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TNS: E-communications in Europe.
 

TNS: E-communications in Europe.

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Ten years is a short period in which to expect ...

Ten years is a short period in which to expect
dramatic change in consumer behaviour or
adoption of new technologies. Not so with
e-communications. The last decade has seen
a seismic shift in our use of the internet:
mobile phones now offer access to social
networks, music and entertainment, and
messaging has grown exponentially.
The momentum continues. As 4G (LTE)
continues its roll-out across Europe, it is
bringing fixed line broadband speeds to
Europe’s smartphones that will make possible
live video streaming, m-banking, m-retail and
NFC applications. It will be transformational.
Apps and internet access are also giving
impetus to new ways of keeping in touch
through a smartphone via social network
sites, which avoids call charges.
The EU has an ambitious agenda for the
internet; making fast (30Mbps+) broadband
available to all and to see superfast
broadband (100Mbps+) in 50% of homes
by 2020. There are barriers to overcome.
Internet subscribers are mostly happy with
what they have and are reluctant to pay
more. However, history suggests that sooner
or later we will want to trade up to faster
internet speeds.
Not everyone is at the frontier of change.
One household in three stills lacks internet
access, they are more likely to be older, rural
and living in Eastern or Southern Europe.
However, internet access is on a growth
trajectory and countries with low connection
rates are catching up.

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    TNS: E-communications in Europe. TNS: E-communications in Europe. Document Transcript

