Broadband ‘more important’ than TV
Posted by Geoff Slaughter - 08/06/09 at 06:06 am
UK consumers in times of recession are more likely to cut back on their TV subscriptions than sacrifice their broadband service, according to a report published by Ofcom yesterday. The fact is gently presented within the commentary of the regulator's sixth market report, which seems keen to show no favouratism to any of its 'children' instead choosing to provide ample bosom, for all in the communications sector, within which to nuzzle. The outpouring of bonhomie and back-slapping doesn't stop there as it is proclaimed that we are increasingly getting 'more' but paying less. We wonder just how long it will be before we can all look forward to a new series of Harry Hill's Broadband Burp...
It appears then that consumer's love is not quite as unconditional for their mobile, broadband, phone and TV companies, as that of their industry steward. Nearly half of all consumers polled by Ofcom said that they were taking bundled services (i.e. more than one) from a company, up from the same period in the previous twelve months. Around a quarter of consumers said they would be more prepared to shop around now for their mobile phone service and broadband provider than a year ago (29 and 19 per cent respectively).
The last 12 months has seen growth in mobile broadband users with over 1 in 10 reporting to use such services; this new spending perhaps coming at the expense of the mobile phone market. The majority of mobile phone users said they would hang onto their current mobile handset in order to get access to cheaper tariffs at upgrade time. The mobile industry has since responded with a wave of SIM-only tariffs priced lower than those that roll-in the cost of a shiny new handset. With shorter contracts (typically one month) an increasing number of customers (around a quarter of all sales recorded in the first part of 2009) are able now to switch network provider more quickly. This is furtile ground for networks, thought to be preparing "killer" handset offers for when consumers start taking a more relaxed view of economic conditions.
At the same time the industry is trying to counter-balance the risk of so many customers having an "easy-out" with the introduction of 24-month contracts, the longest seen in the sector so far. Around 1 in 10 are opting for these 'super-contracts' in exchange for heavily-discounted handsets or other freebies such as laptops and 'on-trend' netbooks.
