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Consumers' use of public payphones - Research conducted for Oftel by NOP World -
October 2002

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Published 27 January 2003

Contents

Chapter 1 Introduction

Chapter 2 Summary findings Main findings

Chapter 3 Frequency of payphone usage

Chapter 4 Reasons for using payphones

Chapter 5 Substituting other methods of telephony with payphones

Chapter 6 Impact of mobiles on payphone usage

Appendix 1 Questionnaire


Chapter 1

Introduction

Objectives

1.1 This study, conducted on behalf of Oftel, by NOP World during October 2002, examined consumers’ use of public payphones. This research will contribute to a review and consultation exercise on the regulation of payphones, being conducted by Oftel during 2003.

1.2 The report makes comparisons, where appropriate, to previous payphone usage research conducted in November 2000, the full report can be found at www.oftel.gov.uk/publications/research/2001/pay0201.htm.

1.3 The survey was conducted for Oftel by NOP World amongst 1995 GB adults during October 2002. The report has been prepared by Oftel, based on the results provided by NOP World. It focuses on frequency and reasons for payphone usage, and the impact of mobile phones on payphone usage:

  • frequency of payphone use;
  • profile of regular payphone users?;
  • types of calls made;
  • use of payphones for certain calls;
  • awareness and use of prepaid calling cards;
  • impact of mobile phones on payphone usage.

1.4 Public payphone - Consumers were given a clear definition of what, for the purposes of this study, was meant by ‘public payphone’. This included public phone boxes only, and not private payphones such as those found in hotels, bars, restaurants, or residential accommodation.


Chapter 2

Summary of key findings

Use of payphones has fallen in the past two years

2.1 Currently 4 in 10 GB adults use payphones compared to 5 in 10 around 2 years ago. 1% claim this is their main method of telephony. Those most likely to use payphones regularly (ie. at least once a month) tend to be consumers without a fixed line phone, 15-34 year olds and those living in rented accommodation. There is a correlation between housing tenure, with those in rented accommodation less likely than home owners to have a fixed phone.

2.2 The most popular type of calls made by payphone users from public payphones are short calls for convenience or to leave a message, and local calls.

Mobile ownership appears to have affected use of payphones

2.3 6 in 10 (62%) of mobile customers claim to use payphones less or not at all as a result of owning a mobile phone, while around 1 in 10 continue to use them alongside mobile usage. Consumers most likely to continue using payphones alongside mobile usage are generally younger, low income groups and those using pay as you go mobiles.

1 in 10 GB adults use payphones rather than fixed and/or mobile for certain calls or at certain times.

2.4 The most popular circumstances where consumers use payphones over their fixed or mobile phone were – for certain calls or at certain times due to cost (15%) or to call directory enquiries because this is cheaper from a payphone – 14%, this was mentioned by significantly more consumers with mobiles (17%) than fixed phones (12%).

2.5 A similar proportion (15%) of mobile customers claim to call 0800 from payphones when out and about rather than use their mobile to avoid the charges made by mobile operators for these types of calls.


Main findings

Chapter 3

Frequency of use of public payphones

3.1 Use of payphones has fallen in the past 2 years. Currently 39% of residential consumers claimed to use a payphone, down from 50% in November 2000. 5% said they use public payphones at least once a week, 5% on a monthly basis, 17% use payphones a few times each year and 12% use them less frequently.

Figure 3a: Frequency of payphone use
Base: GB adults, Oct ’02 (Base: 1995)

3.2 In total 1% of residential consumers consider payphones to be their main method of making and receiving calls – largely younger, DE social grades, non-working consumers and those without a fixed or mobile phone. Home fixed phones remain the most popular method – 77% and mobile phones are considered to be the main method of telephony for 19% of GB adults.

Who are regular payphone users?

