Mobile

Residential consumers

• 75% of UK adults have a mobile (approximately 21 million homes have at least one mobile) and the growth rate is now beginning to slow;
• overall, 93% are satisfied with their mobile service - a figure which has changed little in recent months;
• 72% of mobile owners use 'pay as you go' phones compared to 23% using monthly contract and 5% using all-in-one; and
• 63% of mobile customers are aware that they can change SIM cards to use additional or alternative networks, and 4% of customers currently use more than one SIM card.

Businesses

• 63% of small businesses and 83% of medium businesses have at least one mobile phone - little change since August;
• 71% of SMEs with mobiles use post-pay contract packages;
• business consumers' monthly spend on mobiles continues to fall: currently on average £40 per month, per phone;
• 88% of business customers are satisfied with their mobile service overall; and
• 66% of businesses with mobiles are aware of the possibility of using additional or alternative SIMs, but comparatively few (4%) currently use more than one SIM card with their mobile phones.

Internet

Residential consumers

• 49% of consumers use the Internet and 45% of UK homes have Internet access - penetration continues to rise following a brief stabilisation in August;
• two in 5 of those online use unmetered packages - around four million homes;
• Internet users spend on average eight hours per week online;
• 2% of Internet homes use broadband access;
• 96% of those who make decisions on Internet access are satisfied with overall service;
• 55% of narrowband users expressed an interest in upgrading to broadband, mainly longer established and heavier users, those using unmetered and ISDN and those dissatisfied with current speeds; and
• however, many feel that they do not use the Internet enough for broadband to be worth the extra cost.

Businesses

• 63% of SMEs are currently connected to the Internet (92% of medium-sized businesses and 62% of small businesses);
• four out of five small businesses use ordinary dial-up access, while medium-sized businesses are still more likely to use ISDN or leased lines;
• 36% of businesses with Internet use unmetered packages - no change since August;
• 89% are satisfied with quality of service provided by their ISP; and
• businesses are least satisfied with Internet access speeds: currently 73% satisfied compared to 78% in August.

Fixed

Residential consumers

• 93% of UK homes have a fixed line phone, 6% use mobile only and 1% have neither fixed nor mobile;
• awareness of indirect access has increased, but two in five customers are still unaware;
• there has been significant improvement in number portability, but two in five recent switchers still changed their number; and
• consumers are becoming more aware of independent sources of information to assist with choices in fixed telecoms: 11% are aware of www.cpi.org.uk and 11% of www.phonebills.org.uk.

Businesses

• small businesses have more fixed lines per employee than medium-sized businesses, but spend less per line as they tend to use more basic services;
• 36% of businesses currently use more than one supplier - a rise from 31% in August;
• 46% of medium businesses have switched fixed line supplier at some time, compared to 25% of small businesses;
• 46% of businesses rent at least some of their telephone equipment, and 13% of all SMEs felt it was important to be able to rent from their telephone supplier in the future; and
• overall satisfaction has fallen to 88% (from 94% in August), possibly a delayed reaction to the drop in satisfaction with value for money reported in August, or caused by one of the many other aspects of service which comprise overall satisfaction such as customer service or fault repairs.

Recent ad-hoc projects

Consumers' views of broadband Internet services

Awareness of broadband was highest among narrowband unmetered Internet access users. The most attractive features mentioned were increased speed and the ability to make voice calls whilst connected.

Unmetered access and the always-on nature of broadband were valued less, not surprisingly, given the wide availability and use of narrowband unmetered packages.

Existing broadband users thought it unlikely they would revert to narrowband services. These consumers claimed the faster speeds and always-on access increased usage and enhanced enjoyment.

While narrowband users who tested broadband access during these groups believed it made surfing more enjoyable, many could not justify the expense with their current usage patterns.

Oftel's consumer guides - what did consumers think?

Consumers were asked to discuss various details of the four leaflets produced by Oftel (What is Oftel?, How to complain about your telephone service, Your rights as a telephone user, and Choosing a telephone company). Oftel has used the results to produce one leaflet combining the relevant information from each leaflet. The results also allowed Oftel to identify the need for a separate guide on mobile phones.

Forthcoming research projects

International comparisons of Internet use

This joint project with the DTI and Office of the e-envoy will compare UK business and residential consumers' behaviour in the Internet and broadband markets with consumers in France, Germany, Italy, Sweden, Canada, Japan and the American states of California and Ohio. Why, and in what ways, does use of Internet and broadband differ across these countries?

Consumers use and choice of mobiles
Are consumers getting the cheapest/best deal from their mobile service? This project will investigate usage patterns, switching behaviour, awareness of alternatives, and reasons for their choice of package/network

International Roaming

With the Irish regulator, ODTR, Oftel will look at UK and Irish consumers' use of mobiles abroad, asking whether consumers are aware of, and using, the alternatives available to lower roaming costs.

Contact Lisa Etwell (tel: 020 7634 8741 / e-mail: lisa.etwell@oftel.gov.uk) for more details on Oftel's consumer research programme. All of Oftel's research, including the latest figures shown above, is published here.