With consumer confidence plunging, Alcatel-Lucent Market Advantage end-user research has assessed how the current economic downturn affects consumer spending for network-based communication and entertainment services. The good news for service providers is that network-based services will not be the first items cut from household budgets. Broadband services, in particular, are now considered “essential” -- making them the last service consumers would give up. However, if the economic downturn continues or worsens, the research shows that consumers worldwide will adapt their spending patterns, initially by choosing more cost-effective ways to maintain their favorite network-based services. These changes include shifts to free or lower-cost offerings, service bundles or services subsidized by advertising.

Read this research paper to learn more.