Business Telecommunications Survey Wave 2, 2005 Survey Data ...

SME & Corporate ICT Research – Wave 2 2005

Presentation of Findings

December, 2005

41103420/2 BMC/PM

982s2 Dairygold Brand Dynamics - Meat and Cheese [drive:\directory path\filename.ppt 1]

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2Presentation Outline

• Introduction– Research Objectives– Methodology– Sample profile

• Research Findings– Fixed line market– Mobile market– Internet and broadband communications

• Conclusions

• Appendix: Sample Details

Introduction


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4Research Objectives

• This is the second wave of a business market tracking research programme being undertaken on behalf of ComReg.

• The main purpose of the research is to gain an in-depth understanding of current information and communication technology (ICT) usage and attitudes to ICTs among a representative sample of Irish SMEs and large Corporate businesses.

• The specific areas to be explored in the second wave of research included:

– Fixed line market

– Mobile market

– Internet and broadband communications

• The survey findings will be used by ComReg for market understanding, future planning and policy formulation, and public dissemination.


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5Methodology

• Telephone interviews were conducted among a sample of 500 SMEs and 50 Corporates.

• SMEs were defined as companies with less than 100 employees.

• Quota controls set for company size were based on the total number of employees each company size segment accounts for. Representative quota controls were also set for industry sector.

• Large corporates were defined as companies employing 100 or more employees. Quota controls were set to ensure that 50% of the sample employed 100-299 employees, and 50% of the sample employed 300+ people. Representative quota controls were also set for industry sector.

• Where the final profile of respondents differed slightly to the quota controls originally set, minor weighting adjustments were made.

• Interviews were held with the person in the company responsible for decision-making in relation to telecommunication and IT services.

• The fieldwork was conducted in November 2005.


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6Sample Structure

• In 2005 the sample structure was changed compared to previous business research undertaken by ComReg.

• The main change that has occurred is the sample distribution across SME company size segments.

• There is now a greater representation of small companies (those with less than 10 employees) in the sample.

• The distribution of the SME sample across each of the company size segments has been determined by the number of employees each company size segment accounts for i.e it is estimated that 57% of all employees are employed in companies employing less than 10 people, as such 57% of the SME sample is made up of companies employing 1-9 people.

• This change has implications for the interpretation of any tracking data shown in the survey. Smaller companies tend to be less technically sophisticated and their use of ICTs tends to be lower than larger organisations. As a result some of the ICT tracking figures may show a decline. However, much of this apparent decline is likely to be largely explained by the change in company size distribution in the sample.

• The industry sector segmentation structure has also been changed. SIC industry sector definitions have been used in line with OECD suggestions. Quota controls were set based on the number of employees estimated to be in each industry sector.


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7Sample Profile – Number of Employees

Base: All respondents (n=550)

42%57% 57%

44%30% 30%

14% 13% 13%

1-10

11-40

41-99

2004(353)

2005 W1(500)

SMEs Corporates

1-9

10-49

51-99

101-299

300+

100-299

300+

The 2004 SME figures relate to the sample used for the SME Telecommunications Survey 2004. The Corporate figures relate to the Broadband Data and Communications Survey 2004.

2005 W2(500)

1-9

10-49

51-99

50% 50% 50%

50% 50% 50%

2004(50)

2005 W1(50)

2005 W2(50)

300+

100-299


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8Sample Profile – Industry Sector

Wave 1(500)

Wave 1(50)

Agriculture / Forestry / Fishing

Mining

Manufacturing

Transport Recycling/utilities/waterWholesale

Retail

Hotels/restaurants

Finance

Services

Government

2%

9%

11%

5%1%11%

15%

12%

4%

30%

1%

2%4%

18%

4%2%10%

6%

12%

32%

10%

SMEs Corporates

Wave 2(500)

Wave 2(50)

2%

9%

11%

4%1%10%

15%

13%

4%

29%

1%

4%

16%

4%2%10%

8%2%

11%

32%

11%


-

Research Findings

Fixed Line Market


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11Main Fixed Line Supplier


5

20

75

TotalWave 2

%

Eircom only

Eircom and others

Others only

Q. Which fixed line phone services provider does your company use for its voice calls?

71

8

21

74

8

18

Wave 1%

SMEs Corporates

Wave 2%

Wave 1%

Wave 2%

• 75% of all businesses surveyed are only using eircom for their fixed line services, 5% are using eircom and another provider, and 20% are only using alternate providers.

• Reliance on alternate providers is most evident among companies with 50-99 employees, those in the manufacturing and wholesale and retail sectors and those with a “medium” fixed line spend (between €751- €2000 average per month).

