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Forrester Sees Tiered Data Marketing

11/13/2002 4:27 AM Eastern

Forrester Research Inc. has released a new report tying the tiering of cable broadband services to individual market segments.

The research firm interviewed 8,000 U.S and Canadian citizens to discuss tiering options.

Forrester found that a low-cost tier appeals to price-sensitive households, where online needs are basic, such as viewing personal ads and recipes. Although pricing will be lower, Forrester said, such tiers will mean less cost for operators due to smaller customer-service needs.

The middle tier of service resembles today's offerings, Forrester said, and customers are willing to pay for high-speed even if downloading music, gaming or streaming video isn't included. "Since most standard-tiered subscribers grow accustomed to speed, there is little risk of downgrading," the company added.

Premium-tier subscribers will be wealthier, more experienced and younger, Forrester said, and they'll seek multimedia applications for work and entertainment. This group promises to be the highest-margin customer, Forrester said.

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