ICT usage among business customers

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1 ICT usage among business customers November 011 slide 1

2 Agenda Context Main Findings ICT Usage Switching Service Costs and the Recession Service Providers Internet and Broadband Contact with ComReg and complaints Conclusions slide

3 Context slide 3

4 Research Objectives Research Requirements A telephone survey among business consumers to examine access to, usage of and attitudes towards communications services and technologies such as fixed line telephony, mobile phones, broadband access and pay TV In order to Track key trends and developments and provide ComReg with enhanced market understanding to use in future planning and regulatory policy formulation and public dissemination Continuation of a tracking survey commissioned annually by ComReg slide 4

5 In more detail Understanding access to and usage of Information and Communication Technologies (ICT) On-going tracking Telephone interviews among 500 SMEs Up to 50 employees Quotas: No of employees, Region, Sector Respondent is person responsible for decision making re ICT Data weighted to provide accurate reflection of population slide 5

6 Main findings slide 6

7 ICT Usage slide 7

8 SME ICT Usage Usage of fixed line phones and the internet is almost universal (98% for each) 94% have broadband 80% of businesses have mobile phone services 58% have a bundled package Fixed telephone 88 Internet access 8 Mobile telephone 4 Majority of bundles include fixed line phone and internet 53% fixed line + internet 30% fixed line + internet + mobile 7% fixed line + mobile 3% internet + mobile Don`t know Inclusion of a mobile telephone in a bundled package increases notably with company size Base: All businesses (500); businesses with a bundled package (91) Q5 Firstly please could you tell me which of the following services your company has? Q5a Does your business subscribe to a bundled package from your telecoms service slide 8 provider? Q5b Which of the following services are included in your bundled package?

9 Reasons for having a fixed line phone Half of companies are dependent on their fixed line to do business Couldn t do business without it 54 Customers/suppliers know our number 43 Makes our business seem reliable 34 More reliable than mobiles/better coverage 4 Need fixed line for Internet connection 4 Cheaper than mobile calls 0 Use for international/long distance calls 16 Just always had one Don t know Base: Those businesses with a fixed line (49) Q1 Why does your company have a fixed line? slide 9

10 Frequency of employees using other options when fixed line phone is free and available for use Mobile phone to make a call Mobile phone to send a text message Internet to make a VoIP call On a daily basis Several times a week About once a week About once every weeks About once a month Less often than once a month Base: Those with both a mobile and fixed line/voip and fixed line (396/81) Q17a How often do your employees use a mobile phone to make a call/send a text message/use the internet to make a VoIP call when a fixed line phone is free and slide available 10 for use? Never Don't know Three in five use a mobile phone to make a call or send a text message on a daily basis when a fixed line phone is free and available; VoIP used daily by one in four with access to it

11 Switching slide 11

12 Whether switched supplier in the last 1 months A third of businesses have switched bundle supplier in last 1 months bundle 34 fixed line 0 mobile 14 7 in 10 found it easy to switch internet 10 Internet switching mainly for service quality reasons (10 out of 6) Base: all respondents who have relevant service (bundle 91/fixed line 35/mobile 87/ internet 51) Q Have you switched your supplier for your bundled services/fixed line/mobile/internet in the last 1 months? slide 1

13 Ease of switching bundled supplier Seven in ten businesses found the switching process easy Very easy Quite easy Neither easy nor difficult Quite difficult Very difficult Don't know Bundle including mobile Bundle including internet Bundle including telephone Total Base: all respondents who have switched supplier for their bundled package in the last 1 months (100)/including mobile (57)/including internet (8)/including telephone (9) Q5e: Was the process of switching bundled supplier.? slide 13

14 Length of contract and awareness of terms and conditions for early termination Businesses more likely to have fixed term contract than consumers Mobile phone 1 6 months 1 months 18 months years 3 years More than 3 years Don t know Don t have a fixed term contract Not aware of t&c s for cancellation 3% Internet % Base: Those with a mobile (40)/internet (489) Q3 What is the length of contract you have with your mobile/fixed line/internet provider? Q33 Are you aware of the terms and conditions relating to early termination of your slide 14 contract?

