MCA Market Research Consumer perception survey: fixed broadband - PowerPoint PPT Presentation

MCA Market Research Consumer perception survey: fixed broadband November 2019

Purpose The MCA Consumer Perception Surveys are carried out every two years  to get insight on the preferences of household consumers when purchasing electronic communications services. This research informs us on:  the average monthly expenditure by end-users on fixed broadband  services being purchased and price sensitivities; the level of satisfaction with the quality of the services and the ability  of users to switch between products; the type of contract agreements that are selected and the quality of  the operators’ response to faults.

Methodology Keep tabs on fixed Provide for better analysis Provide for better broadband services in Malta of fixed broadband services regulatory decisions EMCS Ltd carried out survey fieldwork on June and July 2019 Fieldwork Sample Responses • Target respondents stratified • 20-minute phone interviews. • 800 net respondents to the according to age composition survey. of the Maltese population. • 784 survey respondents selected randomly. • Margin of error 4% at 95% • Survey respondents confidence interval. distributed across Malta’s • Only one person per geographical regions and household interviewed, aged socio economic categories of 18 and over. the Maltese population.

Methodology – Sample Distribution Sample size distribution based on the age composition of the Maltese population (18 years or over) Number of respondents - 800 18-29, 18% 65+, 23% 30-49, 32% 50-64, 27%

Access and Usage

Access and usage (1) Availability of fixed broadband in local households Number of respondents with fixed broadband subscription – 784 i.e. 98% of the total number of respondents 98% 94% 80% 77% 68% 56% 2007 2011 2013 2015 2017 2019 Just 2% of respondents have no fixed broadband connection. The main reason quoted by • respondents for not having a fixed broadband subscription was that they found the service to be too complicated. All of the respondents without a fixed broadband connection will not be purchasing the service • within the next 6 months.

Access and usage (2) Number of connections at home Number of respondents with a fixed broadband connection in their household - 784 2018 2019 97% 94% 6% 3% Single connection Two connections

Access and usage (3) Reasons for having multiple connections (In case of more than one connection) Are you considering disconnecting one of the subscriptions over Number of respondents with multiple the next 12 months subscriptions – 20 i.e. 3% of the total number of respondents Number of respondents with multiple subscriptions – 20 i.e. 3% of the total number of respondents 2017 2019 No Yes - Melita Yes - GO Yes - Vodafone (Malta) 13% Better products or services 30% Service is provided for free 15% for a short period of time 5% 5% 6% To avail of a bundle offer 15% 8% Service is cheap 5% 58% Promotional offer(s) 5% 35% 0.04 More channels available 0.08 Don't know 55% 8% Other 40%

Access and usage (4) Features sought when determining which fixed broadband connection to purchase (ranked in order of importance) Number of respondents with a fixed broadband connection in their household – 784 2017 2019 37% 32% 32% 23% 22% 19% 14% 8% 3% 3% 3% 3% 1% Price Download speedAvailability in a bundle Upload speed Contractual obligationsQuality of service Other

Access and usage (5) Propensity to purchase fixed broadband in a bundle Number of respondents with a fixed broadband connection in their household – 784 5% 10% 85% Yes No Don't Know

Access and usage (6) Number of people making use of their fixed broadband in a household Number of respondents with a fixed broadband connection – 784 25% 25% 23% 15% 6% 3% 3% 1 2 3 4 5 6 or more No answer In some instances more users than household members were reported by respondents, in view of • visitors to the household regularly and making regular use of the internet. 24 respondents did not indicate the number of people who used internet in their household. •

Access and usage (7) Average time spent online per day by household Online activities engaged on by household members under the age of 18 members under the age of 18 Note: respondents can give more than one reply Number of respondents with a family member under 18 years of age making use of a fixed broadband connection – 215 i.e. 27% of the total number of respondents 31% 26% 25% 24% 25% 16% 12% 12% 10% 8% 7% 5% 1% 2 hours a day Between 3 to 5 hours per More than 5 No answer or less 4 hours per day hours per day day

