Broadband Users ‘Need’ Minimum Speed Of 10Mbps

Growing demands from consumers mean they need broadband speeds of at least 10Mbps, according to new research from Ovum, especially for applications like streaming video.

The analyst firm has published a report assessing both objective data like speed, coverage and momentum as well as subjective factors like service experience and consumer network score in 30 countries.

It says this should give communications providers a better idea of what consumers are experiencing and what they need to satisfy customers.

“We haven’t had a way of measuring customer satisfaction in broadband to give us an idea of how different countries are performing,” explained Ovum’s Mark Newman at the Huawei Ultra Broadband Forum (UBBF) in Madrid.

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10Mbps needed

The report found that the best consumer experience relies on three main factors: download speeds of 10Mbps, a stable and reliable network that delivers content within three seconds and “outstanding customer service” that deals with most issues at the first point of contact.

The average broadband speed in the UK is 23Mbps, according to regulator Ofcom, which is also considering increasing the universal service obligation from 2Mbps to 10Mbps in recognition of consumer demands. For those who wanted to stream ultra high definition 4K video, the minimum requirement is 50Mbps, according to the report.

Sweden finished first with an overall score of 88 percent, while the UK rated joint-eighth with Russia and the USA on 74 percent. Romania was second, Canada third, while Singapore, South Korea, Japan and Germany completed the top ten.

“Demands on broadband service provided to consumers is compounded by the rise in connected devices,” added Ovum’s Michael Philpott, co-author of the report. “Homes in mature markets were found to typically have up to four devices connected to the network, all of which have the potential to support a wide range of applications.

Ultra broadband growth

“Ever since broadband services were launched, there has been discussion on what is the definition of broadband and how much speed do consumers really need? In 2015, the answer is at least 10Mbps if you wish to receive a good-quality broadband experience, and a significant number of households, even in well-developed broadband countries, are well shy of this mark.”

Much of the debate at the UBBF has centred on how telcos must ‘reimagine’ their networks to offer a good video experience, not just for consumers, but also for enterprises who use video for communication, logistics and other purposes. Ovum says its findings can help communications providers identify how to improve their service and retain customer loyalty.

“With a clear link between poor user experience and customer churn, broadband service providers need to continue to invest in broadband infrastructure in order to provide their customers with the best broadband experience and maintain a satisfied customer base,” continued Philpott

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