6

20

75

2

23

75


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12

• Almost half of all SMEs (47%) and over 4 in 10 (44%) Corporates claim to have switched supplier at some stage for any of their fixed line services.

• Switching activity was found to be highest among companies with 50-99 employees (54%) those operating in construction/mining (59%) and those in hotels/restaurants (56%). On a regional basis, switching was lowest in Connaught and Ulster at 43% and highest in the Rest of Leinster at 53%.

Q. Have you ever switched supplier for any of your fixed line services?

1%

52% 51%

47% 44%

4%0%

20%

40%

60%

80%

100%

SMEs Corporate

Don't knowNoYes

Switching ActivityNew



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• All those who have switched were asked if they were satisfied with the process of switching. A majority were satisfied but about one in four of both SMEs and Corporates were not –a sizeable minority.

• Those who were not satisfied with the process of switching also tended to be dissatisfied with the provider they switched to.

Q. Were you satisfied with the process of switching supplier?

4

2 4 % 2 6 %

7 2 % 7 4 %

-0 %

2 0 %

4 0 %

6 0 %

8 0 %

1 0 0 %

S M E s C o r p o r a t e

Don't knowNoYes

Satisfaction with Switching ProcessNew

Base: All who have switched (n=255)


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14

• Over three in ten were not satisfied with the supplier they switched to.

• This could suggest that initial expectations are not being met or that some providers are over-promising on potential cost-savings or service quality.

• On a regional basis, those in Dublin appeared to be most satisfied (72%) compared to those in the Rest of Leinster who were least satisfied (60%).

• Satisfaction tended to be higher among those with an above average fixed line spend, perhaps suggesting that higher spenders receive a better level and quality of service.

Q. Were you satisfied with the supplier you switched to?

1%

31% 30%

67% 66%

4%0%

20%

40%

60%

80%

100%

SMEs Corporate

Don't knowNoYes

Satisfaction with new SupplierNew



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15

• Just over half of all those who switched, switched back to their original supplier.

• Of those who were dissatisfied with the supplier they switched to, 90% switched back.

• It is interesting to note that even among those who were satisfied with the supplier they switched to, 39% switched back to their original supplier.

• Generally those who switched back were more likely to have less than 10 employees, a relatively low fixed line spend and to be currently only using eircom for their fixed line phone services.

Q. Did you switch back to your original supplier?

2

43%54%

55%46%

-0%

20%

40%

60%

80%

100%

SMEs Corporate

Don't knowNoYes

Extent of Switching Back New



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• Four in ten SMEs and Corporates say they would switch for a 15% reduction.

• Those most likely to switch are companies with 50-99 employees (51%), those operating in the wholesale sector (49%) and those who are using a provider other than eircom.

• Among those currently only using eircom, 35% said they would switch for a 15% reduction.

• The findings clearly suggest that price is not the only determinant of switching activity. Other factors, such as service expectations, personal relationships and a general avoidance of the perceived “hassle factor” associated with switching continue to be barriers to switching.

Q. If you were offered a 15% reduction on all your fixed line calls by a well-known and reputable fixed line services provider, do you think you would switch to them or would you prefer to just stay with your current provider and avoid any possible hassles or inconveniences associated with switching?

17%

43% 37%

40% 40%

23%

0%

20%

40%

60%

80%

100%

SMEs Corporate

Don't knowSwitch Stay with current

Likelihood of Switching for 15% ReductionNew



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17

7

22

10

1

6

30

12

23

27

6

24

2624

0% 1-10% 11-20% 21-30% 31-40% 41%+ DK

Average:

SME: 18%

Corporate: 16%

Q. What is the absolute minimum percentage reduction on your fixed line bill,which would encourage you to definitely switch to another line provider?

CorporateSME

Minimum Percentage Needed to Encourage Switching New


• The average amount cited among those only using eircom was 19% compared to 14% among those who are currently only using alternate providers.

• Savings in and around 18% are probably attainable for certain types of calls at least, yet many still choose not to switch.


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• The average monthly fixed line spend is €549 among SMEs and €3,230 among Corporates.

• Within the private sector finance and wholesale companies are the biggest spenders

• Those who are only using eircom tend to have lower than average spend compared to those who are using other providers.

Q. What is your company’s average monthly bill for fixed line voice services?

Average Fixed Line SpendNew


SME

%

Corporates

%

Less than €250 42 2

€251-€500 23 2

€501-€750 7 -

€751-€1000 4 8

€1001-€2000 6 14

€2001-€5000 2 19

Greater than €5000 2 28

Average €549 €3,230


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19

• Corporates are more likely than SMEs to say that their monthly fixed line spend has increased over the last 12 months. However, they are also more likely to have said that they experienced a decrease.

