Published 27 January 2003

Contents

Chapter 1 Introduction

Chapter 2 Summary

Main findings

Chapter 3 Penetration and use of fixed telecoms in UK homes

Chapter 4 Consumers’ use of fixed telecoms operators

Chapter 5 Awareness and use of indirect access and carrier pre selection

Chapter 6 Use of e-mail and text instead of fixed voice calls

Chapter 7 Use and awareness of 0870 numbers

Chapter 8 Awareness of forthcoming changes to DQ services

Chapter 9 Awareness of comparable performance indicators and Oftel PASS

Chapter 10 Fixed number portability and mobility

Annex 1 Details of changes to quarterly survey sample

Annex 2 Q11 November 2002 residential questionnaire: fixed telecoms questions and ad hoc questionnaires

Chapter 1

Introduction

1.1 This report provides an overview of the key findings of consumer behaviour in the fixed telecoms services market, taken from the eleventh wave of Oftel’s quarterly residential consumer survey, conducted in November 2002. Results from previous waves are used for comparison purposes where appropriate and referred to throughout this report.

1.2 The report provides trend information and examines differences between consumers with different social characteristics. The sample and methodology were changed in May 2002. It is important to understand these changes and the effect this has on the results. Please see annex 1 for further details.

1.3 The main survey was conducted for Oftel by Recom (Research in Communications) amongst 2312 UK adults (see note 1) during November 2002, of whom 92% claimed to have a fixed line at home. Specific research conducted on awareness of 0870 numbers was conducted by MORI during February 2002 amongst 1009 GB adults ^{(see note 2)} aged 16+ and the section relating to indirect access (IA) and carrier pre-selection was conducted by ICM Research amongst 1001 GB adults (see note 2) aged 18+ with fixed line phones during October 2002, ICM also surveyed 154 GB adults currently using cable with a BT originated number in November 2002. The report has been prepared by Oftel (see note 3), based on the results provided by Recom, MORI and ICM. 

1.4 This report covers:

• penetration of fixed home phones;
• homes without a fixed line phone;
• use of fixed phone suppliers;
• switching behaviour;
• awareness and use of IA and CPS;
• spend on fixed telecoms and satisfaction with service received;
• use of e-mail instead of fixed voice calls;
• awareness of 0870 numbers;
• awareness of forthcoming DQ changes;
• awareness of CPIs and Oftel PASS;
• fixed number portability and mobility.

1.5 A copy of the questions is attached in annex 2. Topics to be researched each quarter are requested by Oftel project teams and results feed into current investigations and reviews in individual market areas.

Notes

1.This survey was conducted amongst a representative sample of UK adults, reflecting the UK profile of sex, age, social grade, region and employment status and representative of cabled/non cabled areas, rural/urban areas, and levels of deprivation. Data has also been weighted to ensure the sample is representative of the UK adult population.

2. This survey was conducted amongst a representative sample of GB adults, reflecting the GB profile of sex, age, region and housing tenure. Data has also been weighted to ensure the sample is representative of the GB adult population.

3. Because the surveys were conducted amongst a sample of adults, rather than the whole population, the data may be subject to a small margin of error. The error margin for the total sample of 2312 consumers is about 1-2%, for around 1000 consumers it is around 2-3% and for 154 consumers it is around 6-10% but higher amongst smaller subgroups. All data shown is weighted data. Unweighted base sizes are shown on charts and tables to show the number of people who were asked the question. Results referred to as 'significantly' different, have been tested at the 95% level of confidence and hence are outside of the error margins and therefore can be considered real changes. The report should not be seen as recommended best buys and should not therefore be relied upon when making purchase decisions. Oftel has conducted its own checks on the data in this report and whilst we consider it to be correct, Oftel accepts no liability in respect of any of the results provided to it by Recom, MORI and ICM or any decisions taken by any person in reliance on the report.

Chapter 2

Summary findings

Headline figures

• 92% of UK homes have a fixed line phone;
• £79 was the average quarterly spend on fixed telecoms (inc. calls, rental, VAT);
• 96% of adults were satisfied with their fixed telecoms service overall.

Previous fall in use of fixed phones has been sustained as some groups revert to mobile only usage

2.1 Fixed phone penetration amongst UK households currently stands at 92%, the previous fall in fixed phone penetration experienced in August 2002 has been sustained. The fall was caused primarily by younger and lower income groups reverting from fixed ownership to mobile only usage.

2.2 Supplier usage has remained unchanged over the last couple of years. Currently 8 in 10 fixed line customers use BT for some or all of their fixed line services. 7 out of 10 fixed line customers are aware of at least one alternative to their fixed line supplier in their area.

Switching in fixed market is broadly in line with energy markets

2.3 Around a quarter (23%) of fixed line customers claim to have ever switched supplier – however this figure increases to 38% including those using IA and CPS but who did not consider their use a switch. This figure is broadly in line with recent switching figures from both energy markets which stand at 40% each.

Fixed line customers are significantly more satisfied overall than those in the mobile and Internet markets

2.4 Overall satisfaction in the fixed market stands at 96% - unchanged since May 2002. This is significantly higher than in the mobile (93%) and Internet markets (90%). Satisfaction with reliability and value for money also remain at stable levels (97% and 81% respectively).

