Broadband is recession-proof says research report

The research was commissioned by Alcatel Lucent and carried out by in cooperation with market research firms Penn, Schoen & Berland Associates and Ipsos MediaCT as part of an ongoing global study that is examining the global impact our straitened economic times is having on the provision and usage of telecoms services  and the role broadband services can play in promoting global economic growth and social welfare.

The research uses sophisticated statistical analysis tools to determine how consumers prioritise household spending during a recession by comparing the relative value of a wide variety of specific fee-based services.
 
The results support widespread and oft-quoted anecdotal evidence that broadband services are essentially recession-proof, with 84 per cent of consumers saying that broadband is "an essential network service" and the last thing to be considered during times of enforced belt-tightening.

The research also shows that even though times are tough, consumers around the world have plans to upgrade their broadband services even as they are cutting discretionary spending in other areas.

Interesting, given the background against which the research is being conducted, key factors driving this preference include a desire to reduce the cost and travel time associated with commuting coupled with a marked and preference for greener alternatives.

Tim Krause, Alcatel Lucent's Chief Marketing Officer says, “This [research] clearly shows that people across the world rely on broadband services as a central part of their social and economic lives.

As the world looks at ways to address the twin challenges of economic growth and climate change, our research shows that broadband and the digital economy must absolutely be at the top of decision making agendas.” 
 
The research also shows that attitudes to broadband provision cut across both regional geographics and socio-economic strata as well as definite distinctions in attitudes abetween users in high-growth markets and those in the developed world.
 
For example, French consumers say the financial crisis has had a more profound negative impact on their households than is being experience in other countries.

Whether or not this introspective Gallic gloom is justified is a moot point with some analysts pointing out that despite their enviable lifestyle the French always like to have something to moan about. Nonetheless it is a fact that according to the research people in emerging economies are much more optimistic about the future than their counterparts in developed countries around the world.

For example, while 66 per cent of respondents to the various surveys say they are cutting expenditures, 85 per cent of consumers from emerging countries indicate that their household economic situation will either be the same or will have improved a year hence whilst just 64 per cent of respondents feel the same level of optimism.
 
Alcatel Lucent's Market Advantage Programme is part of a broader initiative by the company to examine and analyse the impact and potential benefits of telecoms services on the global community.
 
The key regional statistics outlined in the report shows that 81 per cent of Europeans now regard broadband connectivity and access as "central and essential" to their lives (that figure is 86 per cent in France). In APAC the figure is 89 per cent, it's 80 per cent in North America and 75 per cent in Latin America.