with others around the world.
Previews are available to 28kbps and 56kbps dial up.
Evolution of the Internet model from "push" to market "pull" is
needed to drive consumers to adopt broadband as the next big thing.
Businesses need to be more proactive in playing their hand and
raising the profile of broadband Internet and what it means to
their customers. And the opportunity extends beyond big brand
companies.
The business community needs to innovate and propel new benefits
outward. Their motivation in baiting the broadband Internet hook
will come from the opportunity to leverage and widen revenue
streams, such as pay per view and content subscription services.
The holy grail of widespread broadband adoption is still some way
off. Waiting patiently in the wings until this happens is not an
option. Methods exist to supply the 56kbps brigade with quality
transaction services on the Net. Those companies that take stop-gap
measures now will have a loyal broadband audience in place for when
the technology finally makes it.
Luk Vanderbrande is regional director for Europe at Cable
& Wireless Internet Services