A third of consumers are aware of CPS and 3% currently use these services – with no significant barriers to usage

2.5 Awareness of IA is twice that of CPS (64% and 32% respectively), which is perhaps unsurprising given the relatively recent introduction compared to IA services. 16% currently claim to use IA compared to 3% using CPS – the majority (69%) said they use this alternative to gain cheaper calls.

2.6 3 in 10 customers of either IA or CPS use their alternative for all calls, whilst the remainder choose to divert specific types of calls – the most popular being International (26%), national (22%) and local (20%).

2.7 Overall, the majority (75%) of consumers did not experience any problems switching to their alternative supplier and few of those not currently using IA or CPS mentioned specific barriers to using either operator. Previous Oftel qualitative research reported that the brand image and reputation of suppliers was a significant factor in relation to take up of these services.

Awareness of cost to call 0870 and other numbers

2.8 Just over a quarter (28%) of all consumers were aware that calls to 0870 numbers are national rate. Awareness is highest amongst younger consumers (16-24) and mobile owners.

Some consumers send text messages and e-mails instead of some voice calls

2.9 At varying levels of frequency, 7 out of 10 mobile customers send text messages rather than voice calls from their mobile – just over a third (36%) do so frequently. While not quite as evident as for mobile voice calls around 2 in 5 mobile customers send text messages in a variety of circumstances rather than calling from a fixed line phone.

2.10 Convenience and cost are the main reasons consumers are choosing to send texts instead of making voice calls, be it fixed or mobile calls. Half claimed to send text messages when their home fixed line was tied up or connected to the Internet.

2.11 Three-quarters of adults with Internet send e-mails rather than make voice calls from their fixed line at home, at varying levels of frequency, this equates to around a third (35%) of all adults. The most popular instance where e-mails are sent instead of voice calls appears to be for information or enquiries (64%). Other reasons included e-mailing abroad (60%), and to reduce costs in general (58%).

Most consumers aware of inability to move and port fixed numbers and less than 1% likely to do so in the next 3 years

2.12 4 in 10 (41%) consumers currently using a cable operator for their fixed line telephone service are aware that they are currently unlikely to be able to retain their fixed line numbers if they were to move home. The majority of these (59%) were interested in being able to keep their number if they were to move.

2.13 6% of residential consumers currently using a cable operator for their fixed line telephone service with a BT ported number say they are likely to move home in the next 3 years and revert to BT within this time – therefore, the inability to port would be an issue for them. This equates to less than 1% of all UK adult consumers. Similarly 5% of businesses using cable with BT numbers think that it is likely that they will move premises in the next three years and revert to BT within this time, which also equates to less than 1% of SMEs.

2.14 On average these residential consumers using cable with a BT originated number estimate they would pay an average of £16 to keep their telephone number . Generally the amount consumers are prepared to pay increases with income and fixed spend, however base sizes are very small for these groups so should be as indicative only. Of those customers not prepared to pay to switch back to BT, most (5 out of 6) said they would still switch back and would change their telephone number hence the charge only appears to be a barrier to switching for a very small minority.

Some consumers are aware of sources available to compare telecoms suppliers and a few are aware of the Oftel PASS scheme

2.15 Currently 14% of UK adults are aware of the comparable performance indicators produced by telecoms companies – compared to 11% last year. A similar proportion (15%) are aware of websites that compare the price of fixed line operators services. Awareness of the Oftel PASS scheme is slightly lower at 6%, however, this is unsurprising given its recent introduction.

There has been little change in awareness of the DQ number change

2.16 There has been no change in awareness of the introduction or withdrawal of the current DQ number change. Currently 9% are aware of the introduction of the new numbers and 6% of UK adults were aware the old numbers would be withdrawn.

 Main findings

Chapter 3

Penetration and use of fixed telecoms in UK homes

3.1 Fixed phone penetration amongst UK households currently stands at 92%, hence the previous fall in fixed phone penetration experienced in August 2002 has been sustained. The fall was caused primarily by younger and lower income groups reverting from fixed ownership to mobile only usage - these groups have a greater propensity to debt and / or disconnection issues, hence affecting fixed penetration. The proportion of homes without telephony remains at 1% while the slight rise in use of mobiles only experienced last quarter has been sustained.

Figure 3a: Penetration of fixed and mobile telephony in UK homes
Base: UK homes, Nov 2002 (Base: 2312, less than 1% ‘don’t knows’ have been excluded)

* Sample was changed in May (see annex 1)

Note – rounding of data results in occasional months showing totals of more or less than 100%

3.2 The proportion of different groups of consumers without a fixed phone can be seen in figure 3b. The main groups mobile only ownership is most prevalent are the 15-34 age group, students, the unemployed and those living in rented accommodation.

Figure 3b: % UK consumers without a fixed line phone
Base: UK residential consumers aged 15+, Nov 2002 (Base: 2312)

Average spend on fixed telecoms services

3.3 Consumers spend on average £79 per quarter on their home fixed phone services - there has been little change in this figure in recent quarters. The average is inflated however, by the small proportion of customers spending over £150 per quarter.

3.4 Average quarterly spend on fixed telecoms amongst different consumer groups is shown in figure 3c, and is related to the obvious characteristics including income, household size, and use of additional services such as Internet. There has been little change in expenditure amongst any of the groups since last quarter.