    • E-communicationsin the EU
    • Eurobarometer research – the research wasconducted by TNS Opinion & Social acrossthe 27 EU member states in December2011. 26,693 face-to-face at homeinterviews were conducted.2 E-communications in the EU
    • IntroductionTen years is a short period in which to expect broadband (100Mbps+) in 50% of homesdramatic change in consumer behaviour or by 2020. There are barriers to overcome.adoption of new technologies. Not so with Internet subscribers are mostly happy withe-communications. The last decade has seen what they have and are reluctant to paya seismic shift in our use of the internet: more. However, history suggests that soonermobile phones now offer access to social or later we will want to trade up to fasternetworks, music and entertainment, and internet speeds.messaging has grown exponentially. Not everyone is at the frontier of change.The momentum continues. As 4G (LTE) One household in three stills lacks internetcontinues its roll-out across Europe, it is access, they are more likely to be older, ruralbringing fixed line broadband speeds to and living in Eastern or Southern Europe.Europe’s smartphones that will make possible However, internet access is on a growthlive video streaming, m-banking, m-retail and trajectory and countries with low connectionNFC applications. It will be transformational. rates are catching up.Apps and internet access are also givingimpetus to new ways of keeping in touchthrough a smartphone via social networksites, which avoids call charges.The EU has an ambitious agenda for theinternet; making fast (30Mbps+) broadbandavailable to all and to see superfast @© 2012 TNS 3
    • Wired-up and connectedFor some years now, Europe has had near- However the big jumps in connectivity are inuniversal access to TV and phone services, broadband internet access and smartphoneand the trend is strongly upwards for other ownership. Narrowband is fading intoproducts. In the last five years, mobile phone history. Most countries are under the EUpenetration has risen by 8 points to 89% and average of 5%. Germany is the notablecomputer ownership by 14 points to 68%. exception, with 13% of homes connected to narrowband.Europe is wired-upHousehold penetration % 97 98 89 68 56 35 28 (5 years 5 Negligible 5 years ago) ago Narrowband Internet via Broadband Computer Mobile TV Any phone smartphone @Source: Eurobarometer, E-communications Household Survey June 2012, conducted by TNS Opinion and SocialBase: 27 EU countries.4 E-communications in the EU
    • The big dividePenetration of computers and broadband are having an internet connection down to justclosely aligned. However, there are significant 25% of over-60s, and even less for thedemographic and country differences over-75s.*between haves and have-nots. There is also a north-south divide: internetAge differences are most pronounced, with penetration is strong in Northern Europe anda gradient that runs from 77% of under-30s weak in Eastern and Southern Europe.Household internet connections % 71-93% 61-70% 42-60%*Based on an analysis of single-person households.Source: Eurobarometer, E-communications Household Survey June 2012, conducted by TNS Opinion and Social.Base: 27 EU countries.© 2012 TNS 5
    • Internet access is increasingInternet access is increasing, but ata fractionally slower rate % 64 57 56 48 49 36 40 Any 23 internet Broadband internet Dec 2005 Nov – Dec Nov – Dec Dec 2011 – Jan 2006 2007 2009Growth in internet ownership may be 2011 versus 2009: Any internetslowing, but the modest base (64%) and averagethe fact that there was a 7% point increase percentage pointsacross most of Europe between 2009 increaseand 2011 suggests there is a way to go Netherlands, Luxembourg 4yet. Strong gains in Eastern Europe have and Scandinavianarrowed the gap between high and low (70%+ ownership 2009)ownership countries. Even in countries Greece, Italy, Spain 4where internet ownership already exceeded Rest of EU 870%, it grew by an average 4 percentagepoints. Low growth in Greece, Italy andSpain may be a result of economic problems. Source: Eurobarometer, E-communications HouseholdSource: Eurobarometer, E-communications Household Survey June 2012, conducted by TNS Opinion and SocialSurvey June 2012, conducted by TNS Opinion and Social Base: 27 EU countries / Averages weighted by countryBase: 27 EU countries. population.6 E-communications in the EU
    • Lack of interest a barrierFor the 36% of EU citizens with no internet reason was ‘do not know exactly what theaccess, the most common reason given internet is’, scoring 7% at the EU level but ais ‘lack of interest’ (63%). Cost is a poor surprisingly high 22% in Spain.second at 18%. The next most mentioned Have access Local area is not elsewhere and covered by broadband that is sufficient Plan to subscribe in the next 6 months You and members 5 1 of your household 5do not know exactlywhat the internet is 7 18 Cost 63 No one in household is interested in the internetSource: Eurobarometer, E-communications Household Survey June 2012, conducted by TNS Opinion and SocialBase: 27 EU countries / Households without internet access.© 2012 TNS 7
    • Ambition for broadbandThe EU has an ambitious goal for broadband: person in seven is prepared to pay more for‘By 2020, all Europeans should have access a faster internet and only 1% are preparedto internet of above 30Mbps and 50% to pay an extra 33% or more.or more of European households have But this is a snapshot in time. We aresubscriptions above 100Mbps.’* happy to pay for apps and for content. AsThe EU sees this as powering a digital our appetite for films on demand, HD andeconomy and enabling all its citizens to multiple application usage increases, andparticipate. our tolerance of buffering decreases, then recent history suggests that we will judgeCitizens, however, are resistant to paying a faster connection worth paying for.more. Research suggests that only oneReadiness to pay more for higherspeed and capacity % 4 Prepared to pay up to 15% moreNot prepared to 11 Prepared to paypay more 82 16-33% more 2Don’t know 1 Prepared to pay more than 33% more*Source: A Digital Agenda for Europe 2010Source: Eurobarometer, E-communications Household Survey June 2012, conducted by TNS Opinion and SocialBase: 27 EU countries / Respondents with internet access at home.8 E-communications in the EU
    • Cost, not speedConcern over cost is reflected in the fact download speed comes a very poor second.that price is the priority when it comes Lack of awareness is an issue. When asked,to an internet subscription. Given the 58% did not know what their maximumimportance of download speed to the quality download speed was and a further 6% gaveof the internet service, it is surprising that an incorrect answer.Internet subscription considerations mentioned % 45 13 12 7 5 4 4Subscription Maximum Fact that the Customer Installation Maximum Cost of price download internet is part service cost amount you terminal speed of a bundle offered can download equipmentSource: Eurobarometer, E-communications Household Survey June 2012, conducted by TNS Opinion and SocialBase: 27 EU countries / respondents with internet access at home.© 2012 TNS 9
    • Reasons to pay moreMost people do not have difficulty accessing which needs a fast connection and highonline content due to limited speed but a capacity. This colours the perspective onsignificant minority, 42%, do and it is mostly price as a factor limiting demand for a fasterthis group that is prepared to pay more for service; it may be that people who see noa faster internet service. Mostly they want reason to pay more get everything they needto upload content and watch video and TV, from their existing service.Reasons to pay more for an internet connection with higher speedor download capacity % Upload or share content 39 Watch videos 32 Watch live events 28 Watch TV 27 Listen to music 26 Play online games 21 Make VoIP calls 17Source: Eurobarometer, E-communications Household Survey June 2012, conducted by TNS Opinion and SocialBase: 27 EU countries / