SME

1
SME Corporate ICT Research Wave 2 2005

• Presentation of Findings

December, 2005
41103420/2 BMC/PM
2
Presentation Outline

• Introduction
• Research Objectives
• Methodology
• Sample profile
• Research Findings
• Fixed line market
• Mobile market
• Internet and broadband communications
• Conclusions
• Appendix Sample Details

3
Introduction
4
Research 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.

5
Methodology

• 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.

6
Sample 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.

7
Sample Profile Number of Employees
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.
SMEs
Corporates
2004(353)
2005 W1 (500)
2005 W2 (500)
2004(50)
2005 W1 (50)
2005 W2 (50)
100-299
100-299
101-299
1-10
1-9
1-9
11-40
10-49
10-49
300
300
300
41-99
51-99
51-99

• Base All respondents (n550)

8
Sample Profile Industry Sector
SMEs
Corporates
Wave 1 (500)
Wave 1(50)
Wave 2 (500)
Wave 2(50)
Agriculture / Forestry / Fishing
-
2
2
2
4
4
Mining
9
9
16
18
Manufacturing
11
11
4
Transport
5
4
2
4
Recycling/utilities/water
1
1
2
10
Wholesale
11
10
10
8
6
2
Retail
15
15
11
12
Hotels/restaurants
12
13
Finance
4
4
32
32
Services
30
29
11
10
Government
1
1
Base All respondents (n550)
9
Research Findings
10
Fixed Line Market
11
Main Fixed Line Supplier
Q. Which fixed line phone services provider does
your company use for its voice calls?
Corporates
SMEs
Total Wave 2
Wave 1
Wave 2
Wave 1
Wave 2
71
74
Eircom only
Eircom and others
8
8
Others only
21
18

• 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).

Base All respondents (n550)
12
Switching Activity
New
Q. Have you ever switched supplier for any of
your fixed line services?

• 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.

Base All respondents (n550)
13
Satisfaction with Switching Process
New
Q. Were you satisfied with the process of
switching supplier?

• 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.

Base All who have switched (n255)
14
Satisfaction with new Supplier
New
Q. Were you satisfied with the supplier you
switched to?

• 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.

Base All who have switched (n255)
15
Extent of Switching Back
New
Q. Did you switch back to your original supplier?

• 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.

Base All who have switched (n255)
16
Likelihood of Switching for 15 Reduction
New
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?

• 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.

Switch
Stay with current
Don't know
Base All respondents (n550)
17
Minimum Percentage Needed to Encourage Switching
New
Q. What is the absolute minimum percentage
reduction on your fixed line bill,which would
encourage you to definitely switch to another
line provider?

• 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.

• Average
• SME 18
• Corporate 16

Corporate
SME
Base All respondents (n550)
18
Average Fixed Line Spend
New
Q. What is your companys average monthly bill
for fixed line voice services?

• 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.

Base All respondents (n550)
19
Change in Fixed Line Spend
New
Q. Would you say that your monthly spend on
fixed voice telephony serviceshas increased,
decreased or stayed the same over the last 12
months?

• 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.

Increased
Decreased
Don't know
Stayed the same
Base All respondents (n550)
20
Reasons for Increased Fixed Line Spend
New
Q. Do you think this increase is due to

• 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.

Higher prices for fixed line services
Increased usage of fixed line services by
employees Combination of both higher prices and
increased usage
Dont Know
Base All who believe their spend has increased
(n155)
21
Mobile Market
22
Mobile Phone Market Share
Q. What company supplies your mobile telephone
calls?

• 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).

SME
Corporates
Vodafone
O2
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
Meteor
Don't know
No company mobile
Base All respondents (n550)
23
Payment of Business Mobile Calls
New
Q. How are business mobile calls made by
employees paid for by the company?

• 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.

Base All respondents (n550)
24
Average Mobile Spend
New
Q. What is your companys average monthly spend
on mobile phone services?

• 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.

Base All with company mobile phones/All who pay
mobile phone bills (n451)
25
Changes in Mobile Spend
New
Q. Would you say that your companys monthly
spend on mobile phoneservices has increased,
decreased or stayed the same over the last 12
months?

• 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.

Increased
Decreased
Don't know
Stayed the same
Base All with company mobiles (n451)
26
Reasons for Increase in Mobile Spend
New
Q. Do you think this increase is due to

• 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.

Higher prices for mobile services
Increased usage of mobile services by employees
or a combination of both higher prices and
increased usage
Base All who feel their mobile spend has
increased (n169) NOTE SMALL BASE OF CORPORATES
(n23)
27
Mobile Contracts
New
Q. Are you currently committed to a contract
with your mobile phone service provider?

• 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).

