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UK: consumers prefer to cut back on dining out than buying broadband, mobile telephony

[Reuters] Britain’s recession-hit consumers would rather cut back on eating out and holidays than give up their broadband, mobile phone and pay-TV services, according to a new report from media regulator Ofcom.

Customers are looking to save money on communications and media deals but are still willing to pay up for services that enhance the experience, such as digital video recorders and mobile broadband.

Britons are shopping around more, signing long-term contracts in exchange for cheaper payments, and bundling services such as TV, phone and telephony, Ofcom’s Communications Market Report said.

“Despite the recession, people are spending more time watching TV, using their mobile phone or accessing the Internet,” said Ofcom partner Peter Phillips.

“Meanwhile, we are becoming more canny about the way we pay for these services (and) as well as getting better deals we are demanding more control.”

In the first quarter of 2009, 46 percent of consumers took a bundle with two or more services from one operator, such as pay TV groups BSkyB and Virgin Media, up from 39 percent a year earlier.

For mobile phones, some 70 percent of users said they would rather retain their existing handset than upgrade if it meant a cheaper deal.

But the report showed that despite the pressure on spending, consumers were still prepared to pay for services that enhanced the experience, such as digital video recorders, high definition television and mobile broadband.

According to the report, more than a quarter of UK homes had a digital video recorder, while consumers with faster broadband access were also catching up on programs via online catch-up sites.

More than 2 million households had access to a high definition service, according to the report, and 17.6 million HD-ready sets, in nearly 9 million households, have been sold in the UK.

Almost 70 percent of homes took broadband by the end of the first quarter of 2009, up from 58 percent a year ago, while more than one in 10 households had access to mobile broadband.

Of those taking mobile broadband, three quarters also had access to fixed-line broadband, showing the two services can complement each other.

While online, some 19 million Internet users visit Facebook, spending an average of nearly 6 hours per month on the site, although those in the 15 to 24 age group were spending less time on social networking sites in general, down from 55 per cent in the first quarter of 2008 to 50 per cent in 2009.

There were 2.6 million Twitter users by May 2009 — up from 0.1 million on the previous year.

Britons willing to pay for enhanced media services

UK: leading retailer Tesco has launched a STG 30 per month SIM-only service with unlimited minutes, texts and browsing

[emediawire] Tesco Mobile has unveiled a brand new credit crunch-beating unlimited tariff, allowing people to talk and text as much as they want without worrying about their monthly phone bills.

The SIM only, pay monthly deal gives people unlimited minutes, texts and browsing for just £30 a month. With everyone watching their wallets, people need not worry about going over their free minutes and getting a large, unexpected bill at the end of the month.

Research from Tesco Mobile showed that in the current financial climate, worry over the cost of monthly phone bills has led to people spending less time on the phone to friends and relatives.

59% of Brits said they would spend more time on their mobiles if they had unlimited minutes and over half of all respondents (52%) claimed they had friends or relatives who cut short phone calls to keep costs down. Nearly half admitted doing this themselves (49%) despite it being voted one of the most annoying breaches of ‘mobile phone etiquette’.

With over 85% of the population now owning a mobile phone, mobile use has developed its own ‘rules’ for behaviour. Asked to name the most unacceptable and annoying mobile phone habits, the majority of people surveyed cited habits such as calling someone and then hanging up so they have to return the call, texting people to ask them to call back and not picking up voicemails to save money as the most irritating.

Lance Batchelor, Chief Executive Officer of Tesco Mobile and Tesco Telecoms said: “Ours is the only pay monthly deal that gives consumers truly unlimited calling and texting. You don’t have to choose if you’re a chatterbox or a texter, you can use your mobile as much as you want without having to worry about the cost.

“We believe that this will change the way people use their mobile phones. The new tariff aims to give people a simple, guaranteed way to have unlimited calls, texts and browsing. It takes away the concern and uncertainty about your monthly bill as it’s fixed at £30, meaning you can talk, text and browse freely, and avoid the annoying habits revealed by our research.”

