Australians prefer mobiles over landlines: study

A report has found that nearly half of all households use mobile phones instead of fixed-line phones as their main voice communication.
http://www.abc.net.au/news/stories/2008/05/09/2240229.htmAustralians Increasingly Prefer Mobiles to Landlines
A report released by the Australian Communications and Media Authority shows that 90 per cent of household consumers have both a fixed line phone and mobile phone, with nearly half (45%) preferring to use mobiles as their main voice communications.
http://cellular-news.com/story/31029.phpMobiles challenge fixed line phones as the main form of communications for household consumers [news release]A report released today by the Australian Communications and Media Authority shows that 90 per cent of household consumers have both a fixed line phone and mobile phone, with nearly half (45 per cent) preferring to use mobiles as their main voice communications.According to ACMA’s research, the majority of consumers use their fixed-line and mobile phones as complementary services with fixed-line used when at home and for longer calls and mobiles when outside the home.A small proportion of household consumers (around 10 per cent) — ‘techno non-adopters’ — do not have a mobile phone and choose to rely solely on their fixed-line phone for voice communications.There is also an increasing proportion of consumers — ‘enthusiastic embracers’ — who have or intend to replace their fixed-line phone service with other forms of voice communications. A quarter of household consumers indicated they would consider replacing their fixed-line service with another form of communication. Cost was the biggest factor in considering replacement, with many indicating they would replace their fixed-line if the price of mobile calls was reduced.The research provides a snapshot of consumers’ choice and preferences in using telecommunication services.The report also found that despite the availability of converged technologies that offer both voice and data services on one device, such as 3G, VoIP and mobile email, most service replacement relates to fixed-line and mobile phone voice services. Although take-up of these converged technologies is low, consumers are starting to become aware and understand the benefits of these services.Other report findings include:

  • Nearly a third of consumers own a 3G-capable phone, however two-thirds of these do not use the 3G services available on their phones;
  • One in five household consumers with internet access have used a VoIP service and over 80 per cent of households with internet access are aware of VoIP; and
  • Age is a significant factor in the take-up and use of these new and emerging services.

The report is the fifth in ACMA’s ongoing Telecommunications Today research program conducted in 2007 examining the take-up and use of telecommunications services in Australia and can be found on ACMA’s website.Media contact: Katie Tilden, ACMA Media, on (02) 9334 7902.BackgrounderThe Australian Communications and Media Authority is currently examining a number of aspects of the use and provision of telecommunications services in Australia.This research program, Telecommunications Today, is designed to assist ACMA in its role as industry regulator and is consistent with its regulatory responsibilities to provide information about the telecommunications industry.The consumer choice and preference report is the fifth in the Telecommunications Today series. The previous reports examined consumer, farm and SME take-up, use and satisfaction of telecommunications services. The last report in this series will examine consumer online activity.The objectives of this report were to:

  • Identify residential and business consumers’ preferences and choice of telecommunication services.
  • Consider consumer attitudes towards their choice of, and preferences for, services.
  • Ascertain the level of uptake and use of new and emerging services such as mobile email, VoIP and 3G.
  • Consider how location, income, family structure, age and profession affect consumer substitution of voice services and take-up of new and emerging services in the telecommunications industry.

Information in the two reports is drawn from several sources including:

  • Commissioned work from Woolcott Research, which undertook 12 focus group discussions of residential household consumers recruited from a random sample as well as quantitative research using 1,600 respondents.
  • Roy Morgan Single Source survey of individual consumers aged over 14 years; and
  • Sensis® Business Index telephone survey of 1,800 SMEs conducted between 24 April and 31 May 2007.

‘Techno non-adopters’ and ‘enthusiastic embracers’Respondents who view their fixed-line phone as their main form of communication can be categorised as ‘techno non-adopters’ or ‘mainstream followers’. These consumers tend to comprise the older age group (86 per cent of those over 61 years and 91 per cent of retirees). They also tend to live in non-metropolitan areas (65 per cent) and to be female (63 per cent).The focus groups also revealed that ‘techno non-adaptors’ are highly reliant on fixed-line phone services and many use mobile phones solely for emergency purposes. These respondents do not see new technologies as essential or beneficial, and are often pushed or helped by someone else. In many instances, these focus group participants indicated that their phone had been given to them by partners or family members.Those who consider mobile phones to be their main form of voice communication tend to be ‘enthusiastic embracers’ or technologically advanced ‘mainstream followers’. These respondents enjoy using new services and technologies, tend to comprise the younger age group (70 per cent of those aged between 18 and 31 years), and use services such as broadband, 3G and VoIP.Interestingly, small and medium enterprise (SME) consumers also use their fixed-line and mobile phones as complementary services, with 93 per cent having both a fixed-line and mobile phone. However, SME consumer reliance on fixed-line phones is more prominent, with 77 per cent using their fixed-line phone as their main form of communication. Only 19 per cent consider a mobile phone to be their main form of communication. Businesses in the finance and insurance industries, and health and community services are more likely to use fixed-line phones as their main form of communication (96 per cent and 90 per cent respectively), while those working in the building and construction industry are more likely to use mobiles as their main form of communication (53 per cent).Two distinct consumer views on the cost of mobile phones have emerged from the focus groups. Half of the participants, particularly the ‘techno non-adopters’, feel that mobile phone costs are prohibitive. This group believes that mobile plans are too complex and difficult to compare. On the other hand, the ‘enthusiastic embracers’ feel that mobiles offer good value for money, especially the capped plans. This group accepts the cost of mobiles as a part of life or considers them a ‘utility’ cost. As a consequence, fixed-line rental costs are perceived as expensive because they are not considered a necessary service.Another factor for consumers considering substituting their fixed-line phone service for a mobile is the use of the fixed-line for an internet connection (10 per cent of respondents stated that this was their main use of the fixed-line). This was supported by focus group participants, particularly ‘enthusiastic embracers’, who only require a fixed-line for an internet connection and resent having to pay line rental for a fixed-line phone. Ten per cent of respondents also see no benefit in using a fixed-line phone. These respondents are more likely to use the mobile as their main form of communication and to be ‘enthusiastic embracers’, aged between 24 and 31 and male. Of those who see no benefit in using a fixed-line phone, 44 per cent would consider replacing the service.This news release was sourced from the ACMA website at www.acma.gov.au/WEB/STANDARD/pc=PC_311148.

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