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Prepared for Oftel by Research Works Ltd, 42 Hendon Lane, Finchley, London, N3 1TT April 2001 Chapter 1 Background and Research Objectives Chapter 2 Research Methodology and Sample Appendix A Qualitative Topic Guide Chapter 1 Background and Research Objectives Oftel is currently conducting reviews of both the mobile and fixed line markets and is interested in examining which method consumers choose to use to make and receive calls, and in what circumstances. Of particular interest was talking to consumers who used only a mobile phone and did not have or use a fixed phone at home. This is currently about 5% of the population. The overall aim of the research was to examine the factors that influenced the decision to make a telephone call from a mobile or a fixed line phone. That is the circumstances in which, and reasons why, consumers use their mobile instead of other methods of calling - for example, from fixed line phones. The key issues examined the potential influencing factors including:
Overall the objective was to understand if and why respondents substitute mobile calls for fixed line calls and vice versa.
Chapter 2 Research Method and Sample The research comprised fifty qualitative individual depth or paired depth interviews (in fact the sample actually comprised sixty five individual respondents), which were conducted face-to-face with a range of respondent types. All the interviews lasted between thirty to forty-five minutes, and all respondents were asked to complete a pre-task diary or log of calls to mobiles in the week prior to attending research. These were used as a prompt for respondents during the interview situation and also as an additional source of information in the post interview analysis. Sample
The overall sample structure was as follows: 50 individual/paired depth interviews (yielding 65 respondents in total):
London/S.East Rural (Kent Coast/Lydd)
East Anglia Rural (East Dereham)
Manchester Urban
Wales Urban/Suburban (Swansea)
It is important to emphasise that examination of respondents’ diary information indicates the local nature of many calls made. In rural locations in particular, respondents were typically calling friends or family in the same area or surrounding communities. Even in larger urban locations, calls were mainly being made to people living within a few miles of the caller. Overall, the number of national or international calls made was very limited. Virtually all respondents considered that a fixed phone was a necessity in any home. Most believed that it would be very difficult to completely substitute a mobile phone for a fixed phone, citing reception problems and reliability of connection as main concerns. The fixed phone is still regarded as the best option for lengthy `chats’, although health considerations as well as cost concerns were influencing this perception.
Respondents without a fixed phone were generally coping very well, even though some still felt that they would get a fixed line at some point in the future. Despite some practical problems and health concerns, it seemed that the mobile phone was operating very effectively in place of a fixed line. Internet usage is causing regular `blockages’ of the fixed line is many homes and the mobile is providing an alternative communication medium.
The mobile can also act as a `buffer’ between the user and their social network, with some respondents preferring to keep their fixed number private. Callers now regularly try mobile numbers as an alternative if calling the fixed number produces no contact – it is now generally assumed that everyone is contactable at all times.
Generally, the factors which most strongly influenced mobile choice were handset type and the views of friends or family. Cost factors, beyond the initial outlay, were not top-of-mind and respondents typically assessed cost and value according to gross spending over at least weekly periods. Pay As You Go phones were the preferred mobile choice for most respondents Unit costs for different call types were not recognised and the sample typically divided call costs into `expensive/peak’ and `cheaper/off-peak’, although most agreed that all mobile usage was more expensive than fixed line calling. Younger respondents were the most profligate in terms of mobile usage and the mobile seems to be their primary focus for all communication. Family stagers still make significant use of the fixed phone, but even this group are increasingly giving in to the temptations of `convenience’ and using mobiles more often. Only the older respondents, often living on limited incomes, are truly restricting mobile usage and maximising the benefits of the fixed phone. Text messaging has become an obsession for many younger mobile users and now consumes a large portion of their mobile spend. Payphones and the Internet are regarded as specialist forms of communication for niche situations. Overall, the sample seemed to feel that current mobile usage represented good value for money. Most appreciated the feeling of being `in touch’ and the flexibility offered in relation to social arrangements. Behavioural evidence indicates that convenience overrides most economic considerations and that a majority of respondents made the most expensive categories of mobile call on a reasonably regular basis without restraint. All types of call are regularly made from fixed phones and longer `chats’ were generally undertaken using the fixed medium. Mobiles were typically used for shorter calls to make arrangements and to `keep in touch’, as well as for text messaging and retrieval of voicemail. It was, however, clear that longer and more costly mobile calls were made without compunction if convenience factors dictated that it should be so. Changes in mobile and fixed phone usage could be affected by gross alterations in the most overt aspects of fixed phone costs (monthly line rental) and the overall levels of mobile phone costs (as perceived by consumers). Thus, a fifty percent increase in line rental would prompt consideration of the value of a fixed phone, while a fifty percent reduction in mobile call charges would relieve much of the current guilt associated with mobile usage and therefore generate new calls, extended calls and some substitution of current fixed phone calls. Overall, it seems that the mobile is substituting for some of the fixed line functions, especially where the fixed line is unavailable through other usage or where the mobile is acting a separate, `buffering’, channel for a sub-set of callers. Thus mobiles are often left on while at home to receive calls and used to make more urgent calls if the fixed phone is engaged.
