ZON's Residential 1Gbps Service: What's the Point?

Portuguese Cable provider ZON has announced plans to commercially launch a residential 1 Gbps service, debuting in September.  While, on the surface, more speed should be better than less speed, for the average consumer, the difference will likely by imperceptible.

Speed wars are nothing new, and we have certainly given them a lot of attention in our
research

In today's environment, it's no easy task to create a credible usage profile supporting 100 Mbps service, much less 1 Gbps. Aside from uber-downloaders or gamers, few will notice (or care about) the difference. It is equally challenging to predict what high-bandwidth applications and services await users in the next five years, though it is likely that technology will adapt to accommodate and use up the excess bandwidth. 

Those in the "if you build it they will come" camp claim that households have to reach a high bandwidth tipping point before mass-market services will be launched. Cisco talks about taking
Telepresence residential--at least to the "Executive Home" to start,  which could easily support the case for more bandwidth. Other likely drivers are streaming services, which will continue to set new quality benchmarks--including 1080p.

Another consideration that service providers need to consider is whether or not they are shooting themselves in the foot with these "too much, too soon" high bandwidth offerings.  These very offerings could ultimately cannibalize tv revenues; the experience of streaming "Over the Top" (OTT) content is drastically improved with high bandwidth/throughput.

 

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