No
Yes
Dont know
Base All with company mobiles (n451)
28
Contracts a Barrier to Switching
New
Q. Is this contract a major barrier to switching
to another provider?

• 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.

No
Yes
Dont know
Base All with company mobiles and committed to a
contract (n244) NOTE SMALL BASE OF CORPORATES
(n28)
29
Mobile Data Services Provided

• 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.

Q. Does your company provide any of its
employeeswith any of the following mobile Data
Services?
SME
Corporates
SMS (Text) messaging
61
79
15
15
MMS (Picture) messaging
15
53
Mobile Email (Using a Blackberry or PDA)
11
33
Information download over a mobile (GPRS)
1
2
Other
35
14
None
Base All with company mobiles (n451)
30
Usefulness of Data Services
New
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?

• 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.

8-10 Very useful
4-7 Quite useful
1-3 Not very useful
Base All who use mobile data services (n302)
31
Awareness of 3G Services
New
Q. Are you aware of 3G or third generation
mobile phone services?

• 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.

No
Yes
Base All with company mobiles (n451)
32
Mobile Phone Services Provided
Q. Does your company currently provide any of
the followingmobile phone services to any of its
employees?

• 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.

SMEs
Corporates
7
19
3G handsets
6
42
3G Data Cards
10
33
GPRS or 2.5G handsets
8
26
Wireless LAN cards
76
39
None of these
4
-
Dont know
Base All with company mobiles and aware of 3G
(n341)
33
Likelihood of Providing 3G Handsets
New
Q. How likely is your company to start providing
3G handsetsor data cards to any of its employees
within the next 12 months?
SME
Corporate

• 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.

Extremely likely (6)
Very likely (5)
Fairly likely (4)
Fairly unlikely (3)
Not very likely (2)
Not at all likely (1)
Dont know
Mean
1.8
1.8
Base All companies who are aware of 3G services
but not currently providing any to its employees
(n258) NOTE SMALL BASE OF CORPORATES (N17)
34
Preference for a Single Provider
New
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?

• 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.

No
Yes
Don't know
Base All companies with mobile phones (n451)
Base All Respondents (n550)
35
Likelihood of Switching for a Single Provider
New
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?
SME
Corporate

• 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.

Extremely likely
Very likely
Fairly likely
Fairly unlikely
Not very likely
Not at all likely
Dont know
Mean
3.6
3.9
Base All Respondents (n550)
36
Internet Broadband Communications
37
Internet Access
Q. Is your company connected to the Internet?

• 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.

No
Yes
Base All respondents( n550)
38
Barriers to Internet Connection
New
Q. Why is your company not connected to the
internet?

• 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.

Base All companies not connected to internet
(n63)
39
Internet Supplier Used
Q. What internet supplier does your company use
for connecting to the internet
SMEs
Total
Corporates
Wave 1
Wave 2
Wave 1
Wave 2
Wave 1
Wave 2
eircom
66
61
66
69
72
46
34
39
34
31
28
54
Other

• 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.

Base All businesses with Internet access (n487)
40
Type of Internet Connection Used

• 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.

Q. What type of internet connection does your
company use?
SMEs
Corporates
Wave 1
Wave 2
Wave 1
Wave 2
DSL connection
49
51
57
67
Dial-up
27
2
24
6
ISDN line
15
8
13
13
Wireless broadband
4
2
2
6
Dedicated leased line
3
22
3
13
Satellite
1
-
1
2
Other
1
2
2
8
Dont know
4
14
4
6
Base All businesses with Internet access (n487)
41
Main Reasons for not using Broadband
New

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

• 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.

Base All SME companies using ISDN or dial-up
(n154)
42
Broadband Access

• 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 cant access it.

Q. Are any of the following broadband services
available in your area?
Base All with ISDN or dial-up (n 160)
43
Likelihood of Getting Broadband Were it Available
Q. If broadband was available in your area, how
likelywould your company be to get a broadband
connection?
SMEs
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.

Extremely likely (6)
Very likely
Fairly likely
Fairly unlikely
Not very likely
Not at all likely (1)
Dont know
Mean
4.5
4.7
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 (n83), (n96)
44
Likelihood of Connecting to Broadband
Q. How likely is your company to get abroadband
connection in the next 12 months?
SMEs
Wave 1
Wave 2

• Interest in getting broadband is higher among
  those who dont 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.

Extremely likely
Very likely
Fairly likely
Fairly unlikely
Not very likely
Not at all likely
Dont know
Mean
3.0
3.9
Base All SME companies with Internet access and
access to broadband, not currently using
broadband (n182), (n60)
45
Replacement or First Connection
New
Q. Is this Internet connection the first
Internet connection yourcompany got or a
replacement for a previous Internet connection?