Figure 3c: Average quarterly fixed telecoms spend, including rental, calls, metered Internet usage and VAT
Base: UK residential fixed phone customers aged 15+, Nov 2002 (Base: 2136, ‘don’t knows’ have been excluded)

Chapter 4

Consumers’ use of fixed telecoms operators

4.1 Supplier usage has remained broadly unchanged over the last couple of years, as shown in figure 4a. The only small variation tends to be in use of ‘other’ suppliers, mostly indirect access operators, which some customers use on an infrequent basis eg when they need to make international calls etc, rather than for all their calls. British Gas (including Onetel) was the most commonly mentioned alternative supplier (used by 1% of fixed homes), others included Kingston, Powergen, and Euphony. Use of indirect access operators and those offering carrier pre selection is discussed in more detail in chapter 5.

4.2 In total, around 8 in 10 fixed phone customers use BT for access and some, if not all, of their calls. The remaining 19% use cable - broadly consistent with market shares shown in Oftel’s Market Information based on the number of lines.

Figure 4a: Residential supplier usage
Base: UK residential fixed phone customers aged 15+, Nov 2002 (Base: 2136, 1% don’t knows have been excluded)

Awareness of alternatives

4.3 7 out of 10 (69%) of consumers are aware of a choice of supplier within their area, other than the one they currently use. Around 9 out of 10 (91%) cable customers are aware of a choice of supplier compared to 6 in 10 (61%) BT customers, as shown in figure 4b below.

Figure 4b: Awareness of alternative supplier available in geographic area
Base: UK homes, Nov 2002

% all respondents aware of choice of supplier (including those with no fixed line phone) (Base: 2312)	69%
% cable customers aware of choice of supplier (includes awareness of IA and CPS) (Base: 591)	91%
% BT customers aware of choice of supplier (includes awareness of IA and CPS) (Base: 1905)	61%
% all respondents aware of IA as choice in area (Base: 2312)	31%
% all respondents aware of CPS as choice in area (Base: 2312)	12%

4.4 Overall awareness of BT stands at 97%, amongst all consumers including those without a fixed line phone. Cable is available to around 51% of UK homes. Awareness of cable as a fixed line supplier is unsurprisingly significantly lower than awareness of BT and currently stands at 54% amongst all consumers and 45% amongst non-cable customers, broadly similar to 12 months ago (50% amongst all consumers). This figure rises to 68% amongst non-cable customers living in a cabled area.

4.5 Around a third (31%) of all consumers are aware that indirect access operators are available to them in their area – awareness has remained fairly unchanged over the last 2 years.

4.6 (See note 4) Carrier pre-selection suppliers are similar to IA operators in that they use the line already in your home but instead of dialling a code or using additional equipment to use their services you arrange in advance which types of calls you wish to use them for. 12% of all respondents were aware that carrier pre-selection suppliers are available in their area. Use and general awareness of these types of operator is discussed in more detail in chapter 5 and indicates that general awareness of both operators is significantly higher than awareness of them as alternative within a specific area.

Switching behaviour

4.7 Around a quarter (23%) of consumers with fixed line phones claim to have switched supplier – 4% in the last 12 months and 19% longer ago, broadly similar to August 2002.

4.8 Similarly to August 2002 the actual proportion of fixed line customers ever having switched increases to 38% when including IA or CPS users who did not consider use of IA/CPS to be a switch. This brings current switching in the fixed telecoms market broadly in line with switching in the energy markets – both of which currently stand at 40%.

4.9 The majority (78%) of customers who have ever switched fixed line supplier said they did not experience any problems with the process. 4% mentioned errors with their initial bill/direct debit set up and a similar proportion (3%) mentioned an administration error or problems changing details.

Satisfaction with fixed telecoms

4.10 Overall satisfaction with fixed telecoms services remains stable and stands at 96%, slightly but significantly higher than both the mobile market (93%) and the Internet market (90%). Satisfaction with the reliability of Internet service (97%) and value for money (81%) also remain stable as shown in figure 4c.

Figure 4c: Satisfaction with home fixed phone service
Base: UK residential fixed phone customers aged 15+, Nov 2002 (Base: 2136, don’t knows have been excluded)

4.11 Cable customers remain more satisfied with value for money at 84%, compared with 80% of BT customers, despite spending only marginally less than BT customers.

Notes

4. NB Please refer to annex for full details of question wording as these terms were not used when questioning consumers

Chapter 5

Awareness and use of indirect access and carrier pre-selection

5.1 Two thirds (64%) of UK adults with a fixed line telephone are aware of IA operators and 16% claim to use them. Whilst this figure is significantly higher than reported in Oftel’s quarterly research conducted in May 2002 (49%), this is likely to have been caused by a slightly different sample and alternate question phrasing rather than a real rise in awareness.

5.2 Findings from the main survey (chapter 4) indicate that a third (31%) of fixed line customers are aware that IA is available to them in their area. This suggests that there are significant proportion aware of this type of supplier but do not necessarily know whether it is available in their area.

5.3 BT customers remain significantly more likely to be aware of IA operators (68%) than those using cable (52%). However, awareness of IA as an alternative to consumers within their geographic area did not vary according to their current fixed supplier.

