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Consumers' awareness and usage of rights and opportunities in the fixed line telecoms market Layout image
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[Consumer research & initiatives home page] [Market information highlights] [Consumer Initiatives] [CMU research] [Management plan]

Last updated 29/6/00


Contents

Main GB survey
Background
Summary
Main findings:
Awareness
Usage
Perceived importance
Future usage
Appendix 1

HAFAD survey
Background
Summary
Main findings:
Awareness & usage
Perceived importance
Future usage
Appendix 2
Appendix 3

Next steps

 

 

Background
  • Residential customers have a number of rights and opportunities related to their use of telecoms services and information that they are entitled to in the fixed line market. During February/March 2000, a sample of 1519 residential consumers across England, Scotland and Wales were surveyed by research agency Ipsos-RSL about a number of these opportunities and rights (appendix 1).  This included whether or not they had heard of, and ever made use of these opportunities; whether or not they considered them important; and how likely they were to make use of them in the future.
  • A further survey was conducted with the kind assistance and support of Hammersmith and Fulham Action for Disability (HAFAD) on the same topics as the survey above, with the addition of rights and opportunities specific to consumers with disabilities, such as special tariffs for textphone users, and different format bills.  Link to the report of this survey. 
  • The purpose of this research is to assist in the provision of information for Oftel’s Raising Customer Awareness project, the aim of which is to identify whether consumers are aware of the opportunities available to them, and where they are not, to raise their awareness of these. Customers must have adequate, reliable information to assist them make better informed decisions and get the best deal from their telecoms service. Well informed consumers are a necessary element of an effectively competitive market.

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Summary

  • Awareness of the rights and opportunities ranged from 43% to 94% overall, with greater variations between different consumer groups. Awareness was lowest amongst the elderly, the lower social grades (DE) and those in rented accommodation, not working and on low annual incomes.
  • On the whole, usage tended to be quite low in relation to level of awareness. Although there is some scope for improvement, generally, amongst those who are aware of the rights, those who want to make of them tend to be doing so already. Usage was highest amongst women, the younger to middle age groups, lower social grades and larger households.
  • At least 3 in 5 consumers considered it important they know about the rights and opportunities available. Importance amongst different demographic groups varied widely between different rights/opportunities.
  • Of interest, are rights which consumers consider important they know about, but where awareness levels are low. Overall, only recording of calls, and TPS registration appear to be in this position. For each right and opportunity, particular groups of consumers can be identified as more likely to use, and more likely to consider important, but whose awareness levels tend to be lower than average. Generally, women and the lower social grades tended to have lower than average levels of awareness, but tend to be more likely to consider the rights important, and are more likely to make use of them.

Figure 1 provides a complete picture of awareness, current and future usage, amongst all consumers.

Figure 1 Summary of rights / ops awareness and usage

(Base: All, 1519)

illustration

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Main Findings

Awareness of rights and opportunities

General awareness levels …

  • Awareness levels for the various rights and opportunities varied from 94% for the right to access operators services from all home or public phones, to 43% for the right to register with the TPS. Apart from TPS, at least half of consumers were aware of the other rights/ops.
  • Over 4 in 5 consumers were aware of access to operator services, caller line identification, the level of detail provided to directory enquiries, and itemised billing.
  • Awareness was lower for written contracts and codes of practice, recording of conversations and call barring, and the TPS.

Varies by demographic group …

  • Awareness amongst different groups varied depending on the individual right/opportunity, overall however, some clear patterns emerged. Men were on the whole, more aware of the rights/ops than women. Awareness was generally highest amongst larger households with children, using more advanced telecoms products and services such as internet and mobiles, and broadsheet readers rather than the tabloids or mid-market press.
  • Awareness was generally lowest in the following groups:
    • Low social grades - DE
    • Older consumers, aged 55+, and particularly those over 65 (apart from TPS)
    • Consumers not working, low annual incomes, particularly those under £9,500
    • Living in rented accommodation, and left education before the age of 15
  • There were some regional differences but no obvious patterns – to a certain extent this may be a result of the demographic makeup in these areas. These differences could possibly assist in tailoring campaigns aimed at raising awareness.
  • There was little difference in awareness levels amongst disabled consumers who comprised 9% of the total sample.
  • On the face of it, raising awareness campaigns could potentially be targeted at the elderly, low income, and unemployed/retired consumers, who are generally in the DE social grades, and women more than men. The tabloids and mid-market press capture a higher proportion of these groups (apart from women) than the broadsheets, which is worth bearing in mind for campaign purposes. However, raising awareness could be further tailored by examining perceived importance, and current and potential future usage of these rights/opportunities.

