Consumers' use of fixed and mobile telephony, Q13 May 2003, July 2003



	Consumers' use of fixed and mobile telephony, Q13 May 2003 - 31 July 2003



			Contents Chapter 1 – Introduction Chapter 2 – Summary Main findings Chapter 3 – Fixed and mobile phone usage Chapter 4 – In Contact and Universal Service Chapter 5 – Billing accuracy Chapter 6 – Automated answerphones Chapter 7 – Indirect Access operators Chapter 8 – Payphones Annex A – Details of changes to quarterly survey sample Annex B – Q13 May 2003 residential mobile questionnaire Annex C – Q13 May 2003 residential fixed questionnaire Chapter 1 – Introduction 1.1 This report provides an overview of the key findings of consumer behaviour in the fixed and mobile markets, taken from the thirteenth wave of Oftel’s quarterly residential consumer survey, conducted in May 2003. 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 demographic and social characteristics. Elements of the methodology have been changed this quarter. This has not impacted on results. See Annex A for more details. 1.3 The survey was conducted for Oftel by MORI amongst 2116 UK adults (see note one below) during May 2003, of whom 91% had a fixed line phone and 75% had a mobile. The report has been prepared by Oftel (see note two below), based on the results provided by MORI. 1.4 This report covers: use of fixed and mobile phones; awareness of In Contact scheme/reasons don’t have telephony; Oftel’s metering and billing certification; consumer response to automated answerphones; awareness and use of Indirect Access including prepaid cards; and use of payphones. 1.5 A copy of the questions used is attached in Annex B and C. 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 aged 15+, 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. Because the survey was 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 2116 consumers is about 1-2%. 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 MORI or any decisions taken by any person in reliance on the report. Chapter 2 – Summary Headline figures 91% of UK homes own a fixed line phone, 1% do not have a fixed or mobile phone at home 75% of UK adults own/use a mobile phone, 85% of households have at least one mobile 21% use their mobile as their main method of telephony, 8% are mobile only homes *Little change in use of fixed or mobile telephony – slight rise in household ownership of mobiles* 2.1 Little change has been seen this quarter in the proportion of UK adults using fixed and mobile telephony. However, while the proportion of adults with a mobile has remained stable household ownership has risen significantly. This suggests children (under 15 year olds) who are not interviewed in our survey, may have driven the rise in mobile ownership amongst households. Small fluctuations in levels of satisfaction with mobile services 2.2 Amongst mobile customers, value for money experienced a significant fall during November 2002 to 83% which has been confirmed. However, geographic coverage appears to have become significantly more satisfactory than last quarter (up from 84% to 88%) driven by consumers in rural areas and T-Mobile customers, which may be a reflection of the increase in the number of T-Mobile cell sites between late 2001 and May 2003. *3% of households are without a fixed line due to cost barriers* 2.3 Currently 1% of homes are without any method of telephony, most of these use payphones instead. 60% of homes without telephony said this was due to cost barriers. A further 8% of homes claim to use a mobile rather than a fixed line, the main reason for this was to control costs, or their inability to afford a fixed line. 1 in 5 of BT In Contact’s target audience are aware of the scheme 2.4 Around 1 in 5 UK adults with either no fixed line (of which there are 9%) or currently using an incoming calls only phone (currently used by less than 1% of UK adults), claimed to be aware of BT’s In Contact service. *Half of frequent payphone users would not be prepared to walk 10 minutes if a payphone had been removed* 2.5 1 in 10 UK adults use payphones on a regular basis. If BT were to remove all payphones from some sites around the UK, half of regular users would not be prepared to walk for 10 minutes to find another payphone to make their call. 1 in 5 fixed line customers who had experienced an automated message when their call could not be connected reacted by trying again immediately using the redial button 2.6 In total 17% of fixed phone customers reacted to these messages by re-dialling immediately, 10% would use the re-dial button, and the remainder would manually enter the number. A quarter of fixed line customers said they would try again later. *Awareness of metering and billing certification at similar level to awareness of CPIs* 2.7 Current awareness of Oftel’s metering and billing certification stands at 12% of UK adults, broadly similar to CPIs (14%), and twice that of Oftel’s PASS scheme (6%). The metering and billing scheme approves the level of phone bill accuracy and billing complaint handling for specific suppliers. This was seen to be factor that 3 in 5 fixed line customers said they would at least take into consideration when comparing fixed suppliers. 