|
|
|
|
 |
|
|
|
|
|
|
|
 |
 |
 |
|
||||
|
Consumers’
use of mobile telephony: |
|
||||||
 |
 |
 |
|
||||
 |
|
|
|
 |
|
||
|
|
|
|||||
|
Q3 November 2000 Which consumers are using mobile phones? Customer satisfaction with mobile service Annex A : NERA price model – update to September 2000 1.1 This report provides an overview of the key findings in the mobile market, taken from third quarter 2000/01 of Oftel’s quarterly residential consumer survey conducted in November 2000. Results from previous quarters (conducted in May and August 2000) are used for comparison purposes and referred to throughout this report. 1.2 The report provides trend information on which subsequent quarterly results can be compared and examines differences between consumers with different social characteristics. The report has been prepared by Oftel, based on the results provided by MORI. 1.3 The survey was conducted for Oftel by MORI, amongst 2133 UK adults during November 2000, of whom 62% claimed to personally have a mobile phone. A further 9% who do not personally use a mobile, claim to live in a home with at least one mobile. 1.4 This report covers:
1.5 Other issues addressed in recent quarters include
Mobile usage 2.1 Mobile ownership continues to rise. During November 62% of UK adults claimed to have a mobile, up from 54% in August. Furthermore, mobile penetration amongst the UK population (adults and children) has risen by 4 million since August, to 35.8 million subscribers in November 2000. Just over 7 in 10 UK homes now claim to have at least one mobile phone. 2.2 5% of UK homes claimed to use mobiles instead of fixed phones, and were spending more per month (£29) on their mobile usage than other mobile customers (£21), and as much as the average fixed phone monthly spend. Previous surveys reported this was mainly a result of their preference for the greater flexibility and ability to control costs offered by pre-pay mobiles. 2.3 Pre-pay packages continue to grow in popularity, currently favoured by almost 7 in 10 residential customers. They remain particularly popular amongst mobile-only homes, just over 4 in 5 of whom said they used pre-pay packages. Mobile customers 2.4 Mobile usage continued to rise amongst all sections of the population between August and November. Whilst usage remains highest amongst the higher income groups and younger consumers (over 80% of whom now have mobiles) the profile of users in terms of social grade continues to change with a slowly increasing proportion of DE social grade customers. Satisfaction with mobiles Overall customer satisfaction with mobile services was slightly lower than in previous months at 90%. We will continue to track this measure and identify any possible causal factors for this apparent decline in satisfaction. Satisfaction with mobile usage abroad Of the 1 in 7 customers using their mobile to call to or from abroad on a regular basis, about half said they were satisfied with the price of these calls. However, satisfaction was considerably lower amongst customers who had never, or only once used their mobile to make calls to or from abroad, perhaps supporting findings from the previous survey that identified price as a potential barrier to greater usage for a significant minority of customers. Additionally, just less than half of customers said they were satisfied with the cost of calls to other mobile networks.
Mobile phone usage 3.1 Mobile ownership continues to rise. 62% of adults surveyed in November 2000 claimed to have a mobile phone, up from 50% in May (figure 3a). This equates to about 29 million adult users. However, when asked about other mobile subscribers in their household (adults and children), mobile penetration rose to a conservative 34 million, a rise of over 2 million in the last three months. If anything, this conservative estimate is slightly lower than industry subscriber estimates for the same period (Fintec Mobile Communications November 2000 estimate 35.8 million subscribers). Figure 3a Mobile growth - % adults who have a mobile phone
(Source: MORI surveys) * Note - Figures up to March 2000 are based on GB population. Figures from May 2000 onwards include Northern Ireland and therefore represent the UK adult population. 3.2 71% of UK homes claimed to have at least one mobile phone (figure 3b). (This includes both adult and child users, but we are unable to accurately establish from this survey the split between the two). The vast majority of mobiles were personally owned rather than provided through work. Figure 3b % UK homes with at least one mobile phone
Base: UK homes 3.3 7% of UK homes claim to be without fixed phones. The proportion of these using mobiles instead remains high at about 7 in 10, which equates to about 5% mobile-only homes in the UK. This is broadly consistent with findings from the May and August surveys and can be seen in figure 3c below. Figure 3c Penetration of mobile telephony in UK homes
Base: UK homes Note – rounding of data resulted in occasional months showing totals of 101% How many consumers use each network? 3.4 A comparison of MORI’s Oftel survey with published sources of mobile market share information (in terms of numbers of subscribers using each of the four networks), confirms that the survey is broadly reflective of the current mobile market in terms of the proportion of customers using each network. Figure 3d shows industry subscriber figures published by Fintec Mobile Communications for November 2000. Figure 3d % mobile users using each network