5.4 Another alternative to BT, cable and IA is carrier pre-selection (CPS). Similarly to IA these suppliers use the line already in your home but instead of dialling a code or using additional equipment to use their services you arrange in advance which types of calls you wish to use them for. Awareness and usage of both IA and CPS are shown in figures 5a and 5b below.

Figure 5a: Awareness and use of IA
Base: Those with fixed line, Oct 2002 (Base: 1001) Base: Those with fixed line, Oct 2002 (Base: 1001)

Figure 5b: Awareness and use of CPS
Base: Those with fixed line, Oct 2002 (Base: 1001) Base: Those with fixed line, Oct 2002 (Base: 1001)

5.5 Awareness and usage of CPS is perhaps unsurprisingly significantly lower than for IA. A third (32%) of fixed line customers are aware and 3% of these use CPS services, compared to two-thirds (64%) aware of IA and 16% of these currently using. This difference in awareness is likely to be due to the relatively recent introduction of CPS services 2000/2001 compared to IA services (1986).

5.6 Similarly to above, the main survey indicates that awareness of CPS as an alternative supplier in their area is lower than overall awareness (12%) – with likely similar explanations to that for IA stated above.

5.7 In total 69% of fixed line customers are aware of either CPS or IA operators. Whilst not exclusively the same groups, the demographics of those aware of CPS are broadly similar to those aware of IA - middle aged, higher social grades, BT customers and households with both a mobile and fixed line, as shown in figure 5c below. Similarly there are no differences between the types of customers using either service, also shown below.

Figure 5c: Awareness and use of IA and CPS
Base: All fixed line customers, Oct 2002 (Base: 1001)

5.8 Similar reasons were given by consumers for using either IA or CPS, the main one being for cheaper calls, as shown in figure 5d below. Various other reasons were stated including employers paying for the service, or other work-related issues. International calls were only mentioned by IA users as their reason for using this type of supplier. 

Figure 5d: Reasons for using IA or CPS
Base: Those currently using IA or CPS, Oct 2002

* Small base, apply caution and treat results as indicative only

5.9 Satisfaction with current supplier and service is the most common reason for not using either IA or CPS, as shown below.

Figure 5e: Reasons for not using IA/CPS
Base: Those aware but not currently using, Oct 2002

5.10 CPS customers are more likely than average and than IA customers to use their additional supplier for all calls. The most popular individual types of calls customers divert via their additional supplier are international, national and local calls as shown in figure 5f.

Figure 5f: Types of calls customers use additional supplier for
Base: Customers using indirect access, (Base: 165) or CPS (Base: *31), Oct 2002 ICM Research

* Small base size, apply caution and treat results as indicative only

5.11 The majority of consumers using IA or CPS claim not to have experienced any problems when switching (74% IA and 81% CPS), and a further 6% of each did not know or could not remember. CPS users appear to experience fewer problems than IA users. It appears that perhaps by removing the need for additional equipment or an access code, CPS has reduced problems with the switching process evident amongst IA customers.

Figure 5g: Problems encountered when switching to additional supplier
Base: Users of IA or CPS, Oct 2002

* Small base size, apply caution and treat results as indicative only

Chapter 6

Use of e-mail instead of fixed voice calls

6.1 Three quarters of adults with home Internet access claim to send e-mails instead of making calls from their fixed line at home, just over a quarter (27%) frequently do so as shown in figure 6a below. This equates to around a third (35%) of all adults sending e-mails instead of making voice calls. This is consistent with recent market information, which suggests falling local call volumes however, this may also be a reflection of use of mobiles over fixed calls.

Figure 6a: Frequency use e-mail as substitute for fixed voice calls
Base: All with home Internet, Oct 2002 (Base: 469)

6.2 The most frequent senders of e-mails over fixed voice calls are men, older consumers (55+) and higher social grades – AB’s.

6.3 Consumers were asked about the various circumstances when they send e-mails rather than making voice calls, as shown in figure 6b. The most popular was to make an enquiry or request information – mentioned by almost two thirds of those who substitute fixed voice calls with e-mail. Half claim to send e-mails abroad for cost reasons and 42% send e-mails abroad due to time differences - this equates to 60% who send e-mails abroad rather than making a call from their home fixed line.

Figure 6b: Reasons for sending e-mails over voice calls from fixed line at home
Base: Internet homes ever e-mail rather than use fixed line at home, Oct 2002 (Base: 347)

Use of text messages instead of voice calls

6.4 41% of mobile customers claim to send text messages instead of making calls from their fixed line phone at home at varying levels of frequency - 17% frequently, as shown in figure 6c. In total 16% of mobile customers claim to frequently send texts rather than make both fixed and mobile voice calls.

Figure 6c: Frequency use text messages as substitute for fixed voice calls
Base: Mobile customers, Oct 2002 (Base: 751)

6.5 Generally women, younger consumers, C1C2 social grades and homes with children are the most frequent senders of text rather than voice calls. 

When do texts take preference to voice calls?

6.6 Mobile customers claim to send text messages rather than voice calls largely for convenience and cost reasons, as shown in figure 6d below, responses are not mutually exclusive hence total more than 100%. This is consistent with previous Oftel research.

6.7 Oftel’s market information indicates an increase in mobile minutes and a corresponding fall in the proportion of fixed voice calls.

Figure 6d: Reasons for sending text instead of voice calls
Base: Mobile customers ever use text rather than voice calls from fixed and/or mobile, Oct 2002 (Base: 507)

6.8 Half of mobile customers send text messages rather than making voice calls from their home fixed line when it is either being used by someone else (45%), or tied to the Internet (33%). This is consistent with previous research which also indicated mobile customers with Internet access at home tend to spend more on their monthly bill as their Internet usage increases.

Chapter 7

Use and awareness of 0870 numbers

7.1 Calls to 0870 numbers are charged at national rate. Slightly more than a quarter (28%) of UK adults were aware of this. An equal proportion did not know how much a call to this code would cost, while slightly less than this (23%) thought it would be expensive. The remaining 20% thought a call to an 0870 number would be charged at local rate/cheap (15%) or was free (5%), as shown in figure 7a.

Figure 7a: Awareness of the cost to call 0870 numbers from fixed line phone
Base: UK adults, Feb 2002 (Base: 1009)

7.2 Awareness of the cost of calling 0870 numbers was highest amongst younger consumers. 44% of 16-24 year olds were aware that 0870 numbers are charged at national rate compared to 16% of those aged 65+. Around half (51%) of consumers aged 65+ did not know how much it would cost and were slightly more likely to think that 0870 calls were charged at local rate/cheap (14%) than expensive to call (10%).

7.3 Awareness did not vary greatly according to social grade. On average 29% ABC1 and C2 were aware that these calls are national rate compared to 24% of DE social grades.

7.4 Consumers with mobile phones were more aware of the cost of calling 0870 numbers than those without. Over 3 in 10 (31%) consumers with a mobile phone were aware that calling 0870 numbers from a fixed line telephone would be the same as calling a national rate number, compared to 19% of non-mobile owners. Over twice as many non-mobile owners did not know how much a call to 0870 would cost compared to those with mobiles (45% and 22% respectively). This is perhaps a reflection of the profile of mobile owners, younger, higher social grades.

7.5 Previous research into awareness of the cost of calling this code, conducted in November ’01, referred to 087 numbers. When comparing the results of these two surveys awareness appears to have increased significantly. 18% were aware in November that 087 numbers were charged at national rate compared to 28% during February. Awareness rose across all geographic and demographic groups.

7.6 However, this may be partly due to the alternate question phrasing. Consumers were asked about 087 numbers in November and 0870 during February 2001. Perhaps the full code 0870 is more recognisable to consumers as a national rate number, which indicates higher awareness of the actual code as opposed to the cost. Therefore we cannot make any assumptions on whether the level of awareness of calling these numbers from a fixed line has actually improved.

Comparison with other number awareness

Awareness of 090 numbers

7.7 Awareness of the actual rate that 0870 is charged at, is equal to that reported for 090 numbers - 28%. Younger consumers are amongst those most aware of costs to both these codes.

Awareness of 070 numbers

7.8 An 070 number is a personal numbering service, which enable a person’s calls to be routed to a convenient number. Consumers appear to be more aware of the cost to call 0870 numbers than 070 numbers. The proportion of customers who did not know how much it would cost to call 0870 numbers (28%) is less than half that reported for 070 numbers (62%) in May ‘01. This is not surprising as research conducted in May saw only 2% of consumers claiming to use an 070 number and 18% aware of them in general.

Awareness of mobile numbers

7.9 During February 2001, less than half (46%) of consumers claimed to know whether or not they were calling a mobile from their fixed phone by the code they dialled. A fifth said they know roughly how much it cost to call a mobile number from their fixed phone.

Chapter 8

Awareness of forthcoming changes to directory enquiries services

8.1 At the end of 2001, Oftel announced plans to replace the existing national (192) and international (153) directory enquiries (DQ) services with a range of new numbers. Currently consumers can only access the DQ service provided by their network operator. The new arrangements will mean that consumers will have a choice of DQ service provider no matter what network they use.

8.2 These changes are expected to lead to the introduction of a range of new services, such as call completion facilities where the operator can connect people directly to the number they have requested, or services in a range of languages for people whose first language is not English and visitors from overseas. The presence of new firms in the market should promote competition in quality of service and on price, encouraging better customer service and lower prices.

8.3 In late 2002, new numbers in the range 118XXX were introduced for directory enquiries services. These are available in conjunction with the exiting 192 and 153 DQ services until August 2003, when 192 and 153 will cease to exist.

8.4 Oftel conducted research amongst residential consumers prior to deciding these changes, the majority of whom claimed they would not be concerned about the replacement of the current 192 DQ service with a range of new services.

8.5 These changes will affect at least the 7 in 10 UK adults who claim to ever call directory enquiries services from a fixed or mobile phone. And potentially cheaper prices and a wider range of services may encourage the remainder to use DQ services.

8.6 By the end of November 2002, prior to the introduction of new DQ numbers in December, 9% of UK adults were aware of the forthcoming introduction of new DQ numbers, whilst slightly lower than reported in August awareness remains similar to May 2002 (8%). The vast majority however remain unaware of what the new numbers will be (only 1% of all adults claimed to be aware, and around half of these correctly mentioned the 118xxx format). It should be noted that no advertising of the new numbers was permitted prior to their introduction in December, so that consumers did not suffer problems in dialling these numbers whilst they were being tested.