3.3 Figure 3b shows frequency of payphone usage, in terms of those using a public payphone at least once a month, across Great Britain and amongst a range of subsections of the population. Similarly to findings in November 2000, the most regular users of public payphones remain:

  • Consumers without a fixed phone at home;
  • Younger consumers, particular aged 15-34;
  • Consumers in rented accommodation. 

3.4 Unsurprisingly the key factor in frequent payphone usage is necessity as a result of not having a fixed line phone at home. There is a correlation between housing tenure, with those in rented accommodation less likely than home owners to have a fixed phone.

3.5 Older consumers, particularly those over the age of 55, remain least likely to use a payphone on a regular basis as to a lesser extent, are AB social grades, those in higher earning households and those with fixed phones at homes.

Figure 3b: % adults use public payphones at least once a month
Base: GB adults, Oct ’02 (Base: 1995)

Awareness and use of alternative payphones

3.6 Payphones offer varying levels of service – for example not all payphones allow directory enquiry, freephone or incoming calls. 

3.7 Awareness of these varying levels of service amongst payphone users stands at around a third (31%). Higher than average awareness is prominent amongst middle aged customers and those from higher earning households. Older payphone users (aged 55+) were amongst those least aware of these differences and frequency of use did not appear to be an influence.

3.8 There are also various types of payphone for example public phone boxes in the street, managed payphones in train stations and private payphones such as those in bars and hotels. Costs may vary between payphone type and generally speaking private payphones are more expensive. Figure 3c shows payphone users’ perceptions of the varying costs between the alternatives.

Figure 3c: Payphone users’ perceptions of most expensive payphone type
Base: Payphone users, Oct ’02 (Base: 792)

3.9 In total just over half (55%) of payphone users are unaware that calls from privately owned payphones may be more expensive than calls from other payphones. A third (34%) thought calls from all types of payphone cost the same. However, this does not necessarily mean that these consumers are suffering as they may not use private payphones very frequently, if at all.

3.10 Awareness of the possibly higher costs of privately owned payphones was highest amongst higher social grades, consumers living in rural areas, and those with a high household income. Awareness did not vary significantly according to frequency of use.

3.11 In spite of the varying costs between payphones, convenience appears to be more important to payphone customers. The majority (82%) who thought certain payphones were more expensive said they would use the most convenient phone rather than find a cheaper alternative. However, 13% claimed they would choose the cheapest payphone, which for the majority meant using a public phone box.

Awareness and use of prepaid calling cards

3.12 Prepaid calling cards offer cheaper call charges to certain numbers. To use them you dial a freephone number which connects you to the fixed line operator you wish to use, then dial the number you want to call.

3.13 Around a third (31%) of consumers are aware of these cards. A quarter of those aware claimed to have used them which equates to just under 1 in 10 (8%) of adults in total. Those most likely to have used these types of cards are younger consumers, AB social grades and those with a high household income.


Chapter 4

Reasons for using public payphones

Types of calls made from public payphones

4.1 Payphone users continue to make a variety of calls from public payphones (figure 4a). Local calls remain by far the most popular made by almost 7 in 10 payphone customers, twice as many as the second most popular type of call – calls to mobiles (35%). Least frequent were international calls and freephone calls to use prepaid calling cards – each made by around 1 in 10 payphone customers.

4.2 Directory enquiry calls were made by almost 3 in 10 payphone customers and were most popular amongst the 15-34 age groups, those without a fixed line phone and to a lesser extent, mobile customers.

4.3 Calls to freephone numbers from payphones were made slightly less frequently at around 1 in 10 (13%) and a similar proportion use public payphones to receive calls (9%).

Figure 4a: Types of calls made from public payphones (prompted)
Base: GB adults ever use payphone, Oct ’02 (Base: 792)

Nature of calls made from public payphones

4.4 Consumers who use public payphones do so for a variety of reasons. The most popular unprompted reason is to make arrangements for example asking to be picked up / ordering a taxi, or calling to say they’re on their way / have been delayed / or have arrived – half (49%) of customers said they made calls of this nature.