There is a strong current assumption that people should `be in touch’ at all times and callers routinely try both fixed and mobile numbers when trying to make contact. The mobile offers complete convenience in terms of contact and this total flexibility is driving apparently unrestrained use of the medium.
As with the motor car, now that the true freedom offered by this technology has been recognised it seems unlikely that economic considerations can effectively moderate behaviour.
4.1 Attitudes Towards Fixed Phones Virtually all respondents considered that a fixed phone was a necessity in any home. Most believed that it would be very difficult to completely substitute a mobile phone for a fixed phone in the home, citing reception problems and reliability of connection as the main concerns. "The quality of sound on mobiles is not very good really"
"I’ve lost count of the number of times I’ve lost connections with someone" For many, the fixed phone represents the `inner sanctum’ of phone usage, used for really long chats with close friends and family. Equally, most respondents believed that there were obvious health benefits involved, since mobile phones were felt to be dangerous if used excessively. "I do think about what it does to you. I do get a very hot ear when I use the mobile for more than 3 or 4 minutes" Recently introduced fixed line tariffs and packages (including BT’s Talk Together) have created a feeling that most typical calls have become almost free and increased the consumer’s perception of good value for money. The fixed phone is typically used for all types of calls, including calls to mobiles. There was very little evidence that respondents were making conscious efforts to avoid making calls to mobiles or to keep these calls especially short – most of the sample seemed to feel that calling from a fixed line was the most economical option for calling a mobile. Few wanted to chat excessively when calling a mobile, but there was none of the urgency associated with calling from a mobile. Use of the Internet was very common in many of the younger and family-stage homes and it seemed that usage could be very heavy, especially following the introduction of unlimited Internet access packages. The Internet was being used by both adults and children (husbands were particular culprits) - which seriously affected the availability of fixed lines. Most of the respondents did not have a second fixed line for Internet use (although this was being considered by many) and therefore the fixed line could be engaged for lengthy periods, especially during the evening. "My son is on (the internet) for hours at a time. We have unlimited access in the evenings and weekends. The phone is tied up for long periods at the weekend" Some of the younger and family-stage respondents were, therefore, leaving their mobiles switched on during the evening in order to provide access for callers. Calls were also being made using the mobile if the fixed line was unavailable due to Internet usage (or through extended call usage by teenage children). "I play a lot of rugby so I have to arrange times to meet and pick people up. If the Internet is in use I have to use the mobile" A few respondents actually viewed their mobiles as convenient alternatives to the fixed phone and would use these to make a call if they wanted extreme privacy or simply could not be bothered to move to a room with a fixed phone. 4.2 Respondents without a Fixed Phone Most of this sample segment were in `flux’, as a result of factors such as debt, living in temporary accommodation or specific work considerations which made a fixed redundant. Some had left their parent’s home and had not `got round’ to setting up a fixed account. Respondents without a fixed phone were, mostly, still expecting that they would eventually get a fixed phone when their personal and living circumstances were more settled. In fact, most were managing very well with no fixed phone and a mobile as their main contact. The only practical concerns related to: batteries dying, the disinclination of some callers to phone a mobile number, other callers cutting short their calls because of perceived expense and the possible health risks associated with constantly using a mobile. In general, however, life without a fixed phone was reasonably normal and this group did not feel significantly disadvantaged. This group shared the general view that a fixed phone offered levels of reliability and service which might not be possible from a mobile and that costs would certainly be lower – however, it was clear that PAYG mobiles do offer a sense of control over costs which is not typical of fixed phones: "You have the line rental and then you never really know what the bill’s going to be….with the mobile I put twenty quid on there and I know how much is left and how much I have to play with…I do feel that I’m in control with the mobile…."
