Consumers and SMEs are reluctant to upgrade to faster internet connections due to perceived costs of rewiring homes and premises, says a Commerce Commission paper released today.
It found 66 percent of consumers surveyed thought that rewiring a premises posed a significant barrier to taking up a faster broadband connection.
Almost half of SMEs surveyed say rewiring their premises would be a significant barrier if business function was disturbed, falling to 32 percent if only some inconvenience was experienced.
According to the paper, 60 percent of SMEs are concerned faster broadband will create increased data usage in their businesses, causing them to exceed their data caps, while around 70 percent see the cost of upgrading IT services as a barrier.
The paper is the first of three the commission plans to release ahead of 'The Future with High Speed Broadband: Opportunities for New Zealand' conference in February.
The other two papers will discuss e-health and e-education, and willingness to pay, content, and applications.
The commission encourages interested parties to comment by emailing [email protected]