Oftel's latest business and residential consumer research was published in October. The key findings were:

Mobile
Residential consumers

• 73% of UK adults have a mobile - a steady increase
• 77% use prepay packages
• 16% use a mobile as their main method of telephony; 90% are satisfied with this method
• two in three UK mobile customers choose their mobile over their fixed line for convenience or cost saving in certain circumstances, for example when fixed line connected to Internet
• Overall, 94% are satisfied with their mobile service
• There is significant dissatisfaction with roaming costs (25% satisfied)
• A significant number of consumers are still being misinformed or are unaware of number portability

Businesses

• 61% of small businesses and 85% medium businesses have at least one mobile phone
• 80% of SMEs with mobiles use post-pay packages
• 94% are satisfied overall, but again there is significant dissatisfaction with roaming costs (36% satisfied)
• Mobile number portability has become easier, but porting costs are a barrier to some

Internet
Residential consumers

• 39% of UK homes now have Internet access
• Overall, 49% of UK consumers use the Internet either at home and/or elsewhere
• 10% of consumers don't have Internet at home, use it elsewhere
• The majority (84%) connect via dial-up (ordinary phone line)40% use unmetered packages, which not only increases time spent online, but also plays an important role in getting people online
• 91% are satisfied with their home Internet service

Businesses

• 61% of SMEs are currently connected to the Internet (up from 55% in May)
• 75% of small businesses use dial-up, while medium-sized businesses are more likely to use ISDN or leased lines
• 37% of businesses with Internet use unmetered packages
• 91% are satisfied with quality of service provided by their ISP
• 78% are satisfied with speed of access

Fixed
Residential consumers

• 93% UK homes have a fixed line phone
• 1% have neither fixed nor mobile and 6% use mobile only - no change since May
• Average quarterly spend has fallen by £5 - perhaps an indication of savings from bundled packages
• 47% of fixed customers are unaware of indirect access#
• Half of BT customers are aware of BT's inclusive call allowance and about 2% consciously make use of this before switching to another supplier
• About one in five of customers who switched suppliers are still being given incorrect advice about number portability

Businesses

• Overall, 90% are using BT, but medium businesses twice as likely as small businesses to use an additional supplier
• Overall satisfaction is generally high (94%), but a quarter had complained, and only half were satisfied with the way their complaint was handled
• 27% have switched supplier - the majority (94%) found this easy and 90% ported their numbers
• Less than one in five SMEs were aware of corporate numbers (where a dedicated dialling code is allocated to a business), and most would apply for fewer than 10 numbers - SMEs are unlikely to be the target audience for corporate numbering
• 80% of SMEs making international calls use one supplier for these calls - almost a third selected this supplier on its charges for specific countries they were going to call, or because it offered cheaper international calls in general
• 39% thought they might use carrier pre-selection for international calls

Recent ad hoc projects

Digital television

The EPG (electronic programme guide) was seen as a quick, efficient and logical list of channels. Interactive and Internet services were defined essentially as 'interesting extras' and most consumers would not substitute the PC with digital television for these services. The core decision to take out digital subscription television was a desire for more choice and more channels, rather than how much it would cost.

Branding

Brand image plays an important role in consumers' choice of suppliers. They must be recognisable and trustworthy. Price was an important factor for consumers considering switching, but rarely more important than using a known or recommended supplier. Consumers listed potential new entrants they felt were trustworthy and capable of branching out to supply telecoms services.

Forthcoming research projects

• Broadband technology - assess the level of interest and demand amongst Internet and non-Internet users. What are consumers' perceived benefits and what would encourage them to use broadband services in the future?
• Internet usage - are consumers making use of the alternatives available? Examine consumers' use of packages and methods of connection, and awareness of the choices available.
• Oftel's consumer guides - how useful are the current guides, could they be improved and do they contain enough information to assist the consumer?

Contact Lisa Etwell on 020 7634 8741, lisa.etwell@oftel.gov.uk for more details on Oftel's consumer research programme.

All Oftel research is published on the website at www.oftel.gov.uk/consumer/research/research_index.htm.