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.
About the report
The report provides a review of the key learnings from the global research programme MORI has conducted on behalf of Nokia’s Networks business group focusing on Fixed to Mobile Substitution (FMS). Nokia is committed to understanding end user markets. Research is used to support client engagements and develop appropriate products and services.
This research has been designed to provide an end user perspective on FMS. The study examines consumer user behaviour and not business users. Throughout, the research concentrates on personal voice calls made from a mobile phone or a landline phone. The remit of the study also includes an evaluation of attitudes towards landline and/or wireless connections for data in the home. The research was conducted using qualitative and quantitative techniques in all markets.
The quantitative fieldwork was conducted during the second quarter of 2004 Specific details of the methodology applied in each market are as follows:
Great Britain – sample size 2,011, face-to-face interviews, weighted to reflect national population, representative of 46 million adults age 15 and over
South Korea – sample size 1000 face to face interviews, representative of adults that use a landline or mobile phone in Seoul, representative of 10 million adults age 18 and over
USA – sample size 2,241 interviews conducted over the Internet, weighted to reflect national population, representative of 215 million adults age 15 and over
Germany – sample size 1,015 face to face interviews, weighted to reflect national population, representative of 68 million adults age 16 and over The selection of the markets was partly determined by reviewing known existing volumes of voice calls made from a landline or mobile as a share of total voice call traffic.
Founded in 1969, MORI is one of Britain’s fastest growing market and public opinion research agencies. It provides a full range of quantitative and qualitative research services, working with hundreds of clients in both the private and public sectors. MORI embraces both traditional and technologically advanced research methods. Based in London, with offices around the world, MORI adds value to research with interpretation, recommendations, and advice. Experienced staff also offer clients a perspective from national and global socio-cultural trends. MORI holds an important position within the British media, regularly providing senior staff as commentators across a broad range of topics.
MORI abides strictly by the Market Research Society’s professional Code of Conduct.
About Nokia Networks Market Research
Nokia Networks End User Research provides professional global end user market research and market analysis. It is dedicated to delivering first class market research insight to Nokia and its customers throughout the world. Nokia is committed to understanding end user markets. Research is used to support Nokia customers succeed in their business and to develop appropriate products and services.
Nokia is the world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia is dedicated to enhancing people’s lives and productivity by providing easy-to-use and innovative products like mobile phones, and solutions for imaging, games, media, mobile network operators and businesses. Nokia is a broadly held company with listings on four major exchanges.
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