8.7 6% of UK adults were aware that the current 192 and 153 DQ numbers would be withdrawn from service again similar awareness as that reported in May and August , and the majority of these did not know when this would happen. These were largely, although not exclusively the same group of people as those aware of the new number introduction, as shown in figure 8a. 

Figure 8a: Awareness of the forthcoming changes to DQ
Base: UK adults aged 15+, Nov 2002 (Base: 2312)

Chapter 9

Comparable performance indicators and Oftel PASS

9.1 Comparable performance indicators are quality of service information produced by telecoms companies that enable consumers to compare the performance of different companies on various aspects of service. Currently 14% of residential consumers are aware of these up from 11% last year. Awareness was highest amongst AB social grades (23%) and high income groups (20%) and to a lesser extent middle aged consumers (17%), larger households (18%) and those with home Internet access (18%).

9.2 A similar proportion (15%) are aware of any website which compares the price of companies that offer fixed line services. Those aware were largely, although not exclusively, the same groups as above.

9.3 Oftel has recently introduced a seal of approval called the Oftel PASS, for websites which compare the prices of different suppliers and provide impartial and accurate information. Current awareness amongst residential consumers stands at 6% with little difference in awareness levels across demographic groups. This lower level of awareness in comparison to the performance indicators is perhaps unsurprising given its relatively recent introduction.

Chapter 10

Fixed number portability and mobility

Awareness of fixed number mobility and importance of retaining numbers

10.1 The following section was asked only to UK consumers using a cable company with a telephone number that originated from BT ie they switched to a cable operator and ported their numbers from BT.

10.2 Currently consumers are unable to move home to a location within their existing cable company area but outside their original BT exchange and retain their fixed line numbers. The historical reason for this is that should they ever want to use the portability process to return to BT while at their new address it could be technically difficult and costly. The following section explores the extent to which this is an issue for consumers and what price they would be prepared to pay to retain their telephone number if the process was changed.

10.3 The inability for consumers to retain their numbers would only apply if they were to move home, outside their current BT exchange. Due to the complexity of the issue we were unable to explain to consumers in detail the location they would need to move to before this became an issue hence the following results are subject to limitations, as the survey simplifies the issue by defining those likely to be affected as people who are likely to move and switch back to BT within 3 years.

10.4 Around 4 in 10 (41%) of those currently using a cable company for their fixed telephone supplier and using their original BT number were aware that if they moved home they would be unlikely to be allowed to retain their numbers.

10.5 As shown in figure 10a, the majority of those using cable with original BT numbers, said they were interested in being able to keep them if they were to move home - 59%. Most of these expressed that they were very interested.

Figure 10a: Interest in keeping phone number when moving home
Base: UK adults using a cable supplier for their fixed line telephone service with a BT number, Nov/Dec2002 (Base: 154)

10.6 Interest in retaining telephone number when moving was significantly higher amongst those likely to move home in the next three years at 72% compared with 54% of those not likely to move. Interest also appeared to be greater amongst younger consumers (who are also more likely to move) at 69% of 16-34 year olds, compared with 53% of those aged 55+, however, base sizes for these individual groups are small so results should be treated as indicative only.

Overall impact on consumers

10.7 Figure 10b shows consumers currently using cable with BT originated numbers, their likelihood to move home in the next three years and, also their likelihood to return to BT within that time.

Figure 10b: Proportion of consumers likely to move premises and return to BT
Base: UK adults using a cable supplier for their fixed line telephone service with a BT number, Nov/Dec2002 (Base: 154)

 10.8 6% said they were likely to move in the next three years and also revert back to BT within this time. In addition 3% of consumers who were likely to move home (or unsure) were likely to switch back to BT or unsure if they would, therefore it is possible that they may also be affected in the future.

10.9 About six in ten of those who were likely to move and likely to switch back to BT indicated that they would be willing to pay to retain their existing telephone number if they were to switch back to BT. This figure appears to be slightly higher (about 7 in 10) amongst those who were interested in keeping their telephone number if they were to move home.

10.10 In total just under 1 in 5 (19%) currently using a cable company for their fixed telephone supplier and using their original BT number thought that they were likely to revert to BT within three years time.

10.11 Of those cable customers who were likely to return to BT within the next three years about a quarter (23%) said that they would not be prepared to pay anything to retain their telephone number. Of these, most (5 out of 6) indicated that they would still switch back and would change their telephone number. A charge would appear to be a barrier to switching for only a very small minority, who indicated that they would not switch back to BT if there was a charge, but would stay with their existing telephone supplier to retain their number.

10.12 Of those consumers who said were likely to return to BT in the next 3 years and would be prepared to pay to retain their existing telephone number if they returned to BT the average price prepared to pay was £16. The amount prepared to pay, unsurprisingly appears to increase with fixed spend and annual income. Those who are most likely to be affected by the charge (likely to move and return to BT within the next three years) were willing to pay slightly less than average (£12). Again base sizes are very small within individual groups so these figures cannot be seen as anything more than a rough guide.

