Broadband Services Remain a Top Spending Priority for Consumers Even in Tight Economic Times, Research Shows


PARIS, June 25 /PRNewswire/ --     Consumers are unwilling to part with their broadband services at home
even in the midst of the economic downturn, preferring to cut spending on
things like dining out and leisure travel, according to a series of recent
studies sponsored by Alcatel-Lucent (Euronext Paris and NYSE: ALU).

These findings were uncovered as part of a global study
exploring the impact of the economic recession on spending for telecom
services and the role broadband services can play in promoting global
economic growth and social welfare. The study, conducted by of
Alcatel-Lucent's Market Advantage Program (MAP) -- in cooperation with market
research firms Penn, Schoen & Berland Associates and Ipsos MediaCT --
employed statistical analysis to determine how consumers prioritize household
spending, given a recessionary mindset, comparing the relative value of a
wide variety of specific fee-based services.

Broadband services appear to be nearly recession-proof, with
84 percent of consumers identifying broadband as an essential network service
and therefore the least likely target for spending cuts. The studies also
showed that more consumers globally are planning to subscribe to and/or
upgrade their broadband services, even while reducing spending in other
areas. Key factors driving this preference include a desire to reduce the
cost and travel time associated with commuting, coupled with a preference for
greener alternatives. In developed countries, respondents also noted a
growing dependence on the Web as an information source, business tool, social
network and entertainment venue.

"This clearly shows that people across the world rely on
broadband services as a central part of their social and economic lives,"
said Tim Krause, Chief Marketing Officer for Alcatel-Lucent. "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 indicated that attitudes about broadband cut
across regions and socio-economic strata, however it also revealed
distinctions in attitudes about the economy between consumers in high-growth
markets and those in more developed markets.

In markets such as France, for example, consumers indicate
that the financial crisis has had a greater negative impact on their
household when compared to consumers in other countries.

In contrast, people in emerging countries are more optimistic
about the future than those in developed countries around the world. While
two thirds of consumers indicated they are cutting expenditures, 85 percent
of consumers from emerging countries indicated that their household economic
situation would be the same or better a year from now compared to 64 percent
of respondents in the developed countries.

About the Market Advantage Program & Alcatel-Lucent's Research
Initiatives

This research is part of a broader initiative by Alcatel-Lucent to
characterize the impact and potential benefits of telecommunications services
on the global community. The Alcatel-Lucent Market Advantage Program (MAP) is
an exclusive resource created to partner with service providers in analyzing
and identifying new market opportunities, driving demand with effective
marketing programs and closing profitable new business faster.

For more information on MAP and how we are working with
service providers and stakeholders across the world to better understand
consumer needs, please visit. http://www.alcatel-lucent.com/map

Information on additional Alcatel-Lucent research and market
development-related initiatives can be found at the following links:

- Alcatel-Lucent launches "Broadband for All" program in
United States to help telecom providers addressing broadband stimulus funding
opportunities 
(http://www.alcatel-lucent.com/wps/portal/newsreleases/detail?LMSG_CABINET=Docs_and_Resource_Ctr&LMSG_CONTENT_FILE=News_Releases_2009/News_Article_001562.xml&lu_lang_code=en )

- Alcatel-Lucent and Telecommunications Journal of Australia
launch 3rd "Broadband Environment Challenge" at the Sustainable Fibre Nations
industry forum 
(http://www.alcatel-lucent.com/wps/portal/newsreleases/detail?LMSG_CABINET=Docs_and_Resource_Ctr&LMSG_CONTENT_FILE=News_Releases_2009/News_Article_001571.xml&lu_lang_code=en )

- Alcatel-Lucent appoints executive for National Broadband
Network (NBN) 
(http://www.alcatel-lucent.com/wps/portal/newsreleases/detail?LMSG_CABINET=Docs_and_Resource_Ctr&LMSG_CONTENT_FILE=News_Releases_2009/News_Article_001570.xml&lu_lang_code=en )

- European study presents findings on invention of online and
interactive television applications by end-users 
(http://www.alcatel-lucent.com/wps/portal/newsreleases/detail?LMSG_CABINET=Docs_and_Resource_Ctr&LMSG_CONTENT_FILE=News_Releases_2009/News_Article_001547.xml&lu_lang_code=en )

(Due to the length of these URLs, it may be necessary to copy and paste
the hyperlinks into your Internet browser's URL address field. Remove the
space if one exists.)

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted
partner of service providers, enterprises and governments worldwide,
providing solutions that to deliver voice, data and video communication
services to end-users. A leader in fixed, mobile and converged broadband
networking, IP technologies, applications and services, Alcatel-Lucent
leverages the unrivhalled technical and scientific expertise of Bell Labs,
one of the largest innovation powerhouses in the communications industry.
With operations in more than 130 countries and the most experienced global
services organization in the industry, Alcatel-Lucent is a local partner with
a global reach. Alcatel-Lucent achieved revenues of Euro 16.98 billion in
2008 and is incorporated in France, with executive offices located in Paris.
For more information, visit Alcatel-Lucent on the Internet:
http://www.alcatel-lucent.com

© PR Newswire Association LLC.

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