Figure 1a shows awareness levels amongst all consumers.

Figure 1a % consumers aware of right / opportunity (Base: All, 1519)

illustration

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Usage of rights and opportunities

General usage of rights and opportunties

  • Apart from itemised billing (which is automatically provided to most customers), fewer than half of consumers aware of the rights/opportunities claimed to have made use of them. Withholding caller identification, advising directory enquiries on level of entry detail, and receipt of written contracts were made use of by about 2 in 5 of those aware of these rights. Takeup of the remaining rights and opportunities was relatively low, used by less than 1 in 5 of those who knew about them. This could be expected for some of the opportunities such as complaining about unfair contract terms, and number portability, both of which are more circumstantial in their application. However, takeup of the more generic opportunities including call barring, codes of practice and TPS registration was low relative to awareness.

Usage by demographic group

  • Females, the younger to middle age groups (24-55), and the lower social grades (C2DE) were on the whole making more use of the rights and opportunities available to them. As were larger households with children, those in rented accommodation and tabloid readers. Usage of these rights/ops was lowest amongst the elderly, upmarket AB social grades, and broadsheet readers.
  • There were however some exceptions to this, for example broadsheet readers were more likely tabloids to have registered with the TPS, and the lower social grades were less likely to have requested itemised bills. This highlights the individual nature of these rights and opportunities, some of which appeal widely, whilst others have a more specialist appeal. For example, consumers not working were more likely to have used calling barring and registered with the TPS, perhaps to assist in managing their bills as they tend to be on lower incomes, and if they are at home all day, they are more likely to be subject to direct marketing.

Figure 2a % made use of right / opportunity

(Base: Aware of right/opportunity, variable)

illustration

 

It could be argued that there is little benefit in raising awareness of some of these rights, given their low takeup. The table below compares the proportion of consumers making use of each of the rights with the proportion aware of that right :-

Awareness and usage of rights/ops (Base: All, 1519)

% using right

% aware of right

Access to operator services (unable)

14

94

Caller line identification

34

89

Directory enquiries details

39

88

Itemised billing

59

86

Number portability

11

67

Unfair contract terms

4

66

Customer codes of practice

12

58

Call barring

8

53

Written contracts

21

52

Telephone Preference Scheme

8

43

  • However, given that usage tends to be highest amongst several groups whose awareness is lowest, such as females, lower social grades, and those in rented accommodation, it is likely that takeup would increase if awareness amongst these groups in particular was improved.
  • It is also worth considering potential future usage, consumers who were aware of these rights and opportunities were asked how likely they would be to make use of them in the future.

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Future usage of rights and opportunities

General future usage

  • Apart from itemised billing (takeup of which is already relatively high compared to other rights), more than half of those aware of, but not making use of the rights, claim they are unlikely to do so (figure 3a). In short, whilst there is still some scope for take up, generally the majority of those aware of rights, who want to make of them, tend to be doing so already.
  • Examined in relation to current usage (figure 3b), takeup of TPS registration, call barring and codes of practice looks set to double, based on claimed consumer intentions. It is difficult to predict actual future usage however, since on average only about half of these consumers may actually follow through their intentions. Circumstantial opportunities such as number portability and complaints about contract terms are even more difficult to predict usage of, and estimates should be treated with caution.

Future usage by demographic group

  • The elderly, and the AB, higher income groups, were least likely to think they would make use of these rights in the future. Younger consumers, females, and larger households with children claimed to be most likely to use in the future.
  • However, as mentioned previously, awareness was lowest amongst several groups making most use of these rights and raising awareness amongst these groups may well result in increased future usage.

Figure 3a summarises current and potential future usage, again amongst those who are aware of the right.

Figure 3b shows likely future usage amongst those who are currently aware of, but not making use of the right.

Figure 3a Current and future likely usage of rights / ops

(Base: Aware of rights / ops, variable)

illustration

Figure 3b Future likelihood of making use of right/opportunity

(Base: Aware of, but not making use of rights/ops, variable)

illustration

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Perceived importance of rights and opportunities

General importance of rights/opportunities

  • Consumers were asked how important they thought it was for them personally to know about the rights and opportunities available to them. The purpose of this is to assist in deciding (a) whether or not there is a need to raise awareness of these rights if consumers do not consider it important, and (b) which rights are considered most important, and by which groups of consumers, as this can assist in targeting awareness campaigns. For example, the elderly were generally least aware and making least use of the rights and opportunities, but were least likely to consider them important. The lower social grades on the other hand were more likely than the ABs to consider the rights important, yet it was these groups who had the lowest levels of awareness. Given that they are also the group more likely to be making use of the rights, there is a strong case for raising their awareness.
  • Overall, all the rights were considered important to know about, by at least 3 in 5 consumers. Access to operator services, recording of conversations, and universal service which relate to the more generic basic service that consumers receive, were considered the most important rights, rather than services with a more specific application such as call barring and caller line identification, which were considered less important.

Demographic differences in perceived importance of rights and opportunities

  • Overall, females, larger households with children, those in employment, with high annual incomes, and those making use of more advanced telecoms including internet and mobile, were more likely to consider the rights and opportunities important. Apart from females, awareness of the rights/ops tended to be higher than average amongst these groups. This is important, as of concern, would be those who considered the rights important, but did not know about them. In addition to females, other groups that could benefit from raised awareness in terms of their perceived importance include DEs, in particular their awareness of call barring and itemised billing, and elderly awareness of number portability.

Figure 4a show consumers’ perceptions of whether they consider it important they know about the rights/opportunities available to them

Figure 4a Perceived importance of rights / opportunities

(Base: All, 1519)

illustration

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Appendix 1 - Summary of rights and opportunities on which consumers were surveyed

  • Keep number when switch supplier (number portability)
  • Choose whether your details are excluded, or included partially or fully in the phone directory
  • Access operator services such as directory enquiries and emergency services from all home phones and public payphones
  • Withhold your number when making a call – this prevents the person you are calling from knowing what number is calling them (CLI)
  • Stop calls being made from your phone to specific numbers that are charged at higher rates eg premium rate, or international
  • Register with the Telephone Preference Scheme if you do not wish to be called by companies selling or promoting their products or services
  • Receive itemised bills at no extra charge
  • Written contracts from telephone companies
  • Complain about unfair terms in contracts
  • Receive customer codes of practice, outlining procedures that telecoms companies should adhere to such as disconnection procedures
  • Be advised (by any means, not necessarily during the call) if your telephone conversation is being recorded
  • Receive basic telephony services from BT or Kingston Communications at reasonable prices

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Awareness of Rights & Opportunities Among Disabled Consumers

Background

  1. The purpose of this separate survey was to examine awareness and usage of rights and opportunities amongst for consumers with disabilities, including services provided specifically for disabled consumers such as special prices of textphone users, different format bills, directory enquiries free of charge for those not able to use a telephone directory.
  2. As with the omnibus study, respondents were asked about their awareness and usage of a range of telecoms rights and opportunities, and whether or not they considered these rights important (full list attached in appendix 2).
  3. The research was conducted amongst members of Hammersmith and Fulham Action for Disability (HAFAD), an organisation run by disabled people for disabled people, who kindly agreed to assist Oftel on this project.  Out of a total of 1200 questionnaires distributed, during March/April 2000, a sample of 211 was achieved comprising a cross section of disabilities and ages.  Details of the sample are shown in appendix 3.

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    Summary

    Awareness of rights/opportunities

  • Awareness was highest for the more generic and widely applicable rights including access to caller line identification (74% of Hafad sample aware), level of directory enquiries detail (63%) and operator services (58%). Awareness was notably lower amongst the Hafad sample compared with the main sample, in particular with customer codes of practice (main sample 58%; Hafad sample 18%), access to operator services (94%; 58%) and universal service (70%; 37%).
  •  

    Current usage

  • Despite lower awareness of rights/opportunities among the Hafad sample, usage was broadly similar among the two samples with the exception of caller line identification (used more among the Hafad sample).
  •  

    Future Usage

  • The survey found that, once aware, respondents were clearly more likely to use each of the rights/opportunities. In particular, around eight times as many respondents said that they would be likely to use customer codes of practice (73% against 9%), call barring (59% against 7%) and number portability (54% against 7%) in the future as were currently making use of these rights/opportunities. Also, use of directory enquiries free of charge was likely to rise three-fold (90% against 29% - see Point 9, Appendix 1) and caller line identification by two-thirds (77% against 46%). Analysis by age showed that respondents aged 65+ were consistently less likely to use any of the rights/opportunities, in addition to low awareness levels amongst this age group.
  •  

