Contents

Chapter 1 – Fixed line market

Chapter 2 – Mobile market

Chapter 3 – Internet market

Chapter 1 – Fixed line market

Penetration

1.1 The proportion of UK homes with a fixed line has experienced a slight but significant rise to 95%. In line with this change the number of mobile-only homes has decreased.

Figure 1a: Penetration of fixed and mobile telephony in UK homes
Base: UK homes, Feb ‘ 02 (Base: 2138, 1% ‘don’t knows’ have been excluded)

Multiple suppliers

1.2. The latest survey shows that 79% of fixed line customers still use BT services, and around 2 in 10 people only use telecoms services provided by suppliers other than BT. Fixed line customers using alternative or additional suppliers to BT has stayed level around 29%.

Figure 1b: Residential supplier usage
Base: UK adults with fixed phone at home, Feb ’02 (Base: 1981, 1% ‘don’t knows’ have been excluded)

Average spend on fixed telecoms services

1.3 UK consumers spend on average £81 on fixed home phones per quarter. The February 2002 survey is consistent with the November 2001 results. Fixed spend increases with household income, household size and use of additional services such as Internet. Average spend has remained broadly similar in recent quarters.

Figure 1c: Average quarterly fixed telecoms spend, including rental, calls, metered Internet usage & VAT
Base: UK residential fixed phone customers aged 15+, Feb ‘02 (Base: 1981, ‘don’t knows’ have been excluded)

1.4 Fixed phone customers estimated that on average a fifth of their calls were to mobile phones. Households without mobile phones estimated that 10% of their fixed calls were to mobile numbers while the figure is 23% amongst homes with mobile phones.

Satisfaction

1.5 Fixed telephone lines remain the main method of telephony for over three quarters of people, and the majorities are satisfied with this method.

Figure 1d: % UK consumers using and satisfied with their main method of telephony
Base: UK residential consumers, Feb ’02 (Base: 2138)

1.6 Overall, 91% of residential customers were satisfied with their fixed telecoms service, which is slightly lower than last quarter (93%), driven by a drop in satisfaction with value for money. Satisfaction with reliability of service remains unchanged at 96%.

Figure 1e: Satisfaction with home fixed phone service
Base: UK residential fixed phone customers, Feb ‘02 (Base: 2024, don’t knows have been excluded)

Chapter 2 – Mobile market

Growth and penetration

2.1 For the first time, mobile usage among UK adults (age 15+) shows no growth. The current result of 73% appearing lower than the November survey (75%), but this is within error margins of the sample (see note one below) and should not be assumed to represent a real drop.

Figure 2a: Mobile growth – % *UK adults who have/use a mobile phone
Base: *UK adults, Feb ‘02 (Base: 2138)

*Note – Figures up to March 2000 are based on GB population and are taken from MORIs Technology Tracker. Figures from May 2000 onwards include Northern Ireland and therefore represent the UK adult population.

2.2 February 2002 survey found that there are 4% of mobile only homes, a drop from 6% in May, August and November 2001 results.

2.3 80% UK homes currently have at least one mobile phone. This figure includes both adult and child users, and has remained broadly similar in recent quarters.

Packages used

2.4 Prepaid packages remain most popular, preferred by 73% of UK mobile users. However, consistent with the apparent fall in mobile ownership amongst lower income groups (amongst whom pre-pay phones were most popular), prepay usage experienced a drop. The subsequent rise in the proportion of mobile customers using subscription packages (27%) indicates further that the apparent drop in ownership has been primarily driven by lower income and prepay users.

Figure 2b: Profile of mobile package usage
Base: UK mobile users, Feb ‘02 (Base: 1560, 4% ‘don’t know/other’ have been excluded)

Spend

2.5 Mobile consumers spend on average £20 per month on their mobile bill. There has been little change in recent months.

Figure 2c: Average monthly mobile bill
Base: UK mobile users, Feb ‘02 (Base: 1560)

Satisfaction

2.6 Overall customer satisfaction with mobile services remains fairly stable at 94%.

Figure 2d: % of UK mobile customers satisfied with overall mobile phone service
Base: UK mobile customers Feb ’02 (Base: 1560, 3% don’t knows’ have been excluded)

Note:

1. It should be noted that MORI under-surveyed AB socio-economic and higher income groups (traditionally more likely to have mobiles) and over-surveyed DE socio-economic and lower income groups during February (these groups are traditionally less likely to have mobiles), and to adjust for this, heavier weighting was required than normal. This may have contributed to a small impact to the apparent fall in mobile penetration.

Chapter 3 – Internet market

Penetration and distribution

3.1 Around 11.5 million homes in the UK are connected to the Internet. Internet penetration grew at a consistent rate until May 2001, after which it temporarily stabilised before continuing to rise to 46% by February 2002.

3.2 Personal computer (PC) ownership currently stands at 54%.

Figure 3a: % *UK homes with Internet access
Base: *UK homes, Feb ‘02 (Base: 2138)

* Note - Figures up to March 2000 are based on GB population and are taken from MORI’s Technology Tracker. Figures from May 2000 onwards include Northern Ireland and therefore represent the UK adult population.

3.3 50% of adults currently access the Internet at home or elsewhere such as at work/place of study/educational establishments, etc.

3.4 Ownership remains most prominent amongst the younger and middle age groups, higher social grades and the working population.

Figure 3b: Changing profile of homes with Internet access
Base: UK homes with Internet access, Feb ‘02 (Base: 824)

Packages and connection methods

3.5 43% of UK homes with Internet access are opting for unmetered products. This corresponds with the continuing decrease in use of calls only packages.

Figure 3c: Main type of Internet package used at home
Base: UK homes with Internet access Feb ‘02 (Base: 824, 18% ‘don’t knows/none of these’ have been excluded)

3.6 The vast majority (94%) of homes connected to the Internet, currently use a PC or laptop. Ordinary phone line/dial up remains the most popular method of access by households (88%) with Internet.

3.7 Based on recent subscriber figures 3% of Internet homes are using a broadband connection such as DSL or cable modem.

Satisfaction

3.8 Satisfaction levels remain fairly high, with 89% of Internet users claiming to be satisfied with their overall service at home.

Figure 3d: Customer satisfaction with overall Internet service at home
Base: UK homes with Internet access during, Feb ‘02 (Base: 824, 9% ‘don’t knows’ have been excluded)

3.9 All current reports, produced in February 2002, for fixed line, mobile and Internet markets are available on the Internet along with all reports from previous quarters, www.oftel.gov.uk/consumer/research/research_index.htm .