2.8 The majority of customers that receive a regular telecoms bill think their bills are calculated at least fairly accurately (fixed – 82% and mobile – 85%). Groups most likely to feel their bills are inaccurate are low income groups, consumers in areas of high deprivation and large households. Current awareness of the scheme had no impact on consumers’ perceptions of billing accuracy. Chapter 3 – Fixed and mobile phone usage Penetration of fixed telecoms 3.1 Fixed phone penetration amongst UK households has remained stable since August 2002, standing at 91% as shown in figure 3a. The proportion of homes with a fixed line only has been falling in the last six months standing at 13% in May 2003, as mobile penetration among homes with a fixed phone has risen. Mobile penetration amongst UK adults and households is shown in figure 3b. Figure 3a: Penetration of fixed and mobile telephony in UK homes Base: UK homes, May 03 (Base: 2116, less than 1% ‘don’t knows’ have been excluded) * Sample was changed in May ’02 - results were broadly unaffected and control sample was conducted to establish whether any changes were due to sample or ’real’ changes in the market. Note – rounding of data results in occasional months showing totals of more or less than 100% Penetration of mobile telephony 3.2 Household penetration of mobile phones increased in February and has risen significantly again this quarter to 85% of homes. Given that penetration amongst UK adults remains stable at 75% (sustaining the rise reported in February), this suggests the rise in the proportion of households with mobiles may be due to an increase in mobile ownership amongst children (under 15) within previously non-mobile owning households. *Figure 3b: Mobile growth –% UK adults and households who have a mobile phone** Base: UK adults aged 15+, May 03 (Base: 2116) * 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. sample and methodology was changed in May ’02, figure using previous sample to indicate continuous trend. 3.3 Penetration remains highest amongst younger consumers, ABC1 social grades, higher income groups. As reported previously, consumers living in rural areas are as likely as those in urban areas to use a mobile phone, 76% and 75% respectively. The full breakdown of the profile of mobile customers is shown in figure 3b of the February ’02 report (see www.oftel.gov.uk/publications/research/2003/q12mobr0403.htm). Main method of telephony 3.4 Nearly three-quarters (73%) of UK adults consider a fixed line at home to be their main method of making and receiving calls. 1 in 5 (21%) use mobiles as their main method, 4% a fixed line at work and 2% public payphones, as shown in figure 3c. 3.5 Amongst those who have at least one mobile in their household, those aged 15-34 are more likely to consider a mobile phone to be their main method of making and receiving calls – 45% compared to 12% of those aged 35+. Men (25%) are also significantly more likely to consider a mobile as their main method of calling than women (18%), despite similar mobile penetration levels. 3.6 Public payphones are considered to be the main method of telephony by a higher than average proportion of DE social grades (5%) and those living in high deprivation areas (11%). Figure 3c: Main method of making and receiving calls** Base: UK residential consumers aged 15+, May ‘03, (Base: 2116) Consumers’ use of fixed telecoms suppliers 3.7 The following chart (figure 3d) shows use of fixed telecom suppliers. The proportion of fixed phone customers using BT this quarter is 79%. This is slightly lower than recent levels but consistent with the longer term trend which has remained consistent at about 4 in 5. In cabled areas use of BT drops to 65%. Figure 3d: Residential supplier usage Base: UK residential fixed phone customers aged 15+, May ‘03 (Base: 1939, 1% don’t knows have been excluded) Consumers’ use of mobile operators 3.8 Use of mobile operators remains largely unchanged. Figure 3e shows mobile market shares (in terms of numbers of subscribers using each of the four networks) from published sources of mobile market share information, compared to Oftel’s survey data. The results indicate that the survey remains broadly reflective of the current mobile market in terms of the proportion of customers using each network. It should be noted that industry figures include business subscribers. Figure 3e: % mobile customers using each network Base: UK mobile customers aged 15+, May 03 (Base: 1547, 2% ‘don’t know/other’ have been excluded) Industry data: Fintec Mobile Communications, May '03. Mobile packages used 3.9 Use of mobile packages has also remained largely unchanged. Pre pay remains most popular, used by 69% of mobile customers while 28% have a monthly contract. During Spring 2001 some operators withdrew all in one packages and consequently usage fell and continued to do so until around mid 2002 from which point usage has remained stable. Figure 3f: Profile of mobile package usage Base: UK mobile customers aged 15+, May 03 (Base: 1547, 1% ‘don’t know/other’ have been excluded) * Note that sample and methodology was changed in May 2002, see annex 1 in May report for full details. 3.10 There has been little change in the profile of mobile customers using monthly contact, pre pay or all in one packages. Pre-pay phones remain most popular amongst older mobile customers, lower income groups, and DE social grades, see figure 4b in February ’02 report for full breakdown (see www.oftel.gov.uk/publications/research/2003/q12mobr0403.htm). Satisfaction with telephony *Main method of telephony* 3.11 As discussed previously, three-quarters of residential consumers use their home fixed line as their main method of telephony. Overall satisfaction with this method stands at 96% – on a par with overall satisfaction in February 2002 (97%). 