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Internet Security Services: Adding to the Broadband ISPs Bottom Line?

For Immediate Release
Contact: Jenny Barrett
Parks Associates
972-490-1113
Email: sales@parksassociates.com

Internet Security Services: Adding to the Broadband ISP’s Bottom Line?
Internet protection services — including anti-spyware, antivirus, anti-spam, pop-up blockers, and parental controls — may drive growth in value-added service revenues

Dallas, Texas April 5, 2005 — More than one-half (56%) of U.S. broadband households have received an Internet protection solution from their broadband ISP, although only 11% currently pay for these services, according to Parks Associates’ recent study Profiles of PC Usage.

Nevertheless, these security solutions, which could include antivirus, anti-spyware, anti-spam, pop-up blockers, and parental controls, could lead to greater customer retention and future revenue growth as ISPs expand these services. Two-thirds of U.S. and Canadian households indicate a willingness to pay for such services, according to Parks Associates’ Global Digital Living survey.

“Along with the many benefits of broadband Internet connectivity, it also brings concerns about viruses, spyware, and other maladies,” said Kurt Scherf, vice president and principal analyst at Parks Associates. “Although most home users report using their own security and protection packages, Internet service providers have a significant opportunity to offer such services not only as customer satisfaction and retention tools but also as value-added services and revenue drivers.”

Scherf points to the early moves by Canadian broadband providers Bell Canada and TELUS as potential models. Both carriers offer a variety of fee-based security solutions to their customers, and Bell Canada in particular has found that its offering is driving a large percentage of the provider’s value-added solutions revenues at present.

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“As broadband carriers seek to package a variety of value-added services, they should not forget that some of the most attractive features are those that address very basic needs,” Scherf said. “Broadband-deployed Internet security solutions include subscriptions for virus and spyware definitions, real-time monitoring and alerts from a trusted carrier, and established customer billing and support service mechanisms. At a time when growing revenue per subscriber has never been more important, these services could strengthen the carrier-customer relationship as well as the ISP’s bottom line.”

Global Digital Living is a multinational research program that surveys customers in thirteen countries spanning four continents. Profiles of PC Usage provides a detailed assessment of how today’s PC owners use this device in everyday life. For additional information on Global Digital Living or Profiles of PC Usage, visit http://www.parksassociates.com or contact 972-490-1113 or sales@parksassociates.com.

About Parks Associates: Parks Associates is a market research and consulting firm focused on all product and service segments that are “digital” or provide connectivity within the home. The company’s expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.

Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, multiclient studies, consumer research, workshops, and custom-tailored client solutions. Parks Associates also hosts Fall Focus and co-hosts CONNECTIONS (in partnership with the Consumer Electronics Association) each year. www.parksassociates.com

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