Although there were aspirations to have a fixed line in the future, it was obvious that some of the sample segment were in a position – both financially and in terms of lifestyle – to get a fixed line but had not been motivated to do so. When questioned regarding this apparent anomaly, they admitted that the attractions of a fixed phone were not especially compelling. 4.3 The Fixed Phone/Mobile Relationship There was a clear belief that the fixed phone is strongly linked to the home itself and some respondents were cautious about giving their home fixed phone number to new acquaintances – preferring to `start’ by giving their mobile number. It was often the case that only close family and friends were given the home fixed line number and represented an `inner circle’ of callers. There was a belief that the fixed number was closely associated with address information and that giving out the home fixed number might result in unwelcome access to their home address. Further, mobiles also allow the facility of ‘call screening’, an option many respondents still do not have on their fixed phone. As such the mobile could act as a `buffer’ between the user and their social network. "There have been plenty of times when someone from work has phoned the mobile and I just ignore it because I don’t want to talk about work. I couldn’t do that on the fixed line" There also seemed to be a very common pattern of behaviour amongst callers, which involved initially calling the relevant fixed line number and then, if encountering no answer or an answerphone, immediately calling the associated mobile number. "I’d call the home number first and then go straight to the mobile if they weren’t at home…if you need to talk then you need to talk…" There seemed to be a powerful impulse for immediate gratification in terms of communication that drove many mobile calls, when a message may have sufficed in the past. As a consequence, many respondents were increasingly leaving their mobiles switched on when at home, in order to receive calls. The mobile has created a culture in which it is assumed that most people are contactable all the time as a matter of course. In terms of being prepared to give up either fixed or mobile phone, it was clear that virtually all the younger respondents would not be prepared to give up their mobiles under any circumstances. If forced to make a choice, this group would undoubtedly choose to discard the fixed line. The older respondents would take exactly the opposite view, as they still feel most comfortable with the familiar technology of the fixed phone.
4.4 Choosing a Mobile Most of the respondents were using `Pay As You Go’ (PAYG) mobiles. The few with contract mobiles were generally motivated by retention of a favourable tariff. There were a number of instances of respondents selling beneficial contract mobiles for a healthy profit – particularly One-to-One’s free evening and weekend calls package. "I have 100 free minutes anytime from On-to-One. It’s a really old package. One-to-One themselves keep trying to buy it back from me. No chance!" Those with contract mobiles tended to have packages that included a number of free minutes for on-net calls and, where possible, these minutes were used for chatting to friends or family on the same network. As in previous research, there were indications of limited calling groups (driven both by call charge factors as well as a desire to `have the same phone as my best mate…’). Much of the mobile choice process was influenced by handset type and even some family-stage respondents admitted that they had requested a specific handset, rather than a particular network. Within families and close friendship groups there was some evidence of network harmonisation – but is seemed that handsets were still important: "We’re all on One-to-One, but the handsets are still nice – I wanted the same handset as my sister, so I got the same package as her…" Network choice was evenly spread and there were few obvious differences in user attitudes – except that One-to-One users recognised that their coverage was poorer than the norm and most aspired to switch to one of the broader-coverage networks such as Orange or Vodaphone. Orange was probably regarded as the `grooviest’ network in terms of presentation, services and innovation. Many respondents had received mobiles as gifts and therefore had limited input into the choice process - although the younger segment of sample had made it quite clear which handsets were `acceptable’ to the person buying the gift. "My daughter had to have the one from the ‘Charlie’s Angels’ film" Respondents had noted that PAYG mobiles were now very affordable, especially following the entry of Virgin into the marketplace. The `desirable’ handsets were felt to be those in the seventy to eighty pounds price category – the cheapest packages were often felt to feature unacceptably basic handsets (the most criticised and unexciting handset was felt to be the Philips `Savvy/C12’). There was general agreement that fixed phones would always offer cheaper calling than mobiles – and that, where possible, it would be sensible to make longer or more costly calls using a fixed phone. In practice, however, convenience factors confounded these aspirations in virtually all cases. The