3.12 When comparing main methods of telephony, satisfaction is significantly higher among those who consider a fixed line at home (96%) to be their main method of making calls than those who use a mobile phone (92%) as their main method, as shown in figure 3g. This falls to 88% amongst those consumers using payphones as their main method of telephony, this figure is significantly higher than previously reported in (63% in February ’02). Figure 3g: Satisfaction with main method of making calls Base: UK residential consumers, May ’03 (Base: 2116, Fixed at home: 1578, Fixed at work: 82, Mobile phone: 412, Public payphone: 34, less than 1% don’t knows have been excluded) * Base size less than 100 so apply caution. NB Totals may not add up to 100% due to rounding *Mobile telephony* 3.13 Amongst all mobile customers, satisfaction with overall mobile phone service rose at the beginning of 2001 and has remained fairly stable since then – currently at 94%. Overall satisfaction with mobile service remains slightly, but significantly lower than satisfaction in the fixed telecoms market (97% in February). Satisfaction levels in both these markets remain higher than reported for the Internet market (92%). Figure 3h: % UK mobile customers satisfied with aspects of service Base: UK mobile customers aged 15+, May ‘03 (Base: 1547, ‘don’t knows’ have been excluded) Please note satisfaction with mobile telephony was not asked in February ‘03 * satisfaction with geographic coverage was not asked in August ‘02 3.14 The fall in satisfaction with overall value for money reported in November 2002 has been confirmed and stands at 83%, as shown in figure 3h. Recent changes in tariff structure by some operators have meant that prices may have risen for some infrequent pre-pay users may which have impacted on satisfaction with this aspect. 3.15 Satisfaction with geographic coverage of mobiles has risen significantly to 88%. Satisfaction has risen slightly amongst almost all groups of consumers. T-Mobile customers appear significantly more satisfied with their geographic coverage than in November ’02, and while the other networks also experienced slight rises in satisfaction these were not significant. This may reflect an increase in T-Mobile’s number of cell sites. 3.16 The most notable rise in satisfaction with geographic coverage was amongst mobile customers living in rural areas (rising from 70% in November ’02 to 83% in February ‘03). Satisfaction also rose significantly amongst consumers living in urban areas but to a lesser extent (86% to 88%). Chapter 4 – Universal service 4.1 BT’s universal service obligation aims to ensure that telecoms services which are used by the majority and are essential to full social and economic inclusion are available to everybody upon reasonable request at an affordable price. Homes without a fixed or mobile phone 4.2 During May ’02, 1% of UK households did not have a fixed line or mobile phone, this equates to 250,000 households. This has remained stable for the last couple of years following a drop, primarily due to a rise in use of pre-pay mobile phones. 4.3 The proportion of different groups of consumers without a fixed phone can be seen in figure 4b. Consumers most likely to be without any method of telephony were non-working, lower income groups, DE social grades, small households, and consumers living in areas of high deprivation. The majority of these consumers rely on payphones as their main method of telephony (92%), and spend around £4 per month on calls. This figure should be treated as an indicative finding only, as it is based on a small sample. 4.4 In total 64% of household without telephony mentioned a reason related to cost, (fixed line rental, regular bills, fixed line connection charges, mobile subscription, mobile calls costs, fixed handset/ equipment or mobile handset). However, for around 6 in 10 this was the only reason they did not have any method of telephony at home. This equates to about 150,000 households that were excluded from fixed and mobile telephony for ‘affordability’ reasons. Figure 4a: Reasons for not having a fixed or mobile phone in household Base: All without fixed line or mobile phone in household, May ‘03 (Base: 25)* Figure 4b: % UK consumers without a fixed line phone Base: UK residential consumers aged 15+, May '03 (Base: 2116) * The apparent fall in fixed phone penetration from last quarter amongst households in high deprivation areas is not statistically significant Preference for mobiles rather than fixed phones 4.5 8% of households had a mobile phone, but did not have a fixed line telephone. These were largely younger consumers, DE social grades, low income households and those living in areas of higher deprivation, as shown in figure 4b. 4.6 Reasons given for having a mobile but not a fixed phone are listed in figure 4c. The most common reason given was to control costs or keep them low. ‘Affordability’ reasons (can’t afford fixed line/ connection charge or don’t want to get into debt) were given by 3 in10. When less clear cut ‘affordability’ reasons (‘to control costs’ or ‘can’t get a fixed line/ disconnected in the past’) are added the figure rises to 63%. 4.7 Mobile only households display a significant attitudinal difference to the average mobile customer. A lower proportion (57%) feel that they are getting the best value deal for their needs, compared to 71% of all mobile customers. Figure 4c: Reasons for using a mobile phone but not a fixed line telephone Base: All with a mobile phone but without a fixed line in household, May ‘03 (Base: 151) Households facing cost barriers to getting telephony services 4.8 In summary, 3% of households do not have a fixed phone (in some cases neither fixed nor mobile phone at home) because they cannot afford to. Unsurprisingly, use of payphones is more prominent than average among these consumers. Just over 1 in 5 without a fixed line for ‘affordability’ reasons say they consider a public payphone to be their main method of making and receiving calls; two thirds of these spend less than £2 per month on payphones. The remainder largely use mobiles (around 7 out of 10), or their fixed line at work (1%). 