• Nearly seven in ten (67%) SMEs believe that there has either been no change or a decrease in their monthly fixed line spend.

• On an industry sector basis, increases were most evident among those operating in the services sector (32%).

• The reality is that many fixed line call charges have become more competitive over the last number of years.

Q. Would you say that your monthly spend on fixed voice telephony serviceshas increased, decreased or stayed the same over the last 12 months?

6 %

1 8 %2 7 %

4 9 % 2 9 %

2 7 %3 9 %

5 %0 %

2 0 %

4 0 %

6 0 %

8 0 %

1 0 0 %


Don't knowIncreased

Change in Fixed Line SpendNew

Stayed the same


Decreased


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• Those who claim that their spend has increased were asked whether they thought this was a result of higher prices, increased usage or a combination of both.

• Very few claimed it was a result of increased prices only.

• Just over half of SMEs opted for a combination of both, while almost half of all Corporates claimed it was as a result of increased usage.

Q. Do you think this increase is due to…

4%

52%40%

35%49%

9% 6%

4%0%

20%

40%

60%

80%

100%

SMEs Corporate

Base: All who believe their spend has increased (n=155)

Reasons for Increased Fixed Line Spend

Higher prices for fixed line services Increased usage of fixed line services by employees Combination of both higher prices and increased usage

New

Don’t Know

Mobile Market


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23%12% 11%

2%

44% 47%

45% 41%54% 53%

23% 4%

2% 2% -2%2

2%

36% 39%

0%

20%

40%

60%

80%

100%

Wave 1 Wave 2 Wave 1 Wave 2

Mobile Phone Market Share*

• Vodafone continues to have a slight lead over O2 in the business market, although O2 appear to have made some gains over the last 6 months

• Meteor appears to be making little impact on the business market.

• 3 launched their service just prior to this research, but had not yet impacted on penetration by the time this research was completed (November ’05).

• Over one in five SMEs (23%) do not have any company mobile phones. This was most evident among those with less than 10 employees (27%) and those in the hotels/restaurants sector (33%).

Q. What company supplies your mobile telephone calls?


SME Corporates

Vodafone

O2

Meteor

Don't know

No company mobile

*Note: Company Mobile Phone is defined as any phone used for business purposes, regardless of whether bills are pre-paid or post paid, or if employees are reimbursed for calls made from private phones


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23

• All businesses were asked how business mobile calls were paid for. In a majority of companies, mobile bills are paid for in full.

• Only a small number do not pay for any employee mobile phone usage. That was particularly evident in companies with less than 10 employees.

Q. How are business mobile calls made by employees paid for by the company?

Payment of Business Mobile Calls

SME

%

Corporate

%

Company pays all bills in full 61 72

Employee pays bills/costs and seeksexpenses for work-only calls

9 13

Company pays a fixed percentage ofeach bill and employee pays balance

1 6

Company does not pay for any mobilephone usage of employees

16 9

Other 2 -

Don’t know 12 3

New



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24

• SMEs with company mobiles are on average spending marginally more on mobile calls than they are on fixed line services (€549)

• Average spend was highest among those in the financial and the wholesale sector.

Q. What is your company’s average monthly spend on mobile phone services?

Average Mobile SpendNew

Base: All with company mobile phones/All who pay mobile phone bills (n=451)

SME

%

Corporates

%

Less than €250 43 2

€251-€500 19 13

€501-€750 8 2

€751-€1000 6 4

€1001-€2000 5 9

€2001-€5000 3 11

Greater than €5000 1 24

Average €562 €2,809


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25

• Corporates in particular have found that their mobile spend has increased over the last 12 months.

• Among SMEs increases were most evident among companies with 50 or more employees, those in the services sector, and those with a high mobile spend.

• A small minority of both SMEs and Corporates feel that they have experienced a decrease. This could be due to lower usage or greater control and limitations over employee mobile usage.

• Compared to perceived changes in fixed line spend, respondents were much less likely to have experienced either a decline or no change in mobile spend.

Q. Would you say that your company’s monthly spend on mobile phoneservices has increased, decreased or stayed the same over the last 12 months?

9%

14%21%

41%17%

36%

53%

10%0%

20%

40%

60%

80%

100%

SMEs Corporate

Changes in Mobile Spend New

Base: All with company mobiles (n=451)

Don't knowIncreasedStayed the same

Decreased


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26

• Increased usage is considered the main reason for any increase in mobile spend rather than higher prices. This is especially true among Corporates.

