Are TV-viewers and surfers different breeds? Broadband demand and asymmetric cross-price effects

We consider two different qualities of broadband access, one that simply means greater access speed to Internet applications and content and a premium version that also gives access to interactive TV-centric applications. Based on a market survey we find that potential consumers of this premium broadband access do not consider basic broadband Internet access as a substitute. The price of the basic Internet-centric service does not constrain the price that may be charged for the premium TV-centric service.