4.9 There are various suppliers offering telecom services designed to assist consumers control costs and offer cheaper call charges, such as Indirect Access operators. These are available to use via pre-paid cards. These cards can be used in conjunction with either home fixed lines or payphones and offer cheaper call charges (largely for international calls). Amongst consumers without a fixed line telephone for affordability reasons, around 1 in 5 were aware of these suppliers – more details on use and awareness of this method of access is discussed in chapter 7. 3 of these 63 consumers claimed to use these suppliers, all spending between £16 and £30 per month. 4.10 BT’s In Contact scheme also aims to assist consumers control fixed telecom costs, by allowing consumers to buy call time on BT pre-paid cards. This call time can be used by entering a code before dialling from a BT fixed telephone. The scheme offers low cost line rental and pre-pay call charges of 10 pence per minute to consumers unable to get a fixed phone for financial reasons. 4.11 Just over 1 in 10 consumers facing cost barriers to getting a fixed line phone, claimed to be aware of BT’s In Contact scheme. If awareness of the scheme was higher more consumers may use the scheme. In total around 5% of households do not have a fixed line and say that this is to control costs or because they have been cut off in the past. Use and awareness of In Contact 4.12 In total, 2% of fixed line customers claim to use BT’s In Contact service broadly similar to figures reported in August ’01 and slightly higher than industry estimates – which suggest less than 1% currently use this service. A further 15% claim to be aware of this service, but do not use it. Awareness did not vary amongst those currently without a fixed line – however, it was higher than reported in November ’01 (13%). Those most aware of this scheme are over 55s (20%) and those in areas of higher deprivation (21%), as shown in figure 4d. Use is more prevalent among non-white ethnic groups (5%) than amongst white ethnic groups (1%). Figure 4d: Use and awareness of BT’s In Contact scheme Base: UK residential consumers aged 15+, May ‘03 (Base 2116) 4.13 1% of fixed line customers have an incoming calls only service ie. they can only make emergency outbound calls. These are primarily young (aged 15-34), lower income and from higher deprivation or urban areas. Of these 21 consumers 1 claims to use BT’s In Contact service and another 7 are aware of the service but do not use it. 4.14 In summary, those groups most likely to benefit from using In Contact are those without a fixed line (perhaps using a mobile due to inability to obtain a fixed line), and those with incoming calls only services (1% of households). Awareness amongst this group as a whole stood at 19% and a further 1% claimed to use the service already. 4.15 Reasons for not using the service amongst those who may benefit, and were previously aware of the service, are shown in figure 4e. The most frequently cited reason was not having a fixed line at home, mentioned by half, however the majority of this group owned a mobile. Figure 4e: Reasons for not using BT In Contact service Base: All without fixed line phone, or an incoming calls only phone who are aware of but not using ‘In Contact’, May ‘03 (Base: 35)* * Extremely small base size so apply caution to findings and treat as indicative only. Chapter 5 – Billing Accuracy Perceptions of the accuracy of phone bills 5.1 Oftel's metering and billing scheme's objective is to enhance consumer confidence in the accuracy of telephone bills and to give wider consumer protection by an effective metering and billing systems approval scheme. This metering and billing certification scheme has now been revised and is being awarded to both fixed and mobile telephone suppliers that provide customers with bills that meet a defined standard of accuracy and a satisfactory level of billing complaint handling. Further information is available on Oftel's website at http://www.oftel.gov.uk/ind_groups/meter_bill/index.htm. 5.2 Oftel has undertaken to review the scope of the metering and billing approval scheme in 2004. In order to inform this review Oftel is committed to examining the economic case for the scheme and its extension. This is in line with the published Consumer Protection Policy Review and Regulatory Option Appraisal guidelines that have been set out by Oftel. To provide evidence for this, consumers were asked about their awareness of the certification scheme and how important it would be to them in choosing a new supplier. Consumers were also asked about their perception of billing accuracy. This evidence will be used to help quantify what impact fewer billing errors could have on costs to businesses and consumer confidence in the accuracy of their bills in order to help estimate the potential benefits of the scheme. Customers who receive a phone bill detailing their calls and charges were asked how accurately they thought their bills were calculated, taking into account the length of each call, the types of calls and any applicable discounts. 5.3 With regard to perceptions of billing accuracy, results were broadly similar amongst both fixed and mobile customers - 82% of fixed line customers think their phone bills are calculated either very or fairly accurately. Similarly, 85% of mobile customers (who receive a bill) thought their mobile bills were calculated at least fairly accurately. In general consumers were more likely to say they did not know how accurate their bills were than to say they were inaccurate, see figure 5a. 5.4 Those consumers most likely to think their bills were inaccurate were low-income groups, areas of high deprivation, non-white ethnic groups and large households. Previous research shows that the latter group are generally higher fixed telecom spenders. Figure 5a: Consumer perceptions of the accuracy of their telephone bills Base: UK adults with fixed line phone, May ’03 (Base: 1939), UK adults with mobile using monthly contract or all in one package, May ’03 (Base: 460) Awareness and potential importance of Oftel's metering and billing seal of approval 5.5 The metering and billing scheme was recognised by 12% of UK adults. Awareness had little impact on customers' perceptions of the accuracy of their bills. 