    Importance of awareness

  • With many of the rights/opportunities, awareness was significantly lower than the proportion of respondents perceiving it as very important to know about the right/opportunity. In particular, whilst 82% perceived it as very important to know about universal service, just 37% were aware of the right. Similar discrepancies were found with using directory enquiries free of charge (79% very important; 38% aware - see Point 9, Appendix 1), customer codes of practice (51% very important; 18% aware) and number portability (72% very important; 44% aware).
  •  

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    Main Findings

    Consumer awareness and usage of rights and opportunities

  • Overall, only three of the rights were known by more than 50% of consumers - access to operator services, caller line identification, and level of directory enquiries detail. These three rights had also achieved the highest awareness levels among the main sample. Generally, as would be expected, awareness was highest for the more generic and widely applicable rights, and lower for those related to specific opportunities or groups of customers.
  •  

    Chart 1a Consumer awareness and usage of rights and opportunities

    Base: All respondents, 211

    illustration
  • Caller line identification and directory enquiry details, with the highest awareness levels, were also the two rights/opportunities most used among the Hafad sample. They were followed by using directory enquiries free of charge in spite of a lower awareness level (see Point 9, Appendix 1). However, less than half of the sample had made any use of any one of the individual rights, which is not particularly surprising given that many were related to specific circumstances such as switching supplier (number portability), or using special equipment such as textphones.

  • Awareness of each right/opportunity was notably lower amongst the Hafad sample than among the main sample. The difference in awareness was widest with customer codes of practice, access to operator services and universal service.

Chart 1b  % of consumers aware of right/opportunity

(Main sample: all respondents, 1519; Hafad sample: all respondents, 211)

illustration
  • However, use was broadly similar among the two samples with the exception of caller line identification (used more frequently among the Hafad sample).

    Chart 1c  % of consumers made use of right/opportunity

    (Main sample: all respondents, 1519; Hafad sample: all respondents, 211)

    illustration

     

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    Perception of importance of knowing about rights/opportunities

  • Awareness of the majority of rights (nine out of 13) was considered very important by at least half of the respondents.
  • In the Hafad survey, rights for which awareness was substantially lower than perceived importance of awareness included universal service (45 point difference), using directory enquiries free of charge (-41: see Point 9, Appendix 1), customer codes of practice (-33), number portability (-28), call barring (-23), access to operator services (-21). Similarly, in the main survey, awareness for customer codes of practice (-19), universal service (-18), number portability (-16) and call barring (-12) was noticeably lower than perceived importance of awareness though by a smaller margin.

    Chart 2a  % perceiving awareness of right/opportunity very important

    (Main sample: all respondents, 1519; Hafad sample: all respondents, 211)

    illustration

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Likely future use of rights and opportunities

  • A wide difference emerged between current use of each of the rights/opportunities and likely use in the future among the Hafad sample. In particular, around eight times as many respondents said that they would be likely to use customer codes of practice, call barring and number portability in the future as were currently making use of these rights/opportunities. Also, use of directory enquiries free of charge was likely to rise three-fold (see Point 9, Appendix 1) and caller line identification by two-thirds. In comparison, in the main survey, future use of number portability, customer codes of practice and call barring was around double that of current use and caller line identification was likely to grow by a quarter. Exact comparison of future use in the two surveys cannot be made as, in the main survey, only respondents aware of, but not currently using each right/opportunity were asked about future usage.

    Chart 3a % likely to use rights/opportunities in the future against current use

    (Base: All Hafad respondents, 211)

    illustration
  • Due to much lower awareness of rights/opportunities among the Hafad sample, future use, with a few exceptions, far exceeded awareness. This suggests that greater awareness of rights/opportunities is needed among disabled consumers might increase usage. In contrast, future use among the main sample was lower than awareness for each of the rights/opportunities. Again, exact comparison of future use in the two surveys cannot be made as, in the main survey, only respondents aware of, but not currently using each right/opportunity were asked about future usage.