• 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.

A replacement for a previous internet connection
A first internet connection for your company
A dont know
Base All SMEs using ISDN or dial-up (n154)
46
Key Business Benefits of Broadband
New
Q. What do you consider to be the key business
benefits of using broadband?

• 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.

Base All businesses with internet access (n487)
47
Awareness 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.

SME
Corporates
Base All businesses with Internet access
(n437), (n487)
48
Approaches 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.

SME
Corporates
Base All businesses with Internet access
(n437),(n487)
49
Usage 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.

Base All respondents (n550)
50
Impact of Loss of Services
New
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?
Fixed Line Service
Internet Service

• 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 .

Mobile Service
4-7 Quite critical
8-10 Very critical
1-3 Not very critical
Base All respondents (n550)
Base All businesses with company mobiles (n451)
Base All businesses with Internet access (n487)
51
Conclusions
52
Conclusions - 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.

53
Conclusions - 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.

54
Conclusions - 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.

55
Appendix Sample Details
56
Sample Profile Location of Business
Q. What region is your workplace in?
Corporates
SMEs
Wave 1
Wave 2
Wave 1
Wave 2
29
38
Dublin City
30
42
25
16
Rest of Leinster
20
14
5
12
Cork City
9
2
3
-
Waterford City
1
-
3
2
Limerick City
4
2
15
24
Rest of Munster
19
17
4
-
Galway City
3
2
10
4
Rest of Connaught
9
12
6
4
Rest of Ulster
4
9
Base All respondents (n550)
57
Sample Profile Location of Premises
Q. Is your company located in.
Corporates
SMEs
Total
39
In a large town or city
46
20
A small or mid-sized town
15
20
A rural area or village
5
17
A business park in urban area
27
3
A business park in a rural area
4
Base All respondents (n550)
58
Sample Profile Type of Company
Q. Is your company?
Corporates
SMEs
Wave 1
Wave 2
Wave 1
Wave 2
89
40
An Irish owned private company
86
35
3
8
An Irish owned public company
3
3
6
30
A Subsidiary of overseas company
3
30
1
10
A Semi-State body
2
10
1
10
A Government department
2
18

-
Other
3
2
Base All respondents (n550)
59
Sample Profile Position in Company
Q. What is your own position in the company?
Corporates
SMEs
Wave 1
Wave 2
Wave 1
Wave 2
IT Manager /IT Director
7
46
11
46
CEO/Managing Director/ Owner Manager
45
2
36
-
Telecommunications Director/Telecommunications
Manager
1
4
2
11
Finance Director/ Finance Manager
8
8
11
9
Other Director/Manager
23
26
24
12
Administration
10
10
9
4
Other
5
4
7
19
Refused
1
-
1
-
Base All respondents (n550)
60
Main Fixed Line Supplier
Q. Which fixed line phone services provider does
your company use for its voice call?
SME
Corporates
Total Wave 2
Wave 1
Wave 2
Wave 1
Wave 2
Eircom
79
82
80
77
BT Ireland
6
8
8
14
Access
3
8
2
2
Euphony
4
2
2
-
Smart Telecom
2
-
2
2
Pure Telecom
1
2
2
-
WorldCom (MCI)
2
4
1
-
Perlico

2
-
-
NewTel
1
-

-
Cinergi/Speedial
1
-

-
NTL Business/NTL
1
-

2
Other
5
-
5
2
Dont know/refused
1
-
2
2
Base All respondents (n550)
61
Internet Supplier Used
Q. What internet supplier does yourcompany use
for connecting to the internet
SMEs
Total
Corporates
Wave 1
Wave 2
Wave 1
Wave 2
Wave 1
Wave 2
eircom
66
61
66
69
72
46
BT Ireland (Esat BT)
6
16
7
7
6
12
Irish Broadband
4
2
3
4
4
4
IOL
2
-
2
1
1
-
MCI (Worldcom)
1
2
1


2
DigiWeb
1
-
1
1
1
-
UTV Internet
1
-
1
1
1
-
Leap Broadband
1
-
1


-
Indigo
1
-
1
1
1
-
NTL
1
-
1
1
1
2
Net Source
1
2
1


-
Smart Telecom
1
-
1


-
Oceanfree.net
1
-
0


-
Gallileo
1
-
0


-
IFA Telecom
-
-
-


-
Perlico
-
-
-


-
Other
6
10
7
9
7
26
Dont know
6
4
6
6
5
8
Base All businesses with Internet access (n487)
62

• For additional information please contact
• Millward Brown IMS
• 19-21 Upper Pembroke Street
• Dublin 2
• Tel [phone]