BiPartition

Thursday, May 21st, 2009

Telecommunications and Media Sector Suffering Due to Reduction in Spending by Consumers

Booz & Company, a research firm, has conducted a survey on the changing pattern of consumer spending in Britain. According to its report, the consumers will be decreasing their budget for media and telecommunication services in the near future. This change in consumer spending has the potential of significantly reducing the profits of the mobile broadband industry.

The results of the survey are as follows:

• 25% of the consumers have significantly decreased their spending on media and telecommunication services;
• about 26% will decrease their spending on these services over the next few months; ie switching to pay as you go internet;
• 23% of the consumers may opt out of their broadband or TV connections;
• around 25% may opt out of their mobile phone connection or may hunt for a less expensive contract; and
• 45% of the consumers who use telecom services like broadband and phone would like to explore bundled packages of these services

The last point is quite positive for those providers who already offer bundled broadband/TV/phone packages. One such provider is BT and it would not be a surprise if the company sees an expansion in its consumer base in the next few months.

It was pointed out by Michael Peterson, head of the British division of Booz & Company, that the consumers have become more resourceful and knowledgeable about the services that are available to them. Therefore, companies can no longer ignore the need for more effective long-term strategies to remain competitive.

This entry was posted on Thursday, May 21st, 2009 at 7:16 am and is filed under Emptor Infos, Tech + Life, Telecommunication. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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