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Consumers increasingly giving up
their fixed line phones
New MORI research reveals that consumers expect voice and data at home
to be mainly wireless, many expect this could happen in under two years.
Global research by MORI, conducted for Nokia, has identified a strong
trend for consumers to move from their fixed line phones to use their
mobile handsets for all or most of their voice calls.
Fixed-to-Mobile Substitution (FMS) is occurring across the four major
markets surveyed - Great Britain, USA, Germany and South Korea - with
upwards of 45 million consumers estimated to now make all their voice
calls from their mobile phone in these markets alone.
Among the first global surveys of FMS as a consumer trend, the research
also suggests mobile could challenge fixed line connections for data access
in the home, too. On average, those who claim they are certain or very
likely to adopt a wireless service for data expect this to happen in 1
to 2 years. Interest is greatest among the young and those who already
have broadband Internet access at home.
The research confirms consumer FMS is an ongoing evolution. The landline
remains the connection of choice for longer calls from the home, with
the exception of shorter calls to friends and to other mobile phones,
although differences do emerge by market.
The rational motivations for maintaining a landline subscription focus
on price perceptions, for example 69% of respondents in Britain considered
cost to be the key reason for choosing fixed calls ahead of mobile calls,
more than any other country. But, the need for a landline for data and
greater perceived reliability of the landline phone are important criteria
in the minds of US and German consumers.
Emotional reasons to keep a landline phone exert a surprisingly strong
force on consumers. These centre on the association of the landline phone
with the home and the "cosiness" of the call experience. The
research reveals that in order to encourage greater call substitution
at home the mobile phone needs to be strongly associated with value for
money, good sound quality and reliable reception.
Regardless of some reservations, there exists a view among respondents
that the future will inevitably be wireless. The perception is that wireless
technology will improve, the quality and reliability issues will become
less important and that data will be available through a wireless network
for home Internet users. For these reasons the perceived value of the
landline subscription is decreasing.
A perception of a higher price differential between a mobile and landline
phone also needs to be addressed in all markets. However, in many instances
respondents were unaware of the actual price differential between their
landline and mobile phone. Several anticipated that, on comparing the
total cost of their mobile subscription with the overall cost of their
landline subscription, the price differential would be minimal and might
actually favour the mobile.
A significant number, in particular in South Korea, consider they would
not take out a landline Subscription on moving house or flat. In fact
amongst the South Korean sample, 65% of the respondents make all or most
of their voice calls from a mobile phone.
Within each market however, there are demographic differences that should
be considered when developing FMS marketing campaigns. It seems women
are more likely to use landlines for the majority of their calls. Two
groups can be identified: those who predominantly used landlines rather
than mobiles were more likely to be women aged 35+ and home owners; and
those who use landlines exclusively were more likely to be women and aged
50+.
The most fertile market for FMS is the young professional group, who use
their mobile phone for most of their voice calls; are more likely to be
male; middle to high income, and make a large volume of voice calls.
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