15 Service costs & the recession slide 15

16 Monthly spend on fixed line service Almost half of businesses spend over 300 per month on fixed line to to Average monthly spend is to to to 49 1 to 35 Less than 0 DK Spend bands include both those who knew exact amounts and those who were only able to give an estimate. Average spend is based on those who gave an exact amount Base: All businesses with fixed line phones (396) Q17g Approximately how much would you estimate you spend each month on your fixed slide 16 line phone service (inc VAT)?

17 Monthly spend on mobile services A similar pattern of spend on mobiles to to Average monthly spend is to to to to 35 1 Less than 0 DK 10 Spend bands include both those who knew exact amounts and those who were only able to give an estimate. Average spend is based on those who gave an exact amount Base: All businesses with mobile phone (87) Q33a Approximately how much would you estimate you spend each month on your mobile phone service (inc VAT)? slide 17

18 Monthly spend on internet services and whether would switch for 10% saving Lack of awareness of internet costs among businesses to to For a 10% saving on broadband 43% would consider switching to an alternative platform (19% very likely and 4% fairly likely) Average monthly spend is to to to The question on switching reflects the attitudes of respondents to the hypothetical nature of the question posed and may not necessarily reflect real life behaviour 1 to 35 Less than 0 DK 6 6 Spend bands include both those who knew exact amounts and those who were only able to give an estimate. Average spend is based on those who gave an exact amount Base: All businesses with internet access (489) Q61 Approximately how much would you estimate you spend each month on your broadband service (inc VAT)? Q61a If you could make a 10% saving on your broadband bill by switching to an alternative broadband slide 18 platform to what you currently use, how likely would you be to consider switching?

19 Whether ICT costs have changed in last 1 months and whether reduction foreseen in coming 1 months A third of businesses have seen a decrease in telecoms costs; similar proportion see reduction ahead Don't know Don't know 4% % Definitely do 15% Decreased 33% Definitely don't 31% Probably do 18% Remained the same 49% Increased 14% Probably don't 7% Neither 7% Telecoms costs last 1 months Whether foresee reduction in ICT spend next 1 months Base: All businesses (500) Q63b In your opinion, over the last 1 months have your company s overall telecommunication costs increased, decreased, remained the same? slide 19 Q63a Given the downturn in the Irish economy, do you foresee a reduction in your spend on ICT in the next 1 months?

20 County Company size Whether foresee reduction in ICT spend by company size and county A third of businesses foresee a reduction in ICT in next 1 months Definitely do Probably do Neither Probably don't Definitely don't Don't know 100 to to to to Less than Dublin Munster Connaught/Ulster Leinster Total Base: All businesses (500) Q63a Given the downturn in the Irish economy, do you foresee a reduction in your spend on ICT in the next 1 months? slide 0

21 Service Providers slide 1

22 Suppliers for fixed line phone services Almost two in three businesses have a fixed line provided by Eircom Eircom 6 Vodafone Imagine Other 8 O 5 Pure Telecom Digiweb BT Ireland (Esat BT) UPC Blueface Base: all respondents who have a fixed line (49) Q5c. Who is your supplier for this bundle? Q6. Who is the main fixed line phone service provider that your business uses for its voice calls? slide Q7. What other, if any, fixed line service providers does your business use for its voice calls?

23 Suppliers for mobile phone services Vodafone has largest share of business mobile market closely followed by O Vodafone 49 O 37 Eircom Mobile Don t know Other Meteor Base: Those with a mobile phone (40) Q5c. Who is your supplier for this bundle? Q18 What is the main company that supplies your business s mobile telephone services? slide 3 Q19 What other, if any, mobile phone service providers does your company use?

24 Suppliers for internet services Eircom is the main supplier of business internet Eircom 57 Other Vodafone 1 11 Imagine O 7 9 One in five use more than one supplier Digiweb Magnet Ireland UPC BT Ireland Base: Those businesses with internet (489) Q5c Who is your supplier for this bundle? Q34 What is the main company that supplies your business s internet connection? Q35 What other, if any, internet connection providers does your company use? slide 4

25 Importance of and satisfaction with factors in selecting fixed line provider Cost of calls also most important to businesses in choosing fixed line supplier 4.49 The cost of calls 3.75 The cost of line rental Good customer service Importance Satisfaction Range of services offered Ability to bundle different services Businesses also generally satisfied. Lowest satisfaction with cost of line rental very unimportant/very dissatisfied most important/very satisfied Base: Those businesses with a fixed line (49) Q8 How important are the following factors in selected a fixed line phone provider? Q9 How satisfied are you with your fixed line phone provider s service in relation to the slide 5 following factors?

26 Importance of and satisfaction with factors in selecting mobile provider Cost of calls again outweighs other factors for mobile provider choice. Similar satisfaction across all features The cost of calls Good coverage/reception Business specific packages Importance Satisfaction 5.41 Good customer service Data packages/internet access offers Handset availability Least important/very dissatisfied Most important/very satisfied Base: Those with a mobile phone (40) Q0 How important are the following factors in selecting a mobile phone provider (1-6)? Q1 How satisfied are you with your current mobile phone service provider in relation slide 6 to the following factors (1-5)?

27 Importance of and satisfaction with factors in selecting ISP For businesses internet speed is even more important than cost The speed Cost Reliability/stability of connection Security Importance Satisfaction Good customer service Ability to bundle different services Least important/very dissatisfied Most important/very satisfied Base: Those with internet (489) Q36 How important are the following factors in selecting an ISP for your business (1-6)? Q37 How satisfied are you with your current ISP in relation to the following factors slide (1-5)? 7

28 Level of agreement with attitude statements There is a general perception among businesses that the telecoms market is more competitive Disagree strongly Disagree Don't know Agree Agree strongly I believe the telecommunications market is more competitive than it was 1 months ago Higher agreement among those whose costs have decreased When choosing a telecommunications supplier, I place more importance on the quality of service than the price Level of agreement increases with monthly spend I believe there are savings to be gained by changing my telecommunications supplier % of those whose costs decreased in last 1 months Base: All businesses (500) Q63c To what extent do you agree with the following statements? slide 8

29 The Internet and Broadband slide 9

30 Whether have broadband and type of connection Business broadband is mainly through DSL connection 98% of businesses have internet. 94% have broadband DSL connection Wireless broadband % where unbundled internet provided by Eircom Don t know 8 Fibre optic cable Dedicated leased line Satellite broadband 3G Data cards or mobile broadband dongles businesses without broadband 5 use ISDN line 4 use regular phone line 4 didn t know 4 said another means Other Base: Those with internet/broadband (489/471) Q5 Do you have an internet connection? Q4 Do you have broadband? Q44 What type of broadband service or connection do you subscribe to? slide 30

31 Mobile devices provided to employees and whether only means of internet access More than half of businesses with mobile services supply Smartphones to employees Smartphones (e.g Blackberry, iphone) 54 None of these 39 3G Data cards or mobile broadband dongles 7 Only means of internet access for 15% Netbooks or notebooks Tablet computers (eg ipad) 9 16 The larger the company, the more likely to provide mobile devices Q Does your company currently provide any of the following mobile devices to any of its employees? Base: Those with a mobile phone (40) Q4 Are these mobile broadband devices the only means of internet access for your business? Base: Those who use mobile broadband slide 31 (109)

32 Contracted download speed and whether speed matches expectations Most businesses don t know their contracted speed Don t know Greater than or equal to 50 megabits per second 4 5 Don't know 3% Faster 9% Great than 30 megabits per second but less than 50 megabits per second Great than 0 megabits per second but less than 30 megabits per second 1 Slower 0% Greater than 10 megabits per second but less than 0 megabits per second Greater than 6 megabits per second but less than 10 megabits per second 6 megabits per second What I would expect 68% 38% are likely to upgrade to higher speed in next 1-4 months (16% very likely) 5 megabits per second 4 megabits per second 3 megabits per second megabits per second 1 megabits per second 51 kilobits per second As with consumers, most feel the speed is as they expect but the rest more likely to find it slower than faster Base: Those with internet (489) Q59 What stated download speed is your internet supplier contracted to provide to your company? That is what speed package you are paying for? slide 3 Q59a Does the actual speed that you currently experience meet your expectations?

33 Broadband improvements most willing to pay for and actual preparedness to pay The improvement businesses most willing to pay for is faster speed Actually prepared to pay more Faster speed 37 4% Not interested in any of these 4 Improved security 14 8% Guaranteed bandwidth 10 6% Higher quality of service 9 4% Lower contention ratio 5 3% Base: Those businesses with internet (489) Q51 Which of the following improvements to the broadband service would you be most prepared to pay for? slide 33 Q5 And would you be prepared to pay more than you do currently to have

34 Reasons for feeling the internet has had a positive influence 9 in 10 businesses say the internet has had a positive influence on their company More efficient communication Time savings Productivity improvements To help increase sales IT cost savings Couldn't do business without it Increased revenue Access to information (e.g. research) Other To allow teleworking Improved customer service (online access/support) Improved data transfer (large files, images, etc) Modern business tool (used by everyone) Able to access services online (e.g. banking, training, etc) Enable online presence (sales, own website) Improved advertising/marketing (higher profile) in 10 say they have changed internal processes as a result of having broadband -less likely in companies with <10 employees Base: Those businesses with internet (489)/saying it has had positive impact (447) Q50a Why do you say it has had a positive impact? slide 34

35 Benefits hoped to achieve through broadband and whether achieved Benefits achieved More efficient communication 63 99% Time savings 33 96% Productivity improvements 9 96% To help increase sales IT cost savings Increased revenue % 88% 91% Don`t know/can`t remember 10 To allow teleworking Access to information (e.g. research) Other Improved advertising/marketing (higher profile) % The benefits realised are in line with their expectations regarding broadband Base: Those businesses with internet (489) Q46 What benefits did you hope to achieve through having broadband? Q47 And which of those benefits would you say you have actually achieved through broadband? Q49 Are slide 35 there any internal processes that you have changed as a result of having broadband?

36 County Company size Whether use VoIP One in five businesses with a fixed line use VoIP; more common among larger companies 100 to to 99 0 to to 19 Less than 10 Dublin Munster Connaught/Ulster Leinster Total Yes No The majority use Skype or a similar service (75%) but for one in five the VoIP service is part of their contract More than half (60%) have been using VoIP services for more than one year Only 17% of non users think they will start to use in next 1 months Base: all respondents who have a fixed line, except those who have it included in a bundled package (35) Q7a. And do you use a VoIP service such as Skype or a similar service from your internet service provider? slide 36

37 VoIP usage versus traditional landline Two-thirds of businesses using VoIP only use it occasionally We only use VoIP occasionally 67 We make as many calls as we can using VoIP but still make more using landlines We make most of our calls using VoIP I don't know how much VoIP is used within the company Primarily used to call other VoIP users or to make international calls: 49% VoIP calls to other VoIP users 38% calls to international fixed lines 8% calls to international mobiles Base: all respondents who use a VoIP service (91) Q7e: To what extent do you use this VoIP service instead of a traditional landline? Which of the following statements is closest to describing your usage? slide 37

38 County Company size Likelihood of non users starting to use VOIP over the next 1 months Most are not likely to start using VoIP services in the next 1 months Very likely Fairly likely Not very likely Not at all likely Don't know 100 to to to to Less than Dublin Munster Connaught/Ulster Leinster Total Base: all respondents who do not use a VoIP service (398) Q7f. How likely is your company to start using VoIP over the next 1 months slide 38

39 Contact with ComReg and complaints slide 39

40 Whether contacted supplier in last 1 months to complain and whether resolved to their satisfaction Around a third have contacted their provider to make a complaint; those contacting their internet provider most likely to be satisfied with the resolution Yes, completely Yes, partially No The problem is still being investigated mobile 30 mobile fixed line 3 fixed line internet 3 internet A notable minority unhappy with the outcome of the complaint Base: all businesses who have a fixed line phone (49)/mobile phone (40)/internet service (489); all consumers who had made a complaint (fixed line phone 155/mobile phone 119/internet 156) Q. Have you ever contacted your fixed line phone /mobile phone/internet provider in the last 1 months to make a complaint about something? slide 40 Q. And was the problem resolved to your satisfaction?

41 County Company size Whether heard of ComReg Awareness of ComReg is high in the business community Yes No Don t know 100 to to to to Less than Dublin Munster Connaught/Ulster 71 9 Leinster Total Base: All businesses (500) Q64 Before this interview had you ever heard of the Commission for Communications Regulation, also known as ComReg? slide 41

42 Also high awareness of ComReg s role 74% were aware they could contact ComReg with regards to complaints they were unable to resolve with ICT providers (56% of all businesses) 8% (6% of all businesses) said that they had done so in the last 1 months Of these 9 businesses: 8 very satisfied 8 quite satisfied neither satisfied nor dissatisfied 4 quite dissatisfied 7 very dissatisfied.with the outcome slide 4

43 Whether visited ComReg websites Total Less than to 19 0 to to to None of these Don t know in 10 had visited a ComReg website Usage much higher among larger businesses most used Base: All aware of ComReg (376) Q68 Which, if any, of the following ComReg websites have you ever visited? slide 43

44 Conclusions slide 44 slide 44

45 Conclusions Fixed line phones seen as essential by most businesses Some evidence of growing use of mobiles also businesses tending to provide employees with Smartphones One in five use VoIP, rising to a third in businesses with over 100 employees. 9% of users try to use as much as possible or make almost all calls via VoIP Internet seen as a positive impact on business by 9 in 10 Bundles very common (6 in 10 businesses use one) generally include fixed line and internet but mobiles usually included for bigger businesses slide 45

46 Conclusions Fixed term contracts are common for businesses but there is a lack of awareness of the terms and conditions for cancelling contracts Internet (45% businesses unaware) Mobile (3% businesses unaware) Slightly more switching than last year; a third had switched bundle supplier most found switching easy to do most switch to save money but for internet switching it s service quality Some evidence of the effects of the recession a third of businesses have reduced spend in last 1 months and similar proportion expect to do so in next 1 months only 1 in 5 very likely to switch ISP for a 10% saving slide 46

47 Conclusions 3 Eircom is main supplier of fixed line and internet While cost is the most important feature when choosing a fixed line or mobile supplier, for businesses internet speed is more important than cost. A significant minority are planning an upgrade to a higher speed in the near future Customers generally satisfied with their providers (especially with mobile and internet providers) and businesses see telecoms market as more competitive than 1 months ago High awareness among businesses of ComReg and its role slide 47

48 slide 48

49 Business classification slide 49

50 Number of employees to to to to Less than Base all businesses (500) Q1. How many people are employed in your company? slide 50

51 Company sector Real estate, renting and business services 3 Manufacturing Finance / Insurance Mining and Construction Retail Trade Wholesale Trade 7 7 Transport, storage and communications Hotels and Restaurants Agriculture / Forestry / Fishing Public/Government Service 5 Recycling/Utilities/Water Base all businesses (500) Q. What is your main business activity? slide 51

52 Location Dublin 3 Rest of Leinster 7 Munster 6 Connaught/Ulster Base all businesses (500) Q3. Which county is your workplace in? slide 5

53 Business location In a large town or city 9 A small or mid-sized town 4 A business park in an urban area 1 A rural area or village 19 A business park in a rural area Base all businesses (500) Q69. Is your company located in slide 53

54 Company ownership Irish owned-private company 84 Subsidiary of overseas company 5 Irish owned-public company 4 Government department Semi-State 1 Other Base all businesses (500) Q70. Is your company slide 54

55 Respondent position CEO/Managing Director/Owner Manager 8 Other Director/Manager 5 IT Manager/IT Director 9 Finance Director/Finance Manager 8 Other Base all businesses (500) Q71. What is your own position in the company? slide 55

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