Low-cost Broadband - Great for internet retailers
Yesterday AT&T announced a new $13/month DSL service for up to 1.5 Mbps download speeds. After 1 year the price goes up to $30 (if consumers renew their contract - I’m guessing that after going to broadband most users would). Also, you have to place your order online and subscribe to a local phone plan (starting at $10/month).This is great news for internet retailers. Chew on this statistic - about 50% of all internet users are still using dial-up (slightly less now). I wouldn’t disclose the exact percentage, but let me say that the vast majority of our revenue comes from broadband users. The logic is simple - shoppers like to see a lot of pictures and content and getting a decent picture of a product over dial-up takes too long to load.As the rest of the country comes into the broadband fold internet retail will skyrocket. It’s a great time to open an internet storefront.
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I think Internet bubble 2.0 will be much funner than the last one!
Comment by Sam — February 8, 2006 @ 3:41 am