Base: UK mobile users (Fintec Mobile Communications, November 2000) What mobile packages are consumers using? 3.5 Overall, pre-paid packages continue to grow in popularity, preferred by 68% of mobile users (figure 3e). Just over 4 in 5 mobile-only homes said they used pre-pay packages. Figure 3e Profile of mobile package usage
Base: UK Mobile users 3.6 Pre-pay packages were most popular amongst DE social grades / low income groups, 4 in 5 of whom used pre-pay packages. They also tended to be more popular amongst women than men, and amongst customers over the age of 55, than middle age groups. 3.7 Monthly subscription packages remained more popular amongst AB social grades / high income groups, over a third of whom used these post pay packages. They were also favoured by men more than women, and in homes with Internet access. 3.8 There were fewer distinct features of consumers using all in one packages (ie where phone and line rental is paid in advance and calls are either billed monthly or paid by call vouchers). How much are consumers spending on their mobile service? 3.9 Average monthly mobile spend was about £21, although this has been inflated by a small number of high spenders and in fact two-thirds of mobile users spend less than this each month. This is illustrated in figure 3f. These average monthly spends are similar to those reported in August 2000 and as prices continue to fall (see latest price trends in appendix 1) this indicates that customers are using their mobiles more than previously. This is supported by Oftel’s Market Information publication which reported a 69% growth in mobile minutes in the year to June 2000. Figure 3f Average monthly mobile spends
Base: UK Mobile users (November 2000) 3.10 Average monthly mobile spend increased with social grade and household income - heavy spenders were typically high income groups, large households, and heavy fixed line spenders, but equally, homes without a fixed phone. Average monthly mobile spend decreased with increasing age, and was lowest amongst customers over the age of 55. 3.11 Aside from differences by customer type, spend varies quite considerably by the type of mobile package used (figure 3g), with those using monthly subscription packages spending twice as much as those using pre-pay. Figure 3g Average monthly mobile spends by type of mobile package
Base: UK Mobile users (November 2000)
Which consumers are using mobile phones? 4.1 Figure 4a shows mobile ownership levels amongst various demographic groups of the population. Mobile ownership is still largely dependent on income and age. 4.2 Ownership remains highest amongst the high income groups (more than £30,000 annual household income) and younger consumers (aged 15-34), over 80% of whom claimed to have a mobile. Usage fell with increasing age to just 9% amongst consumers over the age of 75. It was also significantly lower than average amongst lower income groups and consumers not working, about half of whom said they used a mobile. 4.3 Mobile customers were more likely than those without mobiles to have other technologies at home including pay TV, PC, and home Internet. 4.4 Figure 4b shows combined quarterly rolling data from the May and August, and August and November surveys for geographic regions, to provide more robust sample sizes (minimum of 200 for each area) on which to base conclusions. Figure 4a % UK adults with mobiles
Figure 4b % UK homes with at least one mobile
Base: UK adults Base: UK homes* 4.5 Between January ’99 and May ’00 there was a slight shift in the profile mobile phone users. This is illustrated in figure 4c. Although still prevalent amongst the younger and middle age groups, and higher social classes, distribution had experienced a slight shift towards the lower social grades and to a lesser extent older consumers. Since May the proportion of DE social grades has continued to rise, albeit slowly, although in terms of age there has been little change in the profile of mobile customers. Figure 4c Changing profile of mobile usage
Base: Mobile users Mobile-only homes 4.6 7% of UK homes had no fixed phone in November. 73% of these homes (which equates to 5% of all UK homes) currently use mobiles instead of fixed phones. Just over 4 in 5 mobile-only consumers use pre-pay packages, higher than the average 68%. Preference for the flexibility and convenience that mobiles offer, particularly pre-pay in relation to managing costs, were previously found to be the main drivers behind this trend. 4.7 Spending an average £29 each month on their mobile bill (significantly higher than £25 in previous months), they spend more than mobile users generally (average mobile monthly spend £21). Equating to over £80 per quarter, these mobile-only users are spending as much as the average fixed line customer (who spends about £80 per quarter). This suggests that these consumers are either not familiar with fixed line charges and perhaps overestimate them, or that the greater control and convenience of mobiles is more significant than cost alone.