• Increased usage could be driven by an increase in the number of employees with mobile phones as well as a general increase in individual usage.

• Overall 34% believed that it was a combination of both higher prices and increased usage – 36% of SMEs and 24% of Corporates.

Q. Do you think this increase is due to…

3 6 %

5 6 %7 2 %

7 % 4 %

2 4 %

0 %

2 0 %

4 0 %

6 0 %

8 0 %

1 0 0 %


Reasons for Increase in Mobile Spend

Higher prices for mobile services

Increased usage of mobile services by employees

or a combination of both higher prices and increased usage

New

Base: All who feel their mobile spend has increased (n=169)

NOTE SMALL BASE OF CORPORATES (n=23)


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27

• Just over six in ten Corporates and five in ten SMEs are currently committed to a contract with their mobile phone services provider.

• Being on a contract appears to be directly related to company size and mobile spend.

• Contracts were most evident among companies based in Dublin (62%) compared to those in Connaught/Ulster (36%).

Q. Are you currently committed to a contract with your mobile phone service provider?

8 %

3 8 %3 3 %

5 3 %6 2 %

4 %0 %

2 0 %

4 0 %

6 0 %

8 0 %

1 0 0 %


NoYes

Mobile ContractsNew


Don’t know


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28

• Corporates were mush more likely than SMEs to consider their contract a major barrier to switching to another mobile services provider.

• For the most part companies do not appear to find contracts a barrier. This could imply that their initial contract term has been completed or they feel confident that the contract can be over-ridden easily enough.

Q. Is this contract a major barrier to switching to another provider?

1 0 %

7 2 %

6 0 %

1 8 %

3 7 %

3 %0 %

2 0 %

4 0 %

6 0 %

8 0 %

1 0 0 %


Contracts a Barrier to SwitchingNew

Base: All with company mobiles and committed to a contract (n=244)

NOTE SMALL BASE OF CORPORATES (n=28)

NoYes Don’t know


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29Mobile Data Services Provided

Q. Does your company provide any of its employeeswith any of the following mobile Data Services?

MMS (Picture) messaging

Mobile Email (Using a Blackberry or PDA)

Other

Information download over a mobile (GPRS)

SMS (Text) messaging

None


SME%

Corporates%

61

15

15

11

1

35

79

15

53

33

2

14

• Text messages appear to be the most widely used data service in the business market.

• Use of data services generally is considerably higher among Corporates than it is among SMEs, particularly mobile email and GPRS.

• Compared to Wave 1 there has been little change in the use of wireless email.

• The findings suggest that some technology services on offer may be moving a little faster than business demands.


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30

• The perceived usefulness of data services is mixed, particularly among SMEs. While over 3 in ten SMEs find them very useful, almost 4 in ten do not find them particularly useful.

• Those who consider them useful are more likely to be using services such as mobile email and GPRS.

• While those who find them not very useful tend to be only using SMS.

• Corporates who have a a higher level of data service usage than SMEs appear to find them relatively more useful.

• Overall, the findings suggest that once more sophisticated services are used, companies are more likely to value them.

• It would appear that some businesses would benefit from a greater understanding and awareness of the business utility of data services.

Q. How useful are mobile data services to your company in conducting business ona scale of 1 ten 10 where 1 means not at all useful and 10 means extremely useful?

3 8 %

2 7 %

3 7 %

3 4 %4 6 %

1 8 %

0 %

2 0 %

4 0 %

6 0 %

8 0 %

1 0 0 %


4-7 Quite useful1-3 Not very useful

8-10 Very useful

Usefulness of Data ServicesNew

Base: All who use mobile data services (n=302)


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• Awareness of 3G mobile services is quite high at 75% among all respondents, rising to 94% among Corporates.

• Lack of awareness was most evident among companies with less than 10 employees, those in the construction sector and those with a low mobile spend.

Q. Are you aware of 3G or third generation mobile phone services?

26%

6%

73%

94%

0%

20%

40%

60%

80%

100%

SMEs Corporate

NoYes

Awareness of 3G ServicesNew



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32Mobile Phone Services Provided

Q. Does your company currently provide any of the followingmobile phone services to any of its employees?

Base: All with company mobiles and aware of 3G (n=341)

SMEs%

Corporates%

7

6

10

8

76

4

19

42

33

26

39

-

3G handsets

3G Data Cards

GPRS or 2.5G handsets

Wireless LAN cards

None of these

Don’t know

• Despite a reasonably high level of awareness 3G services, usage remains low among SMEs.

• Compared to wave 1 there has been little change in the use of 3G handsets (6% of SMEs and 18% of Corporates).