Other reasons for calls made from payphones included:

  • convenience (21%), calling from a shop, leaving a short messages/reminders;
  • calling for a chat (17%) which was highest amongst consumers without a home phone;
  • calls of necessity eg arranging appointments, calling utilities, school etc (13%);
  • making a call to ask someone to call back (4%).

Circumstances in which payphones are used instead of alternative methods

4.5 Payphone users generally use payphones for two main reasons. Given the rise in mobile ownership since November ‘00, it is perhaps no surprise that the most common use of payphones is when payphone customers’ mobiles are not working ie. run out of battery/credit or when they haven’t got their mobile with them, mentioned by half (48%) of payphone users. The proportion of regular payphone users (use at least monthly) who mentioned this has risen from a quarter (24%) in November 2000 to 40%.

4.6 The second reason simply being ‘when out and about’ (45%), largely non-mobile customers. Other circumstances mentioned but to a significantly lesser extent are shown in figure 4b below. 5% of payphone users have established calls to certain numbers are cheaper from payphone and claim to use this to their advantage. These tend to be lower social grades and those without a fixed phone. Substitution of mobile calls with payphones is discussed in section 5. 

Figure 4b: Reasons for using payphones rather than alternative methods (unprompted)
Base: Payphone users, Oct ’02 (Base: 792)


Chapter 5

Substituting other methods of telephony with payphones

5.1 Some consumers actively substitute calls from their home fixed and/or mobile phone with calls from payphones in various circumstances, as shown in figure 5a below. In total almost a third (31%) of payphone customers’ substitute at least some of their home fixed line or mobile calls with use of payphones. This equates to 11% of all adults.

Figure 5a: % substitute fixed or mobile calls with payphone in variety of circumstances
Base: Payphone users with either fixed and/or mobile phone, Oct ’02 (Base: 758)

* based on payphone users with mobiles

5.2 The most popular instances being to make calls at certain times or for certain calls because they are cheaper (15%), or for calls to directory enquiry services (14%). Specifically amongst mobile customers that use payphones, calls to 0800 numbers were made by 15% - to avoid the charges made by mobile operators for these type of calls.

5.3 Customers more likely than average to use payphones as a substitute for at least some of their calls from other methods of telephony, tend to be younger consumers (15-34) and lower social grades.


Chapter 6

Substitution of payphones with mobiles

6.1 Mobile phone ownership has affected payphone usage in various ways. Currently 60% of mobile customers never use payphones. In total around 3 in 10 stopped using payphones after purchasing a mobile. A similar proportion reduced their use of public payphones (30%), as shown in figure 6a. A further third of mobile customers continue to use payphones to the same extent as before.

Figure 6a: Impact of mobiles ownership on payphone usage
Base: Mobile owners, Oct ’02 (Base: 1465, don’t knows have been excluded)

6.2 Those most likely to have stopped using payphones all together are younger consumers, AB social grades and higher income groups. Consumers most likely to have reduced their use of payphones since owning a mobile are middle aged, higher income groups and those using a monthly subscription package.

6.3 Mobile customers continuing to use payphones alongside use of their mobile tend to be older consumers, low income groups and to a lesser extent those using pay as you go mobiles.

6.4 Unsurprisingly, the main reason mobile customers have reduced or stopped using public payphones is that they now use their mobile when out and about instead. Text messages from mobiles also appear to have affected payphone usage, a fifth (21%) of mobile customers who reduced or stopped using payphones claim to send text messages instead, as shown in figure 6b.

Figure 6b: Reasons for no longer using or reducing use of payphones
Base: Mobile owners who stopped using payphones or currently use payphones less than they used to, Oct ’02 (Base: 873)

 


Appendix 1

Questionnaire 

Telephones

Q1. Firstly, do you have a fixed line phone in your home?

Yes
No

Q2. Which of these do you consider to be your MAIN method of making and receiving telephone calls?