Customer satisfaction with mobile service 5.1 Overall customer satisfaction with mobile phone service, at 90%, was slightly lower in November than in previous months (93% September, 94% May). We will continue to track this measure over coming months, to determine whether this is a one-off result or the start of the downward trend, perhaps due to increased congestion as mobile usage becomes more widespread. Differences between customers of different networks and mobile packages are shown in figure 5a. Figure 5a Customer satisfaction with mobile phone service
Base: UK mobile users (November 2000) 5.2 There was some variation in satisfaction levels between customers of different networks and using different mobile packages, but there was little other difference in satisfaction levels between consumer groups. Heavy mobile spenders (more than £30 per month), and mobile-only customers tended to be slightly less satisfied than average with their mobile service. Coverage and quality of service experiences 5.3 Previous surveys reported an average 1 in 3 mobile customers who said they experience problems with coverage and quality of service at least sometimes, whilst the majority said they rarely or never have any problems. Inability to make and receive calls was the most common problem, experienced by 37% of mobile users sometimes or frequently. 5.4 Higher spending customers experienced problems more often than low spenders (less than £10 per month), which is likely in most instances to reflect their greater usage. Hence it is unsurprising that these customers are less satisfied overall with their mobile service as they experience coverage and quality problems more frequently, as well as receiving larger bills. Satisfaction with call charges 5.5 Customers were asked how satisfied they were with the price of calls from their mobiles in a number of circumstances, shown in figure 5b. These included:
5.6 Almost half (46%) of mobile customers said they were satisfied with the price of calls to other networks, however a slightly higher proportion were either dissatisfied or weren’t sure. Figure 5b Satisfaction with mobile call charges
Base: UK mobile customers (November 2000) Use of mobiles overseas 5.7 1 in 5 mobile phone customers surveyed said they had used their mobile phone when abroad (14% frequently/sometimes, 6% only once). Frequency of use abroad remained highest amongst the AB social grades and higher income groups, about a third of whom have used their mobile abroad at least once. 5.8 Half of customers using their mobile abroad frequently or sometimes said they were satisfied with the price of these calls. This fell to a third amongst less frequent users (used abroad only once). 5.9 This might suggest that customers who were not satisfied with overseas call costs on the first occasion they used their mobile abroad have been deterred from doing so again. The August / September survey identified that price of calls was a barrier to greater use of mobiles when abroad for a significant minority of customers. 5.10 Similarly, about 1 in 5 (19%) mobile customers said they had used their mobile at least once to call an overseas number from the UK, again these were primarily higher income customers. 45% of customers who made calls to abroad frequently or sometimes said they were satisfied with the price of these calls. Again, this fell to a third amongst less frequent callers (called abroad only once). 5.11 Use of mobiles is still considerably lower than use of fixed lines to call abroad (estimates suggest about 40% of UK consumers make international calls from their fixed line phones). However, Oftel Market Information indicates an increase in international calls from mobile phones. Similarly, calls made from abroad on UK mobile phones are also on the rise. These can be seen in figure 5c. Figure 5c Call minutes to and from abroad
Source: Oftel market information (April 1999 to June 2000) 5.12 The average satisfaction levels with prices of calls shown in figure 5b include perceptions of customers who have not made these types of calls, and as a result, differ to the figures discussed in previous paragraphs which refer only to customers who have ever made the various types of calls. 5.13 Satisfaction amongst customers who had not made these types of calls was considerably lower than those who had (in the region of 10% said they were satisfied). This might imply that the price of these calls is a barrier to usage (given that so few thought them satisfactory). However, the large proportions of customers who said ‘don’t know’, suggests that it is more likely to be the case that they are unsure of the price of these calls and therefore unable to give an opinion on how satisfactory they consider them. This is broadly in line with previous findings that suggested whilst cost was a barrier for a significant minority of customers, for the majority, lack of need was the main reason for not making calls to and from abroad.
6.1 Mobile usage continues to grow at a rapid pace, and overall satisfaction with mobile services, whilst high at 90%, was lower in November than in previous months. It is too early to confirm whether this is a spurious result within the sample error margins, or whether there has been an actual decline in satisfaction, perhaps due to network congestion resulting from the increasing growth in mobile usage, or recent adverse weather conditions perhaps putting enhanced pressure on mobile telephony. 6.2 Consumers continue to get a better deal on their mobiles as the price of mobile calls continues to fall. However, dissatisfaction with the price of calls between networks was still of concern to a significant proportion of customers. Additionally, last quarter’s survey reported considerable confusion with the price of calls to mobiles from fixed lines, and that about half of fixed line customers said they tend to keep calls to mobiles shorter than if they were calling a fixed phone. 6.3 Oftel’s market information has reported a significant rise in both the number of mobile call minutes to abroad, and also whilst abroad. Just fewer than half of customers said they were satisfied with these charges, and the results indicated that costs remain a barrier to greater usage, for a significant minority of customers.
Annex A - NERA price model – update to September 2000 6.1 Prices of mobile telephony services fell by 4 per cent in the third quarter of 2000. This fall was due almost entirely to a reduction in the cost of monthly contract packages which were 6 per cent cheaper in September than in June. Prices of advanced contract and pre-paid packages were relatively unchanged from March levels. Figure 1: Trends in prices of mobile telephony by payment type (January 1999=100)
6.2 Overall prices were 9 per cent cheaper in September than at the start of the year and 24 per cent cheaper than at the start of 1999 when the monitoring exercise began. 6.3 By September pre-pay prices had fallen 21 per cent during 2000; monthly contract prices had fallen by 8 per cent. Advance contract prices remain relatively unchanged from end 1999 levels. 6.4 Prices also continued to decline for all types of users, particularly for ‘zero-use’ customers. Price falls during 2000 to September were similar for all types of user. Figure 2: Prices for mobile telephony by usage pattern
For further details see Oftel Mobile Price Index, October 2000.
|
|
||||||
|
|
||||||
 |
 |
|
|||||
 |
|
||||||