• Use of “none of these” has also remained mostly unchanged and is concentrated among smaller companies, those in manufacturing or the hotel/restaurants sector and those based in Connaught/Ulster.


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33Likelihood of Providing 3G Handsets

Q. How likely is your company to start providing 3G handsetsor data cards to any of its employees within the next 12 months?

2% 5%10% 7%6% 5%

5%

60%

53%

5%

25%

-1%

16%

Extremely likely (6)

Very likely (5)

Fairly likely (4)

Fairly unlikely (3)

Not very likely (2)

Not at all likely (1)

Don’t know

Mean:

SME%

Corporate%

1.8 1.8

New

Base: All companies who are aware of 3G services but not currently providing

any to its employees (n=258) NOTE SMALL BASE OF CORPORATES (N=17)

• Among those not currently providing any 3G services to its employees, only 13% consider it likely that they will start providing 3G handsets or data cards to any of its employees within the next 12 months.

• Overall the findings suggest that many businesses have not been bowled over by 3G services and have yet to see the business benefits associated with using them.


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34

• Over six in ten respondents indicated a preference for dealing with just one company for their fixed and mobile services whereby they receive just one bill and have a single point of contact.

• Interest in a single provider was highest among companies with 50-99 employees, and companies based in Munster.

Q. Would you prefer to deal with just one company for your fixed and mobilephone services, receive just one bill and have a single point of contact?

23%

17% 18%

60% 62%

20%

0%

20%

40%

60%

80%

100%

SMEs Corporate

Don't know

NoYes

Preference for a Single ProviderNew

Base: All companies with mobile phones (n=451)Base: All Respondents (n=550)


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35Likelihood of Switching for a Single Provider

Q. If you got a 10% discount on mobile and fixed line calls by using just one company for theseservices, rather than two providers, how likely would you be to switch to this one company?

1 8 % 1 6 %

2 8 %3 6 %

8 %

1 4 %8 %

1 6 %2 3 %

9 %7 %

-1 0 %

7 %

Extremely likely

Very likely

Fairly likely

Fairly unlikely

Not very likely

Not at all likely

• Overall 53% of SMEs and 60% of Corporates say they would be likely to switch to a single provider if they got a discount of 10% on mobile and fixed line calls.

• This is quite a bit higher than the number who say they would switch for a 15% discount for fixed line services only (40% (see slide 16) ), suggesting that discounts on mobile calls would be a stronger draw than fixed line calls.

Don’t know

Mean:

SME Corporate

3.6 3.9

New

Base: All Respondents (n=550)

Internet & Broadband Communications


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37Internet Access

• All Corporates are connected to the Internet this wave and 87% of SMEs are online (compared to 78% in Wave 1).

• Lack of access is most evident among companies with less than 10 employees and similar to Wave 1, those operating in the retail sector.

Q. Is your company connected to the Internet?

NoYes

Base: All respondents( n=550)

13%

87%100%

-0%

20%

40%

60%

80%

100%

SMEs Corporate


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38

• Lack of perceived need appears to be the main barrier to going online.

• Given that many of those who do not have an Internet connection are based in the wholesale and retail sectors it is not entirely surprising that many can continue to conduct business without it.

• Expense does not appear to be a major factor at all.

Q. Why is your company not connected to the internet?

Barriers to Internet Connection

SME

%

Have no need 54

Too expensive 6

Company too small 14

Do not trust it 5

Not appropriate for our business 22

Other 3

Don’t know 8

New

Base: All companies not connected to internet (n=63)


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39Internet Supplier Used

eircom

Other

SMEs Corporates

66

34

61

39

Q. What internet supplier does your company use for connecting to the internet

Base: All businesses with Internet access (n=487)

Total

66

34

Wave 1%

Wave 2%

Wave 1%

Wave 2%

Wave 1%

Wave 2%

69

31

72

28

46

54

• Overall eircom appears to be retaining its ISP market share.

• Other providers appear to be performing better in the Corporate market than the SME market.

• Use of other providers is most evident among companies with 50+ employees, those operating in the financial services sector, Dublin based companies and those with broadband access.


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40Type of Internet Connection Used

Q. What type of internet connection does your company use?

DSL connection

Dial-up

ISDN line

Satellite

Wireless broadband

Dedicated leased line

Other

Don’t know

49

27

15

1

4

3

1

4

51

2

8

-

2

22

2

14

SMEs Corporates


Wave 1%

Wave 2%

Wave 1%

Wave 2%

57

24

13

2

3

1

2

4

67

6

13

6

13

2

8

6

• Growth in broadband up-take continues with over half of all businesses surveyed using a DSL connection. Growth has been particularly high in the Corporate sector.