 

Chart 3b % likely to use rights/opportunities in the future against awareness

(Base: All respondents, 211)

illustration

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Demographic differences

  • With the exception of alarm systems, awareness of each of the rights/opportunities was consistently lower among respondents aged 65+ years. The survey also found that the 65+ group was less likely to make use of each right/opportunity once they were aware (chart overleaf) which suggests that factors other than lower awareness might be involved such as perceived hassle involved in claiming rights/opportunities.

 

Chart 4a % aware of right/opportunity by age (Base: All Hafad respondents, 211)

illustration

Chart 4b % likely to make use of right/opportunity by age (Base: all Hafad respondents, 211)

illustration

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Conclusions

  • Awareness of all the rights/opportunities was noticeably lower among the Hafad sample than among the main sample though little difference in current usage was found due to relatively high usage among Hafad respondents aware of each right/opportunity. This implies that usage of the rights/opportunities by people with disabilities would increase with wider awareness.
  • The survey found that increased awareness of generic rights would be of most benefit. These include using directory enquiries free of charge (see Point 9, Appendix 2) and customer codes of practice which had relatively low awareness levels though high usage among respondents aware of these rights/opportunities. Promotion of caller line identification and directory enquiry details would be beneficial as use of these rights/opportunities was high among aware respondents though awareness was lower among the Hafad sample than among the main sample.
  • Another finding supporting increased awareness was that once respondents were aware of the rights/opportunities through the process of the survey, a much higher proportion claimed to be likely to use these rights/opportunities in the future compared with current usage. The need for increased awareness was also shown by the combination of low awareness levels though high claimed future usage for rights such as alarm systems and call barring.
  • The survey also found that the 65+ age group was consistently less aware of, and at the same time, least likely to use any of the rights/opportunities in the future. However, this group of elderly disabled consumers would seem most likely to benefit (being more vulnerable with, on average, lower incomes). Further research could look at how to improve awareness of rights/opportunities among the 65+ age group and, in particular, the reasons for low usage among this group (for example, the perceived hassle involved in claiming rights/ opportunities where telcos might be resistant).

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Appendix 2 - Summary of rights and opportunities on which consumers were surveyed

  1. Keep number when switch supplier (number portability)
  2. Choose whether your details are excluded, or included partially or fully in the phone directory (directory enquiry details)
  3. Access operator services such as directory enquiries and emergency services from all home phones and public payphones (access to operator services)
  4. Withhold your number when making a call – this prevents the person you are calling from knowing what number is calling them (CLI – caller line identification)
  5. Stop calls being made from your phone to specific numbers that are charged at higher rates eg premium rate, or international (call barring)
  6. Use tyeptalk
  7. Special prices of textphone users
  8. Large print, Braille or audiotape style bills (different format bills)
  9. Use directory enquiries free of charge (DQ free of charge). Please note that, to simplify the questionnaire, respondents were instructed to answer all questions. As such, questions relating to the use of directory enquiries free of charge were asked of all respondents whether eligible or not (the questionnaire not specifying that use of directory enquiries free of charge was only available for blind consumers and others not able to use a telephone directory). Therefore, awareness of use of directory enquiries free of charge is likely to be understated and likely use in the future overstated)
  10. Buy and use special equipment with existing telephone service
  11. Alarm systems – alerting someone of your difficulty in an emergency
  12. Receive customer codes of practice, outlining procedures that telecoms companies should adhere to such as disconnection procedures (customer codes of practice)
  13. Receive basic telephony services from BT or Kingston Communications at reasonable prices

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Appendix 3

Hafad Sample: Disability, Age, Telecoms Equipment

(Base: All Hafad respondents, 211)

chart.gif (27813 bytes)

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Next steps

What are we doing with the results?

Knowledge of rights and opportunities is an important factor in empowering consumers to make the most of the opportunities of the competitive telecommunications market. Possessing this knowledge may increase consumers’ confidence in making choices and also empowers them to protect their own rights.

Oftel will use the results of this research to identify those rights and opportunities where consumer awareness could be improved. In addition to identifying the rights and opportunities, the research will also enable Oftel to identify which consumers to focus on including regions, different age groups etc.

Consumer groups, the industry and Oftel will – in co-operation – develop strategies to raise consumers’ awareness of their rights and opportunities where necessary. These will be developed and implemented on a case by case basis, but may include media coverage, information leaflets, and briefing information providers such as charities, Citizen Advice Bureaux and Trading Standards Offices.

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