5.6 The chart below compares levels of awareness of the metering and billing scheme with other Oftel initiatives such as Comparable Performance Indicators (CPIs), and Oftel's PASS scheme. Awareness of the metering and billing certification is twice that of PASS (6%), and slightly but not significantly lower than for the CPIs, both of which were measured in November '02. Awareness of this scheme amongst businesses is slightly lower at 8%. Figure 5b: Awareness of Oftel's initiatives Base: UK adults aged 15+. May ’03 (Base: 2116) 5.7 Fixed line customers were asked how important this certification would be in choosing a new fixed line supplier. In total 3 out of 5 fixed line customers said that they would take this into account when choosing a new supplier. 1 in 5 said it would be one of the most important factors, and a further 2 in 5 said they would take it into account but it wouldn’t be one of the most important factors – as shown in figure 5c below. It should be noted that due to the hypothetical nature of these questions, and findings from previous research on the information consumers used to assist select suppliers, proposed use of the scheme is likely to be an overestimation. In reality the proportion of consumers who would actively seek out information on the metering and billing certification when choosing a new fixed supplier is likely to be significantly lower, particularly given the low levels of awareness. 5.8 Fixed line customers were asked how important this certification would be in choosing a new fixed line supplier. In total 3 out of 5 fixed line customers said that they would take this into account when choosing a new supplier. 1 in 5 said it would be one of the most important factors, and a further 2 in 5 said they would take it into account but it wouldn't be one of the most important factors - as shown in figure 5c below. It should be noted that due to the hypothetical nature of these questions, and findings from previous research on the information consumers used to assist select suppliers, proposed use of the scheme is likely to be an overestimation. In reality the proportion of consumers who would actively seek out information on the metering and billing certification when choosing a new fixed supplier is likely to be significantly lower, particularly given the low levels of awareness. Figure 5c: Importance of billing accuracy scheme in choice of new telecom supplier Base: UK adults with a fixed line phone, May ’03 (Base: 1939) 5.9 Amongst those consumers that thought Oftel's metering and billing seal of approval would be one of the most important factors when choosing a fixed line supplier were those: previously aware of the scheme (36%), and those that thought their fixed line bills were not accurately calculated (37%). Chapter 6 – Response to automated answerphones 6.1 Half of fixed line customers remembered being asked by an automated answer phone to call back later because the network was busy and couldn’t connect a call. 6.2 Figure 6a shows actions fixed line customers said they generally take when they hear this message. 1 in 5 claimed they try dialling again immediately using the re-dial button. This equates to 1 in 10 of all fixed line customers. Use of the re-dial button has implications on how suppliers design their own networks. 6.3 A third said they try again immediately (either manually re-dialling or using the re-dial button). This equates to 17% of all fixed line customers, as shown in the chart below. Figure 6a: Actions taken when hearing a busy network message Base: UK residential fixed phone customers aged 15+, May ‘03 (Base: 1,939) Chapter 7 – Indirect Access, carrier pre selection and pre-pay cards Indirect Access 7.1 As mentioned briefly in chapter 4, in addition to BT and cable companies there are a variety of other suppliers which can be used for calls via an existing fixed phone line either by using additional equipment or entering a short code before dialling the number required. These suppliers include: Centrica, British Gas, One.Tel, Energis Communications Ltd, First Telecom. 7.2 Consumers were asked whether they were aware of any of these types of supplier and whether they currently used any. In total, 2 in 5 UK adults (39%) are aware of Indirect Access (IA) operators and 9% claim to use them. Awareness amongst those with a fixed line phone stands at 41% and usage at 10%, as shown in figure 7a. 7.3 Those consumers most likely to be aware of IA operators were middle aged, ABC1 social grades, customers with both fixed and mobile phones, BT customers and white ethnic groups. Those most likely to use IA were AB social grades, and customers with both fixed and mobile phones. This is detailed in figure 7b. Figure 7a: Awareness and use of Indirect Access, May 2001 – May 2003 Base: UK residential fixed phone customers aged 15+, May ‘03 (Base: 1,939) * Ad hoc survey not directly comparable due to differences in questionnaire and sample Ad hoc survey not directly comparable as representative of fixed phone households not UK adults 7.4 Use of IA has remained fairly stable between 8-11% since February ’02. The slight fall in use at this point is likely to have been partly caused by customers switching to use carrier pre selection, offering similar services (see paragraph 7.9). 