• Use of a DSL connection is at 77% among those businesses operating in financial services.

• Thirty-two percent of companies with less than 10 employees are still relying on a dial-up service. They are most likely to be operating in the hotel/restaurant sector.


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41

• Perceived lack of availability of broadband appears to be the main barrier to upgrading from dial-up or an ISDN line.

• Closer analysis of the findings suggest that some of those who responded that broadband services were unavailable to them, were simply not aware if broadband was available to them or not.

• Lack of perceived utility or business relevance also appear to be significant barriers.

• The sample of Corporate respondents was too small (6) to allow charting or any analysis.

Q. What are the main reasons your company uses an ISDN line or regular dial-up for connecting to the Internet rather than Broadband?

Main Reasons for not using Broadband

SME%

Broadband is currently not available to our business 47

The internet is not an important tool for our business 16

It is the most suitable package for my needs 10

It is the most cost effective way of accessing the internet 8

I have not considered moving to a broadband service 7

I am not sure about the options for broadband services 5

These services are not compatible with the technology used for our business 1

Other 5

Don’t know 8

New

Base: All SME companies using ISDN or dial-up (n=154)


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42Broadband Access

Q. Are any of the following broadband services available in your area?

Base: All with ISDN or dial-up (n = 160)

• Among those relying on dial-up or ISDN, 40% believe they could access some form of a broadband connection.

• This figure rises to 60% among those in Dublin and falls to 28% among those in Connaught/Ulster.

• Closer analysis of the findings suggest that some of those who responded that none of the broadband services were available to them, were simply not aware if broadband was available to them or not.

• The low level of awareness suggests that some businesses would benefit from more direct marketing as their interest in getting broadband is high but they believe they can’t access it.

%

DSL Lines 19

Satellite 17

Wireless Broadband 27

Leased Lines 9

Any broadband connection 40

Don’t Know 33

None of the above 28


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43Likelihood of Getting Broadband Were it Available

Q. If broadband was available in your area, how likelywould your company be to get a broadband connection?

28% 31%

20% 12%

4%7%3%

10%5%7%

34%34%

5%

Extremely likely (6)

Very likely

Fairly likely

Fairly unlikelyNot very likelyNot at all likely (1)

SMEs

Mean 4.5

Base: All businesses using dial-up and ISDN and those who do not use the Internet at all, who do not have access to broadband (n=83), (n=96)

4.7

Wave 1 Wave 2• The level of interest in getting

broadband among those who currently believe that it is not available in their area is fairly unchanged from last wave.

• On a regional basis, interest was highest among those based in Munster.

• The number of Corporate respondents (2) is too low to allow for separate analysis.

Don’t know


Millward Brown IMS

44Likelihood of Connecting to Broadband

Q. How likely is your company to get abroadband connection in the next 12 months?

Base: All SME companies with Internet access and access to broadband,

not currently using broadband (n=182), (n=60)

12%

22%15%

15%8%

13%

10%28%

13%

5% 5%

22%14%

18%

Extremely likely

Very likely

Fairly likely

Fairly unlikely

Not very likely

Not at all likely

Don’t know

Mean: 3.0

SMEsWave 1

%Wave 2

%

3.9

• Interest in getting broadband is higher among those who don’t currently have access to it compared to those who already have access but have chosen not to opt for it.

• However, interest has risen since Wave 1 and appears to be especially strong in Leinster (excluding Dublin).

• The number of Corporate respondents (4) is too low to allow for separate analysis.


Millward Brown IMS

45

• Of those using ISDN or dial-up the vast majority overall (89%) had their connection installed at least 12 months ago.

• For most SMEs (77%) it was their first Internet connection. For the small number who were replacing a previous connection, most (81%) were replacing a regular dial-up connection for an ISDN line.

• The sample of Corporate respondents was too small (6) to allow charting or any analysis.

Q. Is this Internet connection the first Internet connection yourcompany got or a replacement for a previous Internet connection?

A first internet connection for your company A replacement for a previous internet connection

Replacement or First Connection

5%

77%

19%

0%

20%

40%

60%

80%

100%

SMEs

New

Base: All SMEs using ISDN or dial-up (n=154)

A don’t know


Millward Brown IMS

46

• Time-savings appear to be the main business benefit associated with broadband usage. This is equally felt among SMEs and Corporates.

• Greater efficiency in customer communications is also a significant benefit particularly among SMEs.

• It is interesting to note that distribution of responses does not differ significantly between those currently using broadband and those not.