sample included respondents who regularly use their mobiles to make off-net calls during peak periods and some who had made international calls to another mobile during peak periods. In terms of call charges and tariffs, there was only a hazy understanding of current mobile cost levels. Most of the respondents assumed that peak call charges would be `somewhere around fifty pence a minute’, while off-peak charges would be either free or `about five pence’. Calling behaviour was restrained by a general feeling that using a mobile at peak times would be `expensive’ and thus calls were kept brief. There was little recognition that calling another mobile would be significantly more expensive than calling a fixed phone – many of the day-time calls made from mobiles were, in fact, being made to other mobiles: "because we’re all out and about…". Again, the chosen method for keeping costs down was to ensure that calls were very brief. There was no understanding that cost structures might vary between networks or that there may be differences in cost according to whether calls were made off or on-net. "I just assume that they (the networks) are all similar. The odd pence here or there. Is that right?" Broadly, the convenience factors associated with mobile usage were evidently so strong that detailed, informed, call behaviour had not been established. Instead, a vague and qualitative set of judgements - based largely upon avoiding longer calls when using mobiles or when calling mobiles during peak, daytime, periods – were typically employed. Off-peak calling periods were still felt to begin after six p.m. Respondents watched their overall mobile expenditure in an equally vague manner – once a typical spend level had been established (five to twenty pounds a week was seen as reasonable), then no further interest would be taken unless spending over a typical period varied significantly (say a fifty to one hundred percent increase). "I generally put in about £20 a month. I’ve occasionally gone over so I then have to curb my spending" Generally, the factors that most strongly influenced mobile choice were handset type and the views of friends or family. Cost factors, beyond the initial outlay, were not top-of-mind and respondents typically assessed cost and value according to gross spending over at least weekly periods. "My brother has a Nokia phone and he knows what he is doing. I thought I’d get the same then he can teach me" Unit costs for different call types were not recognised and the sample typically divided call costs into `expensive/peak’ and `cheaper/off-peak’, although most agreed that all mobile usage was more expensive than fixed line calling. "Yes there is definitely the assumption that mobiles are more expensive than the fixed line"
4.5 Using Mobiles The data indicates that a number of lifestage or lifestyle factors are involved in shaping usage of mobile phones: Younger users represent a very distinct segment of the marketplace. This segment can include users aged from teens to thirty, but is characterised by a set of attitudes towards the mobile phone which are strongly linked to lifestyle. These respondents see themselves as sociable, fashionable - `party animals’ in fact. Older users within this segment tend to be single or, if co-habiting, without children. In general, the mobile is viewed as an essential tool in terms of `operating’ in a social world, particularly as these respondents like to see themselves as busy and physically mobile: "You don’t want people to know that you’re sitting at home on your own – you want to be known as someone that’s out and about most of the time…." Importantly, this is the main group that keeps the mobile switched on when at home and uses a mobile to make calls even where a fixed phone is available. "I have to keep the mobile on all the time. That is what my friends call" Family-Stagers, with children, are also a very distinct segment. This group is very home-focussed, but also spends considerable periods `out and about’ in connection with child and family matters. The mobile is seen as vital for ensuring personal safety (of both self and children) and allowing important contact to be made while out of the home. This group, however, is conscious of call costs and generally prefers to use the fixed phone when at home: "I do save up longer calls to make when I’m back at home – I try to just use the mobile for quick calls to make arrangements or to change times when I’m on the move…" This group is predominantly focussed on a fixed phone for normal and home calling – but there was some evidence of mobile usage when fixed lines were in use (especially when the Internet is being used by other family members). "If the home phone is busy then I just use the mobile. It’s not a problem." Finally, Older Respondents generally displayed a very cautious attitude towards mobile usage. Many had been given mobiles by children following concerns about health or safety. "Mine was bought for me because I had a fall one day and lay there for a couple of hours with a broken leg"