7.5 As discussed in the November ’02 report, the increased use and awareness reported for October ’02 is more likely a reflection of the different sample used and alternate question phrasing than a real rise. A more comparable figure for that period would be 31% that were aware of an IA operator within their area, taken from the main quarterly survey for that period and hence a more comparable sample structure. It might be expected that this figure would be slightly lower than overall awareness as consumers may be aware of these suppliers but not that they are available in their area. IA accessed via prepaid calling cards 7.6 1 in 5 UK adults (21%) are aware of Indirect Access (IA) operators whose services are accessed by using prepaid cards and dialling a short code before each call – 3% claim to use them. Usage among those with a fixed line phone stands at 2%. Figure 7b shows awareness and use of these operators amongst fixed line customers. 7.7 Awareness of IA accessed via prepaid cards was highest amongst those aged 15-34 (25%), AB social grades (28%), higher income households (30%). Non-white ethnic groups were also significantly more likely to be aware of (31%) and use (20%) this service, than average. The latter is consistent with findings from qualitative research carried out by Oftel earlier this year examining telecoms use by low-income groups. It found that use of pre-paid cards was common among ethnic minority groups, used largely for international calls. www.oftel.gov.uk/publications/research/2003/ethnicity0403.htm. 7.8 Amongst those that use pre-paid cards average claimed spend was £17 per month. 38% claimed to spend £10 or less per month. These claimed expenditure figures should be treated with caution, as they are derived from a small sample size (47 respondents). Carrier pre-selection 7.9 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. 7.10 As found in previous Oftel research, awareness and use of CPS is significantly lower than for IA. 14% of UK adults claim to be aware of CPS operators and 2% use them. Awareness and use amongst those with a fixed phone stood at the same levels. This is similar to findings from research in March 2003 that put awareness at 14% and use at 1%. Current subscriber figures confirm growth in use of CPS, and there are currently around 1.3 million customers compared to around 1 million in March 2003. 7.11 Awareness of CPS is highest among AB social grades (21%) and BT customers (16%). There was no significant difference in awareness according to ethnicity. 7.12 In total 48% of UK adults are aware of either CPS or IA operators (including IA operators accessed via a prepaid card). Whilst not exclusively the same groups, the demographics of those aware of CPS are broadly similar to those aware of IA – ‘higher’ social grades and BT customers. Groups aware of IA via pre-paid cards were somewhat different – younger consumers, non-white ethnic groups, mobile-only households. Figure 7b: Summary of awareness and use of IA and CPS** Base: UK residential consumers aged 15+, May ‘03 (Base 2116) Chapter 8 – Use of public payphones 8.1 Almost half (46%) of UK adults claim to use a public payphone at least occasionally and 2% claim this is their main method of making and receiving calls. Previous research shows use of payphones had been declining due to the increased use of mobile phones. 8.2 As shown in the chart below, the proportion of frequent payphone users (at least monthly) has remained fairly stable in recent months, currently at 1 in 10 UK adults. Irregular usage (less than monthly) appears to have increased significantly this wave. However, this is to be expected given the infrequency of this event (using payphones once a year or less). Figures are subject to the event being sufficiently close to time of interview that they remember using, or to have even used a payphone at all within this time. Figure 8a: Frequency of payphone use Base: UK residential consumers aged 15+, May ‘03, (Base: 2116) 8.3 The groups that use payphones most frequently include younger consumers, and lower income groups, and unsurprisingly those without a fixed or mobile phone. For further information on the types of calls consumers make from public payphones and their reasons for doing so, please see Oftel’s report on use of payphones conducted in October ’02 (see www.oftel.gov.uk/publications/research/2003/pay0103.htm). 8.4 There were some regional differences in public payphone use. In Scotland, where there was lower ownership of a fixed line in the home, claimed use was higher than average (62%) and in Wales and Northern Ireland use was lower (32% and 35% respectively). 8.5 Following the reduction in use of public payphones, BT has proposed reducing the number of payphones within specific areas of the UK. Payphones are based on ‘sites’ spaced at around 10 minutes walking distance. The research aimed to establish the extent to which the removal of all payphones from specific sites would prevent usage ie would consumers be prepared to walk for 10 minutes to make a call from another payphone, or would they simply not bother. Caution should be applied to these findings, as there is no guarantee that consumers would actually find another payphone within this time. Therefore, results perhaps are a better indication of the proportion that would not walk 10 minutes or indeed any distance at all to use another payphone. 