Download speed and technology

Download speed and technology (1) Type of purchase by download speed Perceived adequacy of download speeds Number of respondents knowing their download speed Number of respondents with a fixed broadband of their broadband connection – 200 connection - 784 i.e. 26% of the total number of respondents 75% 2015 2017 2019 2015 2017 2019 17% No 22% 46% 23% 32% 25% 21% 21% 21% 83% 18% 16% Yes 78% 9% 4% 4% 4% 3% 77% 2% Less than 10Mbps to 31Mbps to 51Mbps to >100Mbps 10Mbps 30Mbps 50Mbps 100Mbps

Download speed and technology (2) Possibility of upgrading existing connection to ultra fast download speeds (i.e. download speeds of 100Mbps or more) in the next 12 months Number of respondents knowing their download speed and having a connection less than 100Mbps their broadband connection – 50 i.e. 25% of the total number of respondents 62% 2015 2017 2019 39% 29% 28% 28% 24% 24% 17% 14% 11% 6% 6% 5% 4% 4% Yes No - I do not need that kind of No - Price is too expensive No - I never sought Don't know speed information about this service Among this cluster, 24% indicated the possibility of upgrading their existing connection to ultra fast download speeds. A considerable increase over the previous survey (then 7%).

Download speed and technology (3) Reasons for acquiring a broadband connection of 100Mbps or more Number of respondents with a fixed broadband connection supporting a download speed of 100Mbps or more – 150 i.e. 75% of the number of respondents having a fixed broadband connection and knowing their download speeds 2017 2019 59% 54% 24% 20% 10% 7% 6% 5% 5% 4% 4% 2% Better overall TV streaming Internet games Teleworking Video streaming and Other internet browsing (including igaming) - or downloads The primary reason individuals opt for a broadband connection of 100Mbps or more relates to ‘better overall internet browsing’ (59%). This was also the main reason identified under the previous study.

Download speed and technology (4) Propensity to test download speed Outcome of download speed tests Number of respondents with a fixed broadband Number of respondents who have performed speed connection - 784 tests on their fixed broadband connection – 182 i.e. 23% of the total number of respondents 2017 2019 2017 2019 82% 71% 44% Speed the same as advertised 49% 41% Speed slightly lower than advertised 40% 16% 13% 10% 6% 15% Speed much lower than 2% 2% advertised 12% yes, but rarely yes, on a No, but I know No regular basis that there are such tests

Download speed and technology (5) Type of devices connected to a fixed broadband connection within a household – 784 Note: respondents can give more than one reply 2017 2019 86% 76% 65% 60% 60% 54% 53% 51% 47% 37% 17% 11% Smart Phones Laptop Tablets Smart TV (s) Desktop Game consoles

Expenditure, quality of service and switching

Expenditure, quality of service and switching (1) Average monthly expenditure on a fixed broadband connection Number of respondents with a fixed broadband connection and knowing their monthly expenditure – 251 i.e. 32% of respondents having a fixed broadband connection at home 2015 2017 2019 54% 52% 28% 22% 22% 18% 16% 15% 14% 11% 9% 9% 8% 8% 6% 5% 1% 1% Less than € 20.00 Between € 20.00 - € 29.99 Between € 30.00 - € 49.99 More than € 50.00 Don't know, part of a Don't know bundle

Expenditure, quality of service and switching (2) Perceptions of the cost of fixed broadband connection Number of respondents with a fixed broadband connection and knowing their monthly expenditure – 251 i.e. 32% of respondents having a fixed broadband connection at home 2017 2019 50% 48% 36% 32% 12% 11% 4% 3% 2% 2% Cheap Neither expensive or Expensive Very expensive Don't know cheap 44% of respondents that know their monthly expenditure feel that the service is expensive.

Expenditure, quality of service and switching (3) Perceived satisfaction with main fixed broadband Reasons quoted for not being satisfied or connection indifferent with the service Number of respondents with a fixed broadband Number of respondents perceiving their connection connection – 784 to be unsatisfactory/indifferent – 151 2015 2017 2019 i.e. 19% of total number of respondents having a fixed broadband connection at home 53% 2017 2019 69% 47% 42% 39% 54% 32% 42% 28% 29% 16% 19% 14% 14% 14% 9% 9% 8% 7% 3% 3% 2% 2% 1% 1% Frequent Download speed Billing issues Poor customer Other Disconnection is slower than care Least satisfied Dissatisfied Indifferent Satisfied Highly advertised satisfied