Consumer barriers to adopting gigabit-capable broadband

The UK government has set out its ambition that at least 85% of the UK should have access to gigabit-capable broadband by 2025. However, while supply is a necessary factor in driving this broadband adoption, it is not sufficient. Demand is also required to realise the benefits of investment in these networks.

Stimulating consumer demand for new technology in the broadband market is, however, a challenge. For example superfast broadband is available to 96% of premises in the UK yet, of those which it’s available to, only 60% have adopted it.1 Increased speed – the benefit of superfast connections and one of the main advantages of gigabit-capable broadband – does not tend to ‘pull’ consumers to engage in the broadband market. This is because consumers are mostly satisfied with the performance of their packages and therefore aren’t motivated to engage with the market; they feel that what they have meets their household’s needs.

It is in this context that industry, government and the regulator will have to work to persuade consumers of the benefits of a gigabit-capable connection and to address the barriers they face, of which cost is particularly important.