Public payphone
Mobile phone
Fixed line phone at home
Fixed line phone at work
Other
Don’t know

Q3. How often, if at all, do you use a public payphone? By public payphone, I mean public phone boxes, not payphones in hotels, bars, restaurants or residential accommodation.

Every day
At least once a week
At least once a month
A few times a year
Less than once a year
Never
Don’t know

Q4. And what type of calls do you make from public payphones? What others?

Q5. And in what circumstances or situations do you use a public payphone rather than an alternative method? What others?

Q6. How often, if ever, do you use a public payphone for the following purposes? Please tell me whether it’s Frequently, Sometimes or Never.

Local calls
Long distance calls to people in this country
International calls
Calls to mobile phones
Calls to directory enquiries
Calls to freephone numbers to access prepaid calling card services
Calls to other freephone numbers
To receive calls from other people

Q7. Some payphones offer different levels of service to others, for example some don’t allow incoming calls or calls to freephone numbers and don’t offer a directory enquiries service. Before now, were you aware of this, or not?

Yes
No
Don’t know

Q8. Thinking now about the different types of payphones available such as public phone boxes in the street, managed payphones in train stations and private payphones such as those in pubs, hotels and restaurants, which do you think are the most expensive or do you think they all cost about the same?

All cost the same
Public phone boxes in the street
Managed payphones in train stations
Private payphones in pubs, hotels and restaurants
Don’t know

Q9. Do you choose to use one type of payphone instead of another because of the cost, or do you use whichever is most convenient regardless of the cost?

Use most convenient
Choose which payphone
Don’t know

Q10. Which type of payphone do you prefer to use when you choose one instead of another?

Public phone boxes in the stree
Managed payphones in train stations
Private payphones in pubs, hotels and restaurants
Don’t know

Q11. Thinking about your use of payphones, please tell me if each of the following statements applies to you, or not?

Yes No Don’t know
I use a payphone rather than a fixed or mobile phone at certain times or for certain calls because it is cheaper
I call directory enquiries from a payphone rather then a fixed or mobile because it is cheaper
I call directory enquiries from a payphone but then call the number I’ve obtained from a mobile or fixed phone instead
I call 0800 numbers from a payphone when out and about because I would be charged if I called from my mobile
I call long distance or International numbers from a payphone because it’s cheaper than calling from a fixed or mobile phone

Q12. You can purchase pre-paid telephone cards which offer cheaper call charges to certain numbers; you dial a freephone 0800 number to be connected to the fixed line operator you wish to use, then dial the number you want to call. Before now were you aware of this, or not?

Yes
No
Don’t know

Q13. And have you ever used any of these cards to make a call from a public phone box, or not?

Yes
No
Don’t know

Q14. Do you personally have or use a mobile phone?

Yes
No

Q15. Which of these statements best describes the mobile package that you have? If you have more than one mobile phone, please think about the one you use the most.

Pre-paid package, that is after paying a one-off fee for the phone, ‘top-ups’ are bought as and when required
Monthly subscription contract, that is line rental and call charges are paid each month
All in one package, that is the phone and any line rental is paid in advance and calls are either billed monthly or paid for by call vouchers
Other
Don’t know

Q16. Since owning a mobile phone do you use payphones more, less or about the same as before? Would you say…

A lot more
A little more
About the same
A little less
A lot less
Don’t know

Q17. How often, if at all, did you use a public payphone before you owned a mobile phone?

Every day
At least once a week
At least once a month
A few times a year
Less than once a year
Never
Don’t know

Q18. Which of the following statements best describes why you use payphones less than before? 

You use your mobile to make all calls when out and about when you would have used a payphone
You use your mobile to send text messages when out and about when you would have used a payphone
You use your mobile to make most calls when out and about but still use payphones to call certain numbers i.e. 0800, directory enquiries, International
You make less calls than you used to
Other (specify)
Don’t know


 

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