Gadgets more important than eating out?

Ofcom’s latest research into the gadgets and communications’ has uncovered just how addicted the UK  public are to their mobile phones and internet connections. In its sixth report on the subject research turned up the astonishing statistic that 47% of those asked would stop eating out rather than ditch their technology.

Here is the full press release and links to the report.

The recession is failing to dent our love of communications, with UK consumers spending more time than ever before watching TV, using their mobile phone and surfing the internet.

But we are taking more control over how we use our communications, as well as seeking out and getting good deals in the downturn.

Ofcom’s sixth Communications Market Report into the £52 billion TV, radio, broadband, telecoms and mobile industries reveals just how important these services remain to consumers despite the recession.

When asked which items they were likely to cut back on, 47 per cent would choose to cut back on going out for dinner, 41 per cent on DIY and 41 per cent on holidays.

This compares with only a fifth (19 per cent) who would cut back on mobile phone spend, 16 per cent on TV subscriptions and 10 per cent on their broadband services.

More use, less money

And while we’re continuing to spend more time using our communications services, we are paying less for them.

In May this year UK consumers spent an average of 25 minutes a day online at home – up from 9 minutes in 2004.

But average household spend on internet services fell in real terms from £11.37 in 2007 to £10.71 in 2008.

The report also shows that consumers are seeking opportunities to save money.

Nearly half (46 per cent) were taking a bundle of services – two or more services from one operator – during the first quarter of 2009. That’s up from 39 per cent twelve months previously.

Seeking cheaper deals

People are also looking for good deals and securing value for money.

Nearly one in two (47 per cent) said that they are now more likely to take a bundle of services than they were twelve months ago.

And around a quarter of consumers are more prepared to shop around for an improved mobile phone service and broadband provider than they were a year ago.

Our research also reveals that TV viewers are taking even more control over their TV schedules, choosing how, when and where to watch programmes either through a digital video recorder (DVR) or catch-up services on TV and online.

By the end of March this year more than a quarter of UK homes (27 per cent) had a DVR – an increase of 29 per cent since September 2008.

VoIP increase

Overall take up of broadband reached 68 per cent of households by the end of March 2009 – up from 58 per cent last year – and many more consumers are taking up mobile broadband.

There were more than a quarter of a million new mobile broadband connections in May alone, up from 139,000 new connections in May 2008.

And there has also been a surge in the number of people making phone calls via the internet.

Our research found that some 21 per cent of internet users had used a VoIP service in 2008,  compared with 14 per cent in 2007.

Bundles

Peter Phillips, Ofcom Partner, Strategy & Market Developments said: ‘Despite the recession, people are spending more time watching TV, using their mobile phone or accessing the internet.

‘They would rather do without meals out or holidays than give up their phone, broadband or pay TV package.

‘Meanwhile, we are becoming more canny about the way we pay for these services.  Almost half of us economise by taking a bundle of communications services from a single supplier, while one fifth opt for cheaper mobile contracts which don’t include an expensive new phone.

‘As well as getting better deals we are demanding more control.

‘Over 25 per cent of households now use a digital TV recorder to watch programmes at a time that suits us, and 23 per cent use online catch up services like the BBC iPlayer. One in eight households has a mobile broadband connection allowing them to use the internet on the move.’

Nations and Regions reports

Ofcom has also also published separate Communications Market Reports for the UK’s Nations and Regions.

You can read more about these by clicking on the links below.

Communications Market Report – Northern Ireland

Communications Market Report – Scotland

Communications Market Reports – Wales

Broadcasting

More TV viewers are now choosing how, when and where to watch programmes.

Our research shows that by the end of March this year more than a quarter of UK homes (27 per cent) had a DVR – an increase of 29 per cent since September 2008.

Around 9 million DVRs have been sold in the UK, with the majority being Sky+ boxes (over 5 million).

In DVR homes, 15 per cent of TV viewing was timeshifted in 2008.

Better TV experience

Around a fifth (19 per cent) of viewing in Sky+ homes is timeshifted, more than for subscribers to Virgin Media’s V+ service who timeshifted 12 per cent of viewing.

Some 9 per cent of viewing in Freeview DVR homes was time-shifted programmes.

Our research also suggests that DVR owners enjoy a better TV experience.

Some 8 out of 10 TV viewers with a DVR say that they watched more programmes that

they enjoy and over 40 per cent said that they watched a greater variety of programmes since getting a DVR.

Online TV

As broadband speeds increase and services become more widespread, TV viewers are also catching-up on programmes online.

Nearly a quarter of households were watching catch-up TV online in 2008, compared to 17 per cent in 2007.

Online catch-up TV has been driven significantly by the BBC iPlayer – with 15 per cent of internet users now watching the service, double the figure this time last year. ITV’s catch-up service was next at 3.3 per cent.

And more than three quarters of TV viewers (78 per cent) said that they enjoy programmes more because they had access to a catch-up service.

Radio

By the end of the first quarter in 2009, a fifth of all radio listening hours was on digital radio, up from 17.8 per cent on the year.

Nearly a third of adults (32 per cent) had access to a DAB radio (up from 27 per cent in twelve months) or had listened to the radio online (33 per cent, up from 29 per cent on the year).

A total of 9 million DAB sets were sold by the first quarter of 2009, up from 7 million in 2008.

Broadband

By the end of March 2009, 68 per cent of UK homes had a broadband connection  – up from 58 per cent the previous year.

And many more consumers are also signing up for  mobile broadband deals.

In May of this year alone there were more than a quarter of a million new mobile broadband connections, up from 139,000 new connections in May 2008.

But that doesn’t mean people are giving up on broadband through a landline.

Mobile broadband

While more than 1 in 10 households now have a mobile broadband connection, three quarters of these also have access to broadband through their landline.

This suggests that many consumers are using mobile broadband to complement their landline connection rather than replace it.

In addition to this some 8 million people in the UK had accessed the internet on their mobile phone in the first quarter of this year, an increase of more than 40 per cent on the previous year.

Younger people are both more likely to use mobile broadband and to have it as their only internet connection.

Age differences

Around one in six 16-34 year olds live in a household with a mobile broadband connection, and one in three of these do not also have a landline broadband connection.

But fewer than one in ten over-55s has a mobile broadband connection and only one in ten of these do not also have a landline broadband connection.

In the over-65 group, less than one per cent surveyed relied solely on a mobile broadband connection.

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Mobile phones

While there are a record number of mobile phone subscriptions in the UK, we are changing the kind of deals we’re looking for.

For example, since September 2008 a fifth of all mobile phone contracts have been SIM-only deals.

When you sign up to one of these deals you’re given a SIM card that can be used in a handset you already own.

SIM-only contracts typically offer lower monthly fees and also give consumers greater flexibility as they often only require a one-month commitment.

Contracts

Around a quarter of new mobile contracts in the first three months of 2009 were for one month only.

Our research also found that some 70 per cent of mobile phone users would keep their existing handset rather than upgrade to a new one, in order to save money on bills.

However, 24-month contracts are also becoming increasingly popular as consumers commit to longer periods in return for lower monthly fees and inclusive, or heavily discounted, handsets.

In the first quarter of 2009, more than one in ten new mobile contracts (13 per cent) were for a 24-month period.

Mobile only

A similar number of UK homes have also got rid of landlines altogether in favour of their mobile phones.

Of the cities we surveyed, Cardiff came out on top as the mobile-only capital of the UK with 29 per cent of mobile-only households.

In England, Leicester had the highest take up of mobile only households at 25 per cent, while 27 per cent of Glaswegian households and 24 per cent of Belfast households were mobile only.