Usage was pragmatic and very limited – most felt happy to use the mobile to arrange lifts or change arrangements while out of the home. Otherwise the main function of the mobile was to offer peace of mind to all parties. All longer calls and `chatting’ were undertaken using the fixed phone (and at off-peak times). This group were obviously very sensitive about cost and, equally, did not share the younger respondents sense that communication is worth the price involved: "I only have my pension to live on, so I really do have to watch the pennies – my daughter put £50 on to my mobile and that should last me for a long time…my friends and me have an arrangement – I phone them one week and they phone me the next, that way we spread the cost…’ In terms of other sample groups, there was some evidence of heavier users – but these were often making use of work mobiles to make some personal calls: "It’s OK, so long as I don’t push it too far…..". Most of these respondents also had PAYG phones for personal use and tended to carry both mobiles when out and about. It was apparent that respondents and their spouses/partners are quite regularly taking their mobiles abroad. Initially this seems to have been driven by business requirements, but mobiles are now being regarded as an important means of keeping in touch with home. Use abroad is very restricted and costs are expected to be high, but potential use in `emergencies’ has driven an increasing mobile presence. "I called my son from France because he was going to pick us up, but the flight was delayed, as per usual" A significant factor affecting levels of mobile usage may be risk to health. Most respondents were conscious of the possible problems associated with excessive mobile usage and tried to keep calls quite brief as a consequence. This was less of a concern to younger respondents who see themselves as `bullet-proof’ and whose casual attitudes towards mobile usage mirror their feelings about issues such as drugs, drinking, smoking and safer sex. 4.6 Mobile Calls – Text Messaging Text messaging was mainly used by younger respondents who openly admitted that, while texting may have started as a economical alternative to voice calls, it has now become a unique phenomenon in its own right. The medium has its own language and symbolism and there is evident competition to be the first to use `new’ images and expressions. Text is typically used to deliver rather superficial messages relating to topics such as:
On a more practical note, there was also usage of texting to make social arrangements – particularly broad-based invitations to meet friends: "You would send a message to say that I will be at such a place at such a time and everyone is invited….then you get messages back to say who’s coming…" Other text messaging was driven by a number of considerations. These included: texting ‘conversations’ with a number of people at once, which would replace 3 or 4 voice calls; being in school or college, in which voice calls would be impossible to make and finally whether "… you could be bothered to talk to someone". Text messaging is self-generating, with apparently superficial contacts producing large numbers of responses. For some of the younger respondents it was socially important to be seen to be receiving large numbers of text messages: "It lets everyone know that you’ve got a lot going on and loads of friends…" The younger respondents were evidently focussing on text messaging and, typically, seventy to eighty percent of their mobile spend comprised text message costs. "I probably send about 15-20 text messages a day" A few older respondents were making use of the texting facility on their mobiles (mostly men and mostly technophiles) and some of these had used free texting facilities provided by Internet sites. The problem with this was felt to be the large amount of advertising material associated with such messages: "The text messages are free but you get a lot of marketing rubbish tacked onto the end of the message…..sometimes I send a message to my work mobile and then edit out all the advertising gunk and forward it on…" Overall, texting was viewed as a standalone communication medium, generating unique patterns of usage in parallel with voice calling.
4.7 Other Communication Media Very few respondents were using any other communication media regularly, apart from mobile and fixed phones. A few were sending e-mails (often from work) but these were intended for recipients living a considerable distance away and often for quite specific purposes – sending photos, music, links etc. Respondents did not generally see e-mail as a substitute for voice calls, other than where recipients lived abroad and voice calling would be expensive. "I’ve got friends at different universities so we use e-mail. It’s free at college" Very few of the sample used pay-phones on a regular basis and these were seen as quite irrelevant to many. Female respondents were especially unwilling to consider using pay-phones, mainly because of the perceived security risks involved: "Pay-phones are mostly in out of the way places and you have to stop your car and get out if you want to make a call….I wouldn’t fancy that on a dark night…" Pay-phones were viewed as extremely expensive in relation to calling mobiles and respondents were very conscious of the credit `slipping away’ – mainly because of the visual display of call charges. All were unwilling to contemplate calling a mobile from a pay-phone, except in the direst emergency.