Notes:

Unlimited tariff is subject to a fair use limit of £500
Research undertaken by YouGov for Tesco Mobile, July 2009

Tesco Mobile Gets People Talking with Unlimited Mobile Deal
see also Tesco Mobile network

ASEAN: consumers seeking to improve the performance of ISPs and mobile operators

[bangkokpost] Consumer groups are pledging a new Southeast Asia-wide battle against unfair business practices by telecom giants.

The activists, led by a non-profit consumer network, the Southeast Asian Consumer Council (SEA-CC), wants to force governments to improve access to internet and mobile phone services.

They were speaking at the close of a three-day conference held in parallel with the annual meeting of Asean telecommunications regulators here.

“Telecommunications is a transnational issue important enough for regulators to hold such an annual meeting, which is always well attended by business,” said Jiraporn Limpananont, SEA-CC’s chairwoman.

Regional cooperation among activists was vital for getting consumers a better deal, she said. The meeting drew more than 50 consumer advocates from eight countries – Thailand, Indonesia, the Philippines, Malaysia, Singapore, Hong Kong, Australia and Spain. They found consumers have many problems in common.

These include billing inaccuracies, unfair charges, spam messages via mobile phones and spam emails, and difficulties in settling disputes.

Consumers, especially those in developing nations, have been offered poor quality services such as limited network coverage, calls which fall off the network, and slow delivery of messages.

Indah Suksmaningsih, of the Indonesian Consumers’ Organisation, said consumers were also forced to receive unwanted marketing messages from operators and other businesses.

Saree Aongsomwang, secretary-general of Thailand’s Foundation for Consumers, said activists would work together to demand basic standards in telecommunications services for the region.

“We’ll demand businesses, especially international ones, offer customers in Asean countries the same standard that consumers in developed countries get, and to be more socially responsible,” she said.

Consumers could lose out when Asean free trade agreements come into effect early next year, said Seah Seng Choon of Singapore.

“Whole markets in certain areas including e-commerce will open as a result of the change, and businesses will be able to do whatever they want without barriers,” he said.

Fight looms with telecoms giants over unfair trade

Europe: Agreement of the Council of Ministers to the use of 900 MHz for UMTS as an alternative to GSM, as technology neutrality

[ec] Europe took an important step towards a new generation of mobile services today. The Council of Ministers followed the European Parliament in approving a proposal from the European Commission to modernise European legislation – the so-called GSM Directive – on the use of the radio spectrum needed for mobile services. The GSM Directive of 1987 reserves the use of part of the 900MHz spectrum band to GSM (Global System for Mobile or originally Groupe Spécial Mobile) access technologies such as mobile phones. The updated Directive now allows the 900 MHz frequency band to be used to provide faster, pan-European services such as mobile internet while ensuring the continuation of GSM services. This new flexibility will foster stronger competition on Europe’s telecoms market and contribute to a more rapid and more widespread roll-out of wireless broadband services, one of the drivers of economic recovery. Industry savings of up to € 1.6 billion are expected from the reform of the GSM Directive. The renewed Directive will enter into force this October. The Commission had proposed the reform of the GSM Directive in parallel to the reform of the EU Telecoms Rules. The reformed GSM Directive is the first of several important Directives in the telecoms sector being negotiated where the agreement of Parliament and Council now paves the way for a stronger wireless economy.

EU frees new spectrum for new and faster mobile services

France: while everyone has a mobile phone, some citizens are using the courts to move masts further away from their schools

[bbc] The mobile phone has become indispensable to modern life. But some communities in France believe they are paying too high a price for this convenience.

The infrastructure that allows mobile phones to work is continuing to spread and change the world’s landscape.

But a storm is brewing in France over the location of mobile phone masts, with French courts ordering a number to be moved.

Residents living near them have health concerns, but scientists cannot agree if the technology has an impact on not.

Locals in the town of Brindas, in the south-east of France, voiced their opposition after a base station was put up in the middle of the village’s schools.

French mobile mast debate raging