Q. What do you consider to be the key business benefits of using broadband?

Key Business Benefits of Broadband

SMEs%

Corporates%

Time-savings 54 51

More efficient communicationswith customers 25 10

Productivity improvements 13 6

Cost savings 12 9

More efficient internal communications 9 3

Increased revenue 1 -

Homeworking 1 4

Increased customer satisfaction 3 -

Other 3 6

Don’t Know 11 10

New

Base: All businesses with internet access (n=487)


Millward Brown IMS

47Awareness of VoIP

Q. Have you heard of a service calledVoice Over IP also known as ‘VoIP’?

• Awareness of VoIP seems to be rising. Almost half of all SMEs and just over eight in ten Corporates are aware of it.

• Awareness continues to be least evident among companies with less than 10 employees.

• On an industry basis, similar to Wave 1, awareness was lowest among those in the hotel and restaurant sectors. 1%

66%54%

22% 19%

34%46%

78% 81%

---0%

20%

40%

60%

80%

100%


Don't knowNoYes

Base: All businesses with Internet access (n=437), (n=487)

SME Corporates


Millward Brown IMS

48Approaches by VoIP Providers

Q. Have you been approached by aService Provider offering such a service?

• Some of the increase in awareness is likely to be driven by approaches by VoIP providers.

• There seems to be more VoIP marketing activity particularly targeted at Corporates.

• Those operating in financial services are most likely to have been approached.

2% 2% 8% 2%

89% 86%

51%

44%

8% 12%

41%54%

0%

20%

40%

60%

80%

100%


Don't knowNoYes

Base: All businesses with Internet access (n=437),(n=487)

SME Corporates


Millward Brown IMS

49Usage of VoIP

Q. Is your company currently usingVoice over IP (or VoIP) services?


• On an overall basis the findings indicate that about 3% of SMEs and 32% of Corporates are using VoIP.

• Of those using VoIP, about a third claim to be using it through eircom.

• The sample size of users is too small to allow for any in-depth profiling. 2 % 3 %

3 2 %

1 4 %

0 %

2 0 %

4 0 %

6 0 %

8 0 %

1 0 0 %

S M E s C o r p o r a t e s

W a v e 1 W a v e 2


Millward Brown IMS

50

Q. How would a one day breakdown of the following services in your company affect yourbusiness on a scale of 1-10 where 1 means not at all critical, and 10 means extremely critical?

1 6 %2 7 %

1 8 %3 0 %

2 2 %

2 4 %2 5 %

3 4 % 5 7 % 3 5 %4 5 %

6 0 % 6 4 %

3 8 %2 5 %

3 5 % 3 3 %

1 2 %0 %

2 0 %

4 0 %

6 0 %

8 0 %

1 0 0 %

S M E s C o r p o r a t e S M E s C o r p o r a t e S M E s C o r p o r a t e

4-7 Quite critical8-10 Very critical

Impact of Loss of Services

Fixed Line Service

New


Mobile Service* Internet Service^

1-3 Not very critical

*Base: All businesses with company mobiles (n=451)

^Base: All businesses with Internet access (n=487)

• Loss of fixed line services would be considered more critical than loss of mobile or Internet services.

• Businesses are generally likely to rely on fixed lines as the main customer communications channel, as such any loss of service would be severely felt by most .

Conclusions


Millward Brown IMS

52Conclusions - I

• While fixed line switching activity has increased over the last few years, it is still relatively limited given the high number of providers offering what appear to be discounted fixed line services.

• The research suggests that perhaps there is disappointment among some businesses when they do switch – either the cost savings promised are not delivered or maybe service delivery is not at a level expected – as about half end up returning to their original supplier.

• It could also suggest that the original supplier is fairly successful at luring departed customers back.

• Inertia also continues to be a defining characteristic of business behaviour. Many even when prompted with a 15% discount would prefer to avoid the hassle of switching.


Millward Brown IMS

53Conclusions - II

• Contracts with mobile service providers do not appear to be a major barrier to switching provider. Many businesses could be on contracts where the initial contract period has expired or perhaps they feel the contract would be easy to over-ride.

• Use of mobile data and 3G services has remained relatively muted. While those that do use them value them, there does appear to be a real lack of understanding and awareness among much of the business community about the real business benefits behind using these services and devices.

• Mobile service offerings seemed to have moved at a faster pace than the business community has called for. Greater learning and education will be required to develop real momentum in this market.

• Interest in using a single provider for both fixed and mobile services is high. It is clear that many companies would prefer to have a single point of contact and the convenience of a single bill. If choosing a single provider, the cost of mobile calls rather than the cost of fixed line calls is likely to be the bigger draw.


