Research Repository
A Market Research Survey For The City Of Kamloops Fibre Optic Utility Project

The City of Kamloops is interested in examining the feasibility of establishing a Fibre Optic Utility to provide high speed, ubiquitous and inexpensive telecommunications infrastructure to the citizens and businesses of Kamloops. With such an infrastructure in place it is hoped that Kamloops would become a preferred location for high technology, increased business development and operations.

Key Topics: Internet, Surveys
Scope: Government

• The major results from the small businesses are briefly highlighted here:
  Highlights of Business Research Results
• Over half of businesses reported interest in the community fibre optic utility project
• Businesses are currently paying a median amount of $40.00 per month for their Internet services with 42% of businesses paying $25.00 to $50.00 per month.
• A separate cluster of businesses (14% of the respondents), termed “high volume users” because they pay more than $100.00 per month for their Internet service, pay a median of $225.00 per month
• 30% of businesses indicated very strong purchase interest and purchase intent (rated 5 on a 1 to 5 scale)
• Businesses as a whole indicated that they would pay a median of 40% more per month
• High-volume users stated that they would pay an average of 50% more than what they currently pay
• Product features rated the highest in terms of interest were: (1) Security/Confidentiality; (2) Reliability/Stable Service, and (3) Technical Support
• Internet telephone (low cost long distance) was by far the application of highest interest
• 195 of 434 businesses completed the survey, an overall response rate of 45%. 23.7% of these were completed by the businesses and returned by mail while 67.3% were completed by telephone interview (the remaining 8.9% were completed in the pre-test or by fax)
• Respondents had a median of 7 employees
  Highlights of Residential Consumer Research Results
• One third of Consumers reported extreme interest in a high-speed communication or Internet service (rated 5 on a 1 to 5 scale by 30% of respondents).
• Purchase intent was extremely high for 50% of the Consumer group (rated 5 on a 1 to 5 scale by 50% of the respondents).
• Consumers are willing to pay an average monthly fee of $35.00 per month for a fibre optic service and $70.00 per month for a package that includes basic telephone, cable, and high-speed Internet access.
• The most important product features were: (1) Security/Confidentiality; (2) Reliability/Stable Service, and (3) Technical Support.
• Faster Internet services and Internet telephone were the applications with the highest level of interest.
• 473 of 1015 residents completed the survey, an overall response rate of 47%. 35.5% of these were completed by the resident and returned by mail, while 62.8% were completed by telephone interview (the remaining 1.7% were completed in the pre-test section).

Statistics: This report describes the Research Design and Primary Research Findings from the small businesses (N=195) and residential consumers (N=473).

Strategic Uses:

Comments: A third survey of several dozen large potential customers and stakeholders was handled directly by the City in personal interviews and meetings and is not part of this report.