Ref :65/00
Date : 25 August 2000

Oftel has today published a survey into the use of fixed telephony, the Internet and mobile phones by small and medium sized businesses.

The results show that medium sized businesses (those with 51-500 employees) are making good use of competition. However by comparison, small businesses

(1-50 employees) are not taking full advantage of the choice of telecoms services and suppliers available.

Key findings of the survey include:

• 93 per cent of medium businesses own mobile phones, compared to 60 per cent of small businesses.

• Of those that do have mobile phones, around a third of small businesses and almost half of medium sized businesses have switched their service provider.

• 90 per cent of medium sized businesses – against 43 per cent of small businesses are connected to the Internet.

• Two-thirds of small businesses as opposed to one-third of medium sized businesses are using BT as their only fixed line supplier.

• 94 per cent of businesses surveyed were satisfied with the overall service provided by their telecoms suppliers.

Oftel has also published a report today on consumer views on switching phone company which found that 25 per cent of residential consumers have switched their fixed phone supplier with a similar proportion changing their mobile supplier.

The research shows that residential consumers who switched the supplier of their phone service can save, on average, 20 per cent of their phone bill.

David Edmonds, Director General of Telecommunications, said today:

"Residential consumers and small businesses are starting to shop around for a good deal on their telecoms services. But lack of knowledge and understanding prevents more of them taking advantage of the full range of services available.

"Residential consumers and small businesses in particular are likely to have less time and expertise to investigate the choices open to them and therefore need greater assistance.

"The industry must ensure that these consumers have available the information necessary to help them get the best deal possible.

"A number of services already exist. www.phonebills.org.uk and www.cpi.org.uk provide comparative information on supplier availability, prices and quality of service.

"www.TelecomsAdvice.org.uk is a new independent website that offers practical and impartial advice to small businesses to help them make the most of their telecoms services.

"I welcome these initiatives and I want the industry to raise awareness of the information that is available so that more people can gain the benefit of cheaper, more effective telecoms services."

These surveys are part of an ongoing programme of research that will be used by Oftel when making policy decisions to meet its goal of achieving the best deal for the consumer.

Notes to editors.

1. The research papers covering small business use of fixed, mobile and Internet services and a further paper on residential customers changing supplier are available to the press from Oftel’s press office, tel: 020 7634 8991, to the public from the Research and Intelligence Unit, tel 020 7634 8761 and on Oftel’s website at http://www.oftel.gov.uk/cmu/research/1999.htm

2. The reports form a summary of the findings from Oftel’s first quarterly survey on telecoms usage of 719 small and medium businesses conducted in May/June 2000. The survey comprises 411 small (1-50 employees) and 308 medium businesses (51-500 employees) located across the UK with a minimum turnover of £50,000.

3. The Consumer Switching Behaviour survey was conducted in February 2000 on behalf of Oftel and Consumers’ Association by NOP, amongst 5700 UK adults (aged 15+) to establish the proportion of homes that have switched their fixed telecoms supplier. 25% of UK homes claimed to have switched their fixed telecoms supplier. A sample of ‘switchers’ (770) and ‘non-switchers’ (1215) were contacted examining their awareness and usage of telecoms choice and decisions in more detail.

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