 Appendix 1

Details of changes to Oftel’s quarterly residential survey, May 2002

In April 2002, Oftel changed the market research agency we use to conduct the fieldwork for our UK quarterly residential surveys. At the same time we took the opportunity to refine the sample and methodology used to conduct these surveys.

The changes are as follows:

Methodology

Our surveys were previously carried on a national in home, face-to-face, CAPI omnibus survey. They are now conducted as a stand-alone Oftel survey (ie not on a shared omnibus), conducted on paper rather than CAPI, and remain in home and face-to-face.

The advantages of this new methodology include:

• giving us more flexibility in terms of who and where we interview (see below for further details).
• shorter interview for respondents (reducing potential respondent fatigue) as it is now a stand-alone Oftel survey, and is not combined with a variety of other topics on an omnibus survey
• enabling respondents to focus on telecoms issues specifically (and hence provide potentially better quality answers) rather than thinking about the variety of diverse topics that can appear on an omnibus

Sample

The sample remains a representative sample of UK adults aged 15+, representative in terms of age, gender, social grade, working status, and region.

The changes include:

• Greater representation of rural and deprived areas (due to the limitations of an omnibus in reaching some of these areas).
• Controls are now set on the proportion of interviews conducted in cabled and non-cabled areas to ensure they are included in their natural proportions. Since the omnibus is not telecoms-specific, cabled status was left to fall out naturally, and no quotas were set on the number of interviews in cabled vs non-cabled areas.

These refinements enable us to control for or investigate in greater detail issues that are particularly likely to influence telecoms usage. The implications of these changes are that some of the results will be affected. To understand what changes are due to these sample and methodology changes, and what changes are real changes in the market, the key tracking questions were repeated on the omnibus in May, in parallel to the first wave of new survey as a control sample.

The main measures affected are take-up of mobile and Internet. These are lower amongst the new sample as would be expected given the higher proportion of deprived areas now included in the sample – respondents who traditionally are less likely to have these technologies. Results from both May surveys were discussed in the report (and continue be shown in this report) to distinguish changes resulting from the sample and real changes in consumer behaviour. This should enable the reader to place the new figures (from which subsequent quarters’ trend data continue) in the context of the previous trend data.

      Appendix 2

Q11 August 2002 Residential questionnaire: fixed telecoms questions

Q1. Do you have a fixed line phone in your home?

Yes
No
Don’t know/refused

Q2. Which of these types of companies on this card do you/your household use for your home fixed line telephone services? If you use more than one fixed line supplier, please let me know what type of company each supplier is. Please do not count mobile phone companies.

BT
Cable
Someone else not BT or cable
Don’t know

Q3. Which other type of telephone companies do you think are available to you in your area that offer fixed line services?

BT
Cable

Suppliers that - you enter a short code before you dial the number you wish to call or you have a box attached to your phone which automatically does this for you

Suppliers that - you tell them in advance which calls you want to use them for and these calls will automatically go through these type of suppliers

Q4. How satisfied are you with the following?

Your fixed line telephone service overall
Reliability of your fixed line telephone service
Overall value for money from your fixed line telephone service

Q5. Approximately how much would you estimate your TOTAL household spend per quarter on telecoms services is for all telecoms suppliers used (including line rental, any other charges and VAT) but EXCLUDING mobile phone costs?

Up to £30
£31-£50
£51-£70
£71-£100
£101- £150
£151-£200
£201-£300
More than £300
Don’t know/no answer

Q6. Which of the following sources of information about telephone companies have you seen or heard of…

Comparable performance indicators - quality of service information produced by telephone companies that enables consumers to compare the performance of different companies on a variety of aspects of their service?

Any websites, which compare the price of companies that offer fixed line services in your home?

Q7. Oftel has recently introduced a seal of approval, called the Oftel PASS, for websites which compare the prices of different suppliers and provide impartial and accurate information. Before now were you aware of this?

Yes
No
Don’t know/not sure

Q8. New numbers for directory enquiry services are going to be introduced soon. Before now, were you aware of this?

Yes
No
Don’t know

Q9. Do you know what the new numbers will be for directory enquiries?

Yes – 118 XXX
Yes – other number
No
Don’t know

Q10. Once these new numbers are introduced, the national 192 and international 153 directory enquiries numbers will be withdrawn from service. Before now, were you aware of this?

Yes
No
Don’t know 

Q11. Do you know when these numbers (192/153) will be withdrawn from service?

Winter / December 2002
Summer / August 2003
This Year
Next Year
In 2 years time
Other
Don’t know

Ad hoc questionnaires

0870 Numbers

Q. How much do you think it costs to call a number starting with 0870 from your fixed line phone?

Free
Local rate/cheap
National call rate
Expensive
Don’t know/no answer

Q. Using this card, how much do you think it costs to call an 070 number?

Free
Local rate/cheap
National call rate
Expensive
Don’t know/no answer

Q. Which, if any, of these statements apply to the calls you make from your fixed phone at home to mobile phones?

I usually know whether or not it is a mobile number I am calling
I know roughly how much it costs to phone a mobile from my fixed phone
It doesn’t really matter to me how much it costs to call a mobile number
I am less likely to call a mobile number because of the call cost
If I know it’s a mobile number I’m calling, I tend to keep the call shorter than if I was calling a fixed phone
None of these
Don’t know 

Fixed telephony retail market analysis

Q. Which of these companies do you/your household use for your home fixed line telephone services? If you use more than one fixed line supplier, please include this, but do not count mobile phone companies. READ OUT MULTICODE

BT
Cable – NTL
Cable - Telewest
Someone else (write in)
DK

Q. In addition to BT and cable companies you can get telephone services from other suppliers by using the line already in your home. To use one type of supplier you usually enter a short code before you dial the number you wish to call. Alternatively, you may have a box attached to your phone which does this for you. Before now were you aware of this type of telephone supplier?