4.8 Fixed and Mobile Calls – Perceptions of Value Respondents generally agreed that mobile phone costs would always be more expensive than fixed phone calling, for all types of call. The introduction of fixed line packages such as BT’s Talk Together has increased the sense that fixed line calling, especially to local numbers, can be almost free. "I’m on that ‘Together’ thing on BT. So I think I get free calls in the evening and at weekends" Most of the sample believed that all fixed line costs would be low after six o’clock in the evening. Thus the fixed line was universally seen as offering the best value in terms of cost levels alone. The mobile phone, however, was seen as having a significant advantage over fixed lines – convenience. A majority of the respondents were unwilling to postpone necessary calls until a fixed phone was available. "If my Mrs is on the phone I’ll use my mobile to call people instead of waiting"
There were always good reasons why a call should be made using a mobile, usually relating to saving time, safety considerations or possible inconvenience for the person being called. It was obvious, however, that many very superficial peak-time mobile calls were also being made - many respondents routinely called close family members or friends on a daily basis, `just to say hello…’. The only concessions to cost over convenience related to the length of calls made – in general, respondents tried to keep mobile calls as brief as possible. Extended `chatting’ was felt to be more appropriate when using a fixed phone. Calling another mobile was not seen as an influential factor in assessing value and many of the peak-time mobile calls made were being made to other mobiles. Although resisting any detailed view about the value of mobile calls, most respondents did believe that lengthy local calls, national and international calls would represent considerable expense – and therefore poor value – if made from a mobile. Nonetheless, these calls would be made if the situation required it – most of the sample were not clearly constrained in their mobile usage by cost considerations. The only segment of the sample that was very careful about mobile usage and constrained by cost factors was the older user. Many of these respondents were generally very cost conscious about all aspects of their spending and regarded mobile usage as potentially very expensive. Even where the mobile costs of older respondents were being subsidised by external sources, such as children, there was a marked reluctance to make any calls other than those driven by safety or health considerations. "No, I’d still only use the mobile outside of the house and be on for about 1 minute" Overall, the sample seemed to feel that current mobile usage represented good value for money. Most appreciated the feeling of being `in touch’ and the flexibility offered in relation to social arrangements. Safety was the main `ethical’ consideration in relation to mobiles and many respondents justified much usage on the basis of the increased security felt by women in particular. "My daughter had a car accident about a year ago, quite a bad one. She was late home and I called her mobile, one of the ambulance men answered and explained the details to me. That is the value there." Behaviour indicates that convenience overrides most economic considerations and that a majority of respondents made the most expensive categories of mobile call on a reasonably regular basis without restraint. 4.9 Fixed and Mobile Usage – Diary Information It is important to emphasise that examination of respondents’ diary information indicates the local nature of many calls made. In rural locations in particular, respondents were typically calling friends or family in the same area or surrounding communities. Even in larger urban locations, calls were mainly being made to people living within a few miles of the caller. Overall, the number of national or international calls made was very limited. 4.9.1 Types of calls typically made, and not made, from a fixed phone: Typically:
Broadly, the fixed line is used almost without thought, especially after six o’clock in the evening when most calls are felt to be much cheaper. There would be awareness of time spent on the phone if calling over distance and particularly if calling internationally. Local calls are viewed as very low cost or even free – and these are not monitored for duration. For some, lengthy periods are spent on the Internet and most respondents see the costs of access as a feature of the particular Internet package. Overall, the fixed phone seems to represent the default option for many types of call and is largely assumed to be quite cheap to use. "When I’m at home I automatically reach for the fixed line. You just get used to it"
Few respondents actually check their fixed line bills and are happy provided that the total bill amount only varies a little against an expected figure. All types of call are made regularly and there were no obvious `taboos’ in terms of usage. 4.9.2 Types of calls typically made, and not made, from a mobile: Typically:
The most typical calls made from a mobile are brief contacts, while out of the home, to confirm or change immediate social arrangements (maximum two minutes). Many of the respondents felt that a mobile offered increased flexibility in terms of an ability to alter the structure of a social day – most friends and family also have mobiles and this allows changes to times and places of meeting. These calls may be brief, but they are almost always made to another mobile phone. "It just allow flexibility. Even if you are only 10 minutes late you’d ring to let people know" Younger respondents make many calls to friends in particular and these may be longer and involve a degree of chatting (three to five minutes). Many of these calls seem to be made in order to relieve boredom and it is not uncommon for these respondents to fill a dull walk home with mobile conversations. Many of these friends/family calls may, in fact, be made to mobiles on the same network, taking advantage of established calling groups. In many cases, however, the respondents had no clear idea of which network they were calling and this did not influence their decision to make the call. "I think some of my friends are also on Orange. That’s why I got mine. But outside of these there is a real mix" The great majority of mobile usage by younger respondents was text messaging. Although this was initially planned as a substitute for voice calling, it was clear that the volumes of text messages generated significant amounts of cost, probably exceeding the cost of the voice calls which might have been made. Many mobile users are also making use of their network’s voice mail facilities and some calls are made each day to retrieve messages from mailboxes. This is more typical of older respondents, since many younger respondents try to keep their mobiles on at all times. Most mobile users were unsure whether the local/national segmentation of call charging existed in the mobile world. Since they had to dial the national access code for each call, many assumed that charges were made against a uniform `mobile’ rate (divided only into peak and off-peak periods). Few would make international calls regularly using a mobile phone, since this was assumed to be very expensive indeed, but some respondents had called internationally (in one case to an European mobile number). The important decision factors seemed to be convenience and importance of the call. Few apparently waited until off-peak times to use their mobiles (in fact most were not accurately aware of their off-peak periods). The core motivations for mobile usage were mobility and convenience and therefore calls were made as necessary. "If I have to make the call then I will. I don’t wait until later in the day"
There was some awareness that off-peak mobile calling could be significantly cheaper, but this did not apparently affect the decision to use a mobile during peak times. Overall, the types of call made from a mobile do differ slightly from those made from a fixed line, in that the very presence of the mobile generates calling options which could not be considered from home. For many respondents, however, the mobile is an extension of the home fixed phone and the same group of people are called – but from different location contexts. 4.9.3 Summary of differences between fixed and mobile usage: Fixed phones are used with more apparent freedom (or less user guilt) than mobile phones. They are clearly expected to be much cheaper for all types of calls and are preferred for really lengthy chat sessions. Aside from cost considerations, this is partly related to concerns about the health risks associated with prolonged use of a mobile. Mobiles, however, have the power of immediacy and it was clear that many of the younger respondents simply did not have the patience to postpone calling until a fixed phone was available. Privacy and call urgency were regularly cited as key reasons for using a mobile – but the real opiate seems to be convenience, the sense of being in touch with social networks at all times and in all places. Consequently, cost is reduced in importance as a constraining factor for use – in many ways the mobile phone parallels the advantages of the car in terms of apparently offering extreme individual convenience and freedom in spite of obvious cost disadvantages. 4.9.4 Occasions when fixed phones are used instead of mobiles and vice versa: Usage of fixed phones is strongly linked with the home and considerations regarding household budgeting. Hence, many of the younger respondents were not focussed on the apparent advantages of using a fixed phone. "My mum and dad always paid the phone bill (fixed line). So I didn’t think about it at all…it was just a resource and I used it" In many ways the fixed phone represents the reliable, default, communication tool and is not seen in the context of lifestyle factors – consequently the mobile is generally much higher profile and does much more to `promote’ its own use. Even family stagers, who would claim to be interested in constraining spending on phone usage as part of their household budgeting, were still making significant use of their mobiles where a fixed phone could have been used. Few thought twice about using a mobile in the evening from home if the fixed line was in use, rather than simply waiting until the fixed line was available. The only segment of the sample which actively limits mobile usage and focuses upon fixed line usage, are the older respondents – often living on fixed and limited incomes. "If I’m in I use the BT line. If I’m out I use my mobile, but I always try to use the phone at home, the mobile seems like such a waste of money…" Currently, there is still a constraint on using mobiles for the most expensive types of calls (long national calls and international calls), but this constraint can easily be removed if the pass-words of `convenience’ or `necessity’ are invoked. Ironically, the factor which probably limits mobile usage much more than cost is concern over the possible damage to health caused by mobile phones. When explaining why they made long `chatty’ calls using their fixed line phones, many of the respondents mentioned worries about `frying their brains’ with a mobile. In the longer term, this seems much more likely to restrain mobile usage than concerns about expenditure.