Millward Brown IMS

54Conclusions - III

• There has been a strong increase in broadband usage this wave among both SMEs and Corporates.

• While the level of interest in getting broadband is high among those currently using ISDN or dial-up, there does appear to be a lack of awareness about its availability with a sizeable number claiming that it is not available in areas where it is. This would suggest that some businesses would benefit from more direct marketing or awareness raising activity.

• Time-savings (and by default increased productivity and efficiency) is the key business benefit associated with broadband.

• Awareness and usage of VoIP appears to be on the increase. For a relatively new technology, awareness of it is high.

• Despite all the technological advances and new services offered over the last decade, fixed line services continue to be absolutely fundamental to business operations. A breakdown in fixed line services would be considered more damaging to businesses than a loss in mobile or Internet services. Fixed lines continue to be the main customer communications channel, and any loss of service would be detrimental to the majority of Irish companies.

Appendix: Sample Details


Millward Brown IMS

56Sample Profile: Location of Business

Q. What region is your workplace in?


SMEs Corporates

29

25

5

3

3

15

4

10

6

38

16

12

-

2

24

-

4

4

Dublin City

Rest of Leinster

Cork City

Waterford City

Limerick City

Rest of Munster

Galway City

Rest of Connaught

Rest of Ulster

Wave 1%

Wave 2%

Wave 1%

Wave 2%

30

20

9

1

4

19

3

9

4

42

14

2

-

2

17

2

12

9


Millward Brown IMS

57Sample Profile: Location of Premises

Q. Is your company located in….


SMEs%

Corporates%

39

20

20

17

3

In a large town or city

A small or mid-sized town

A rural area or village

A business park in urban area

A business park in a rural area

46

15

5

27

4

40

20

19

18

3

Total%


Millward Brown IMS

58Sample Profile: Type of Company

Q. Is your company?

89

3

6

1

1

*

40

8

30

10

10

-

An Irish owned – private company

An Irish owned – public company

A Subsidiary of overseas company

A Semi-State body

A Government department

Other


SMEs Corporates

Wave 1%

Wave 2%

Wave 1%

Wave 2%

86

3

3

2

2

3

35

3

30

10

18

2


Millward Brown IMS

59Sample Profile: Position in Company

Q. What is your own position in the company?

IT Manager /IT Director

CEO/Managing Director/ Owner Manager Telecommunications Director/Telecommunications Manager Finance Director/ Finance Manager

Other Director/Manager

Other

Refused

Administration

7

45

1

8

23

10

5

1

46

2

4

8

26

10

4

-


SMEs Corporates

Wave 1%

Wave 2%

Wave 1%

Wave 2%

11

36

2

11

24

9

7

1

46

-

11

9

12

4

19

-


Millward Brown IMS

60Main Fixed Line Supplier


8 0

9

2

2

2

2

1

-

-

-

-

4

2

TotalWave 2

%

Eircom

BT Ireland

Access

Euphony

Smart Telecom

WorldCom (MCI)

NewTel

Pure Telecom

Cinergi/Speedial

NTL Business/NTL

Perlico

Other

Don’t know/refused

Q. Which fixed line phone services provider does your company use for its voice call?

79

6

3

4

2

2

1

1

1

1

*

5

1

82

8

8

2

-

4

-

2

-

-

2

-

-

Wave 1%

SME Corporates

Wave 2%

Wave 1%

Wave 2%

80

8

2

2

2

1

*

2

*

*

-

5

2

77

14

2

-

2

-

-

-

-

2

-

2

2


Millward Brown IMS

61Internet Supplier Used

eircom BT Ireland (Esat BT)

Leap Broadband

Irish Broadband

DigiWeb

NTL

MCI (Worldcom)

Net Source Smart Telecom

UTV Internet

Other

SMEs Corporates

Don’t know

666

1

4

1

1

1

11

1

66

6116

-

2

-

-

2

2-

-

104

Q. What internet supplier does yourcompany use for connecting to the internet

IOL

Indigo

Oceanfree.netGallileo

2

1

11

-

-

--


Total

66732

1

1

1

1

11

1

1

00

76

Wave 1%

Wave 2%

Wave 1%

Wave 2%

Wave 1%

Wave 2%

69741*11*11****

96

72641*11*11****

75

46124-2----2----

268

IFA Telecom - -- * * -Perlico - -- * * -

For additional information please contact:

Millward Brown IMS

19-21 Upper Pembroke Street

Dublin 2

Tel: +353 1 676 1196

Date post:	07-Nov-2014
Category:	Business
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