8.6 In total, as shown in figure 8b, around half of regular payphone users would either not be prepared to walk up to 10 minutes to the next payphone (39%), or would not attempt to find another payphone at all (12%). This equates to approximately 2.3 million adults. A further 7% said it would depend on the circumstance therefore either may or may not be prepared to find another payphone. Figure 8b: Distance prepared to walk to use another payphone Base: Those who use payphones at least monthly, May ‘03, (Base: 191) Annex A – Details of changes to Oftel’s quarterly residential survey, May 2003 Methodology In April 2003, Oftel changed the market research agency it uses to conduct the fieldwork for its UK quarterly residential surveys. At the same time Oftel took the opportunity to return to the use of CAPI from PAPI allowing greater flexibility and ease of interviewing. Sample The sample remains the same as previous waves, representative of UK adults, aged 15+, in terms of age, gender, social grade, working status, and region. We continue to ensure representation of rural and deprived areas in their natural proportions. As previously, controls are also set on the proportion of interviews conducted in cabled and non-cabled areas to ensure they are included in their natural proportions, using updated postcode data provided by the cable operators. *Impact of changes on results* Results have remained largely unaffected by this change in methodology. Annex B – Q13 residential questions on mobile telephony ASK ALL How many mobile phones in total do you and members of your household use? One Two Three Four or more None Don’t know ASK WHO HAVE A MOBILE PHONE IN HOUSEHOLD Do you personally use a mobile phone? Yes No Don’t know ASK IF PERSONALLY USE A MOBILE PHONE Which mobile phone network supplier do you personally use most often? O2 formerly BTCellnet T Mobile formerly One2One Orange Virgin Vodafone Other (WRITE IN) Don’t know ASK IF PERSONALLY USE A MOBILE PHONE Which of these statements best describes the mobile package you personally use most often? A Pre-paid / pay as you go package (ie after paying a one-off fee for the phone, "top up" is bought as and when required) B Monthly contract (ie line rental and call charges are paid each month) C All in one package (ie phone and any line rental is paid in advance and calls are either billed monthly or paid by call vouchers) Other Don’t know ASK ALL ON A MONTHLY CONTRACT OR ALL IN ONE PACKAGE Thinking about your mobile phone bill, how accurately do you think the costs for each call are calculated, taking into account the length and type of calls, and any applicable discounts? Very accurately Fairly accurately Not very accurately Not at all accurately Don’t know ASK IF PERSONALLY USE A MOBILE PHONE How satisfied are you with the following…..? a) Your mobile service overall b) The overall value for money from your mobile phone supplier c) Geographic coverage of your network Very satisfied Fairly satisfied Not very satisfied Not at all satisfied Don’t know ASK IF PERSONALLY USE A MOBILE PHONE Please tell me whether you agree or disagree with the following statements about mobile phone services? a) I prefer to stick with a high quality and reputable supplier rather than shop around for the cheapest deal b) It is easy to find and compare information on the costs and choices available c) I think I am getting the best value deal for what I need d) I’m really not interested in comparing the choices and costs available e) In order to get the handset I want, I am prepared to pay a bit more for my mobile network service f) ASK ALL WITH PRE-PAID PACKAGE I would consider changing to a monthly contract package if this was cheaper for me g) ASK ALL WITH A MONTHLY CONTRACT PACKAGE I would consider changing to a ‘pay as you go’ package if this was cheaper for me Agree Disagree Neither/no opinion/DK ASK ALL WITHOUT A FIXED LINE PHONE AT HOME OR MOBILE IN THE HOUSEHOLD Why does your household not have a fixed line or a mobile phone? ASK ALL WITH MOBILE IN HOUSEHOLD BUT NO FIXED LINE PHONE AT HOME Why does your household use a mobile phone but not a fixed line telephone? ASK ALL Which of these best applies to you when it comes to buying telecoms and Internet services? Just read out the letter that applies. A I tend to buy the latest products or services soon after they come out B I don’t usually buy the latest products or services straight away, but I am often one of the first of my friends to have them C I don’t usually buy the latest products or services until most of my friends or family have them D I rarely buy the latest products or services, even when they have been around for a long time Annex C – Q13 residential questions on fixed telephony ASK ALL Do you have a fixed line phone in your home? Yes No Don’t know ASK ALL THOSE WITH A FIXED LINE PHONE AT HOME Which of the companies on this card does your household use for your home fixed line telephone services? If you use more than one fixed line supplier, please tell me the names of all that you use. Please do not count mobile phone companies. BT NTL Telewest Someone else not BT, NTL or Telewest Cable Don’t know ASK ALL THOSE WITH A FIXED LINE PHONE AT HOME Does your fixed-line telephone allow you to receive calls only or both make and receive calls? Only receive calls Both make and receive calls Don’t know ASK ALL 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 work Fixed line phone at home Other (WRITE IN) Don’t know ASK ALL ANSWERING A MAIN METHOD And how satisfied are you overall with [insert main method] as your main method of making and receiving calls? Very satisfied Fairly satisfied Not very satisfied Not at all satisfied Don’t know ASK ALL In addition to BT and cable companies you can get telephone services from other suppliers by using the line already in your home. Which, if any, of the types of suppliers shown on this card were you aware of before today? Just read out the letter or letters that apply Non cable and non BT suppliers A Where 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 B Where you tell them in advance which