4.10 Economic Factors Which Might Affect Either Fixed or Mobile Usage The main factor affecting all phone usage was convenience and this clearly took precedence over all other considerations, except amongst older respondents with limited budgets. Virtually all respondents admitted that they used their mobile far more than had been expected when it was initially purchased: "It’s one of those things….you get it for the odd emergency and then you find out how convenient it is and you start making more and more calls…I used to wait until I got back home to make a lot of my calls, but now I’m not so bothered – if I want to call then I call…." Given that a majority of respondents had no accurate idea of the actual costs involved in using their mobiles to make different types of calls, there was some difficulty in examining the likely impact of possible changes in cost levels. Equally, with fixed phone usage, there was even less understanding of actual cost levels, since new call packages have encouraged a feeling that all calling is heavily discounted. Perceptions of cost were linked to the most obvious and regular payments involved in using either type of phone:
Changes in these overt payments can affect phone usage – for example, one respondent had changed network following the phasing-out of five pound top-up cards by the provider. Changes in contract mobile rental costs would be judged in the context of the whole mobile package, including free minutes etc. Currently, most contract mobile users were either heavy mobile users or in possession of a very advantageous package deal. This meant that they were either relatively insensitive to cost increases or wholly focussed on retaining the existing deal. Most respondents feel that their fixed line rental costs are approximately ten pounds every month (whether billed monthly or quarterly). This is a very clear and consistent amount and respondents were quite easily able to make judgements about what level of increase might affect behaviour. Most felt that an increase of fifty percent in monthly line rental would make them consider the value of their fixed phone. Interestingly, a majority of the respondents took a very binary view of the fixed and mobile user relationship – if fixed rental costs increased significantly then most claimed that they would seriously contemplate getting rid of their fixed line or switching fixed line provider. Few felt that simply changing calling patterns would be sufficient. Some felt that the mobile could take over from a fixed phone, even allowing for problems with reliability. There was really no accurate understanding of fixed line unit call charges and so changes in these would only be considered in the context of the overall bill (which few actually check, provided that the total to be paid falls within the `normal’ range). Fixed line value is strongly defined by line rental costs. Equally, there was general agreement that a reduction of fifty percent in mobile phone call charges would generate both more usage of the mobile from home in place of the fixed line (probably as much as twenty percent substitution), as well as additional mobile calls (as much as double the number) during the daytime and increased duration of daytime mobile calls: "I think that, if calls halved in cost, then I wouldn’t be so conscious about making calls from the mobile – I’d stay on longer and make some calls which I would think twice about at the moment….I just wouldn’t feel as guilty about it I suppose…" Overall, there was a strong feeling that encouraging additional mobile usage would not be difficult and a cost decrease of much less than fifty percent would probably reduce current guilt about calls made. "I already use the mobile a hell of a lot…and I really have to stop myself from making more calls…if you told me that it had got cheaper then I’d be on the phone all the time…" Without the restraining influence of this guilt, it seems certain that call volumes and call duration would increase. Some substitution of mobile for fixed line calls also seems likely. "I know that I would use the mobile more in the evening – I already use in the evening, so I would feel free to use and not wait in line to use the home phone…" Equally, since fixed phones are seen as rather utilitarian and unexciting, relatively small increases in actual monthly cost could make some respondents consider the value of the facility. Appendix A Oftel - Mobile Substitution - Qualitative Research - Final Topic Guide - March 2001
Telephony History: ALL RESPONDENTS
Fixed lines
If yes: Do you pay the bill yourself? "do you have access to a fixed line"? If they don't pay the bill, you could also ask whether they significantly use this fixed line which they have access to. If no:
Mobiles
Perceptions of mobile costs (for a range of calls)
Current Mobile Usage Respondent and Interviewer to examine diary entries as a prompt for this section:
Do the calls you make from your mobile differ significantly to those from a fixed line? In what ways?
Fixed line Usage
What factors prevent them choosing their fixed rather than their mobile, or their mobile rather than their fixed?
Would consider getting rid of fixed or mobile? Which? Why / what circumstances? OR Why not? When? Summing-up: any other comments
OFTEL – TALLY OF DIARY DATA (1) Total calls recorded = 575
OFTEL – TALLY OF DIARY DATA (2)
OFTEL – TALLY OF DIARY DATA (3)
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