Yes
No
Don’t know

Q. And do you use services from any of these type of suppliers?

Yes
No
Don’t know

Q. Why do you not use any of these suppliers?

Not interested/don’t want to use this service/satisfied with current service
Complicated billing
Having to pay 2 bills
Don’t know enough about it/Lack of information about service
Poor quality service
Not worth the savings
Poor value for money
Don’t make enough international calls
Don’t make enough calls
Don’t trust companies offering this service
Other (PLEASE SPECIFY)
Don’t know/no answer

Q. There is also another type of supplier that also uses the line already in your home. Rather than entering a short code or having a box attached to your phone you simply tell the supplier in advance which types of calls you want to use them for and these calls will automatically go through this supplier. Before now were you aware of this type of telephone supplier?

Yes
No
DK

Q. And do you use services from any of these type of companies?

Yes
No
DK

Q. Why did you decide to use [a supplier where you dial a short code or have a box attached to the phone which does this for you – if code 1 at Q3] or [this type of supplier – if code 1 at Q6]?

To get cheaper calls
Unhappy with quality of current supplier
Unhappy with costs from current supplier
Other (specify)
Don’t know

Q. Which types of calls do use your additional supplier for?

All calls
International calls
National calls
Local calls
Mobile calls
Internet calls/usage
Business/work related calls
Other
DK

Q. What problems, if any, did you experience when switching to this supplier?

Administration errors / changing details
Errors in initial bill / direct debit
Dialler box didn’t work
Difficulties installing dialler box
Remembering to use short code / access code
Difficulties getting hold of the right person to set up the new account
Didn’t contact me when they said they would
Errors arranging the right types of calls I’d arranged to use them for
Other (specify)
None: Didn’t experience any difficulties / problems

Q. Why do you not use this type of supplier?

Already use an second supplier
Not interested/don’t want to use this service/satisfied with current service
Complicated billing
Having to pay 2 bills
Don’t know enough about it/Lack of information about service
Poor quality service
Not worth the savings
Poor value for money
Don’t make enough international calls
Don’t make enough calls
Don’t trust companies offering this service
Never heard of companies offering this service
Other (PLEASE SPECIFY)
Don’t know/no answer

Q. Apart from when you have moved house, have you ever changed the company which provides your home fixed-line telephone service?

Was this in the last twelve months or more than a year ago?
Yes – in the last 12 months
Yes – more than a year ago
No – never changed supplier
Don’t know/no answer

Q. What problems, if any, did you experience when switching to this supplier?

Administration errors / changing details
Errors in initial bill / direct debit
Difficulties getting hold of the right person to set up the new account
Didn’t contact me when they said they would
Other (specify)
None: Didn’t experience any difficulties / problems 

Number portability and mobility questionnaire

Q. Which of the following do you use for your main fixed line telephone service?

BT
NTL
Telewest
Cable & Wireless
Any other supplier – specify
Don’t know

Q. Did you switch from BT to (cable company currently used)?

When was this?

Yes – in the last 12 months
Yes – 1-6 years ago
Yes – more than six years ago
No – never used BT
Don’t know

Q. When you changed supplier, did you keep the same phone number you had with BT?

I would now like you to think specifically about the phone number that you kept when you switched supplier. Just to clarify, this is the number that you took with you from BT when you switched to (cable company currently used).

The reason I am asking you about this particular phone number is because at the moment if you were to move home it is unlikely that you would be able to keep it.

Q. Firstly were you aware of this?

Q. And could you tell me how interested you would be in keeping this phone number if you were to move home?

Very interested
Fairly Interested
Not very interested
Not at all interested

Q. How likely are you to return to BT in the next 3 years?

Very likely
Fairly likely
Not very likely
Not at all likely

Still thinking about the telephone number that you took with you from BT. The reason you are currently not allowed to take them with you when you move is due to technical difficulties which prevent you from keeping this number if you ever switched back to BT.

Q. Assuming these rules changed and you were allowed to keep your phone number. How much would you be prepared to pay to keep your existing phone number if you switched back to BT?

Q. You mentioned you would not be prepared to pay anything to do this which of the following would you then want to do? (Rotate answers)

Switch back to BT and change you telephone number
Not switch back to BT but keep your number and with your current supplier

Q. How likely are you to move home in the next three years?

Very likely
Fairly likely
Not very likely
Not at all likely

Q. Approximately how much would you estimate your TOTAL household spend per quarter on telecoms services is for all telecoms supplier used (including line rental, any other charges and VAT) but excluding mobile phone costs?

Up to £30
£31-£50
£52-£70
£71-£100
£101-£150
£151-£200
£201-£300
More than £300