calls you want to use them for, and these calls will automatically go through the supplier C Where you pre-pay a certain amount or buy a prepaid card and you dial a short code before each call None of these Don’t know ASK OF ALL AWARE Which, if any, of these types of suppliers do you currently use? Non cable and non BT suppliers A Where 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 B Where you tell them in advance which calls you want to use them for, and these calls will automatically go through the supplier C Where you pre-pay a certain amount or buy a prepaid card and you dial a short code before each call None of these Don’t know ASK ALL THOSE THAT USE PREPAID CALLING CARDS Approximately how much do you spend per month on calls using pre-paid cards? Up to £5 £5-£10 £11-£15 £16-£20 £21-£25 £26-£30 £31-£50 More than £50 Don’t know ASK ALL Are you aware of the BT service "In Contact?" It allows you to buy telephone call time on BT pre-paid cards. You use this call time by entering a code before dialling from your fixed-line telephone. And do you use this service? Yes – I use this service Yes – but I do not use this service No – I have not heard of this service Don’t know ASK ALL WITHOUT A FIXED LINE PHONE, OR AN INCOMING CALLS ONLY PHONE WHO ARE AWARE BUT NOT USING IN CONTACT Why do you not currently use the BT "In Contact" service? ASK ALL THOSE WITH A FIXED LINE PHONE AT HOME 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 ASK ALL THOSE WITH A FIXED LINE PHONE AT HOME Thinking about your fixed line telephone bill, how accurately do you think the costs for each call are calculated, taking into account the length and type of calls, and any applicable discounts? Very accurately Fairly accurately Not very accurately Not at all accurately Don’t know ASK ALL Oftel’s metering and billing seal of approval also known as B.A.B.T approval, is awarded to fixed and mobile telephone suppliers that provide customers with accurate bills and a satisfactory level of billing complaint handling. Before now, were you aware of this scheme? Yes No Don’t know ASK ALLTHOSE WITH A FIXED LINE PHONE AT HOME Taking your answer from this card, realistically how important would Oftel’s metering and billing seal of approval be in choosing a new telecoms supplier? Just read out the letter that applies. A One of the most important factors B A factor that would be taken into account, but not the most important C A factor that would be unlikely to be considered Other Don’t know ASK ALL THOSE WITH A FIXED LINE PHONE AT HOME Thinking about the calls you make from your fixed line telephone at home, have you ever been asked by an automated answer phone to call back later because the network is busy, and cannot connect your call? Yes No Don’t know ASK ALL HAVE EXPERIENCED AUTOMATED VOICE ANSWER Which of the following best describes what you generally do when you hear this message? A I try again immediately using the last number re-dial button on my phone B I try again immediately manually redialling the number C I wait until later to make the call D I do not make the call at all It depends on the type of call I am making Other Don’t know ASK ALL THOSE WITH A FIXED LINE PHONE AT HOME Which one of these aspects of your fixed line telephone service is most important to you? And which one is the second most important to you? Reliability of service Getting the cheapest possible deal Overall value for money Quality of customer service Range of services offered Using a supplier you know and trust None of these Don’t know ASK ALL THOSE WITH A FIXED LINE PHONE AT HOME Please tell me whether you agree or disagree with the following statements about fixed line telephone services? a) I prefer to stick with a high quality and reputable supplier rather than shop around for the cheapest deal b) It is easy to find and compare information on the costs and choices available c) I think I am getting the best value deal for what I need d) As the cost of my fixed line at home is not a major household expense, I’m not concerned about getting a cheaper deal e) I’m really not interested in comparing the choices and costs available Agree Disagree Neither/no opinion/DK ASK ALL 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 ASK ALL USE PAYPHONES AT LEAST MONTHLY Thinking about when you use public payphones, if you were not able to use the one you wanted to for any reason, how far would you be prepared to walk to use another payphone? Less than 5 minutes 5-10 minutes More than 10 minutes I would find another payphone regardless of the distance It would depend on why I wanted/needed to use the payphone I would not go to another payphone Other Don’t know ASK ALL WHO USE PUBLIC PAYPHONES AS THEIR MAIN METHOD OF TELEPHONY Approximately how much do you spend per month on calls from payphones? Up to £1 Over £1 up to £2 Over £2 up to £3 Over £3 up to £4 Over £4 up to £5 Over £5 up to £10 Over £10 up to £15 Over £15 up to £30 Over £30 Don’t know ASK ALL Which of these best applies to you when it comes to buying telecoms and Internet services? Just read out the letter that applies. A I tend to buy the latest products or services soon after they come out B I don’t usually buy the latest products or services straight away, but I am often one of the first of my friends to have them C I don’t usually buy the latest products or services until most of my friends or family have them D I rarely buy the latest products or services, even when they have been around for a long time ASK ALL WITHOUT A FIXED LINE PHONE AT HOME OR MOBILE IN THE HOUSEHOLD Why does your household not have a fixed line or a mobile phone? ASK ALL WITH MOBILE IN HOUSEHOLD BUT NO FIXED LINE PHONE AT HOME 25. Why does your household use a mobile phone but not a fixed line telephone?