Trends affecting the mobile phone industry - survey

Trends affecting the mobile phone industry and who is the nation’s favourite provider

New research shows that landlines are just so 2011, as the younger generation rely on their mobile phones and ignore the traditional landline phone.

The independent Canstar Blue survey found twice as many Gen Y respondents as the average Kiwi do not have a landline phone, paving the way for its eventual decline.

Gen Ys were also revealed to use their work time less efficiently than baby boomers, being four times more likely to spend their employer’s time to check social media updates on their mobile phones than older colleagues.

Derek Bonnar, Canstar New Zealand National Manager, says that the majority of consumers are in general doing a lot more with their phones - but not thinking of the security aspect.

“Only 32% use a password to protect their personal details, which is worrying when our research shows an increasing reliance on phones to store information and pay for goods. In fact, this mobile commerce trend is laying the foundation for an escalating battle for control of people’s wallets between mobile phone companies and the banks.

“Forget a paperless society, we’re now moving towards a plasticless society with 30% of Gen X and 28% of Gen Y respondents using their phones as a method of payment.”

Surprisingly, mobile phone customers are showing preference for pay-as-you-go over traditional fixed term contracts. Two thirds of the younger generation are opting to pre-pay.

“In the US market, consumers are shifting to prepay, no-commitment deals, because of economic hardship,” says Bonnar, “it’s possible that this is also happening in New Zealand.”

Challenger brand 2Degrees has the most satisfied customers, receiving five stars for overall satisfaction ahead of mobile giants Telecom and Vodafone, and retailer The Warehouse.

“2Degrees has reinvigorated the mobile phone market and delivered value to customers with initiatives such as rolling over unused minutes. That’s something that customers appear to appreciate.”

Respondents rated their satisfaction with their mobile provider across seven categories:

1. Overall satisfaction
2. Value for money
3. Service
4. Range of Mobile phones
5. Range of plans
6. Phone accessories
7. Clarity of advice

About the survey

Canstar Blue commissions Colmar Brunton Australia to survey 2,500 New Zealand consumers each month to measure their satisfaction across a range of products and services.

The outcomes reported here are the results from a survey of consumers who purchased a mobile phone handset and/or mobile phone plan from a New Zealand mobile phone retailer within the last 12 months, within the survey group - in this case, 1358 people.

Canstar Blue is a division of financial research and ratings company, CANSTAR which has been operating in New Zealand for nearly a decade. Canstar Blue provides New Zealanders with the latest customer satisfaction ratings on products and services free of charge via the website www.canstarblue.co.nz.

*To view the full results of the Canstar Blue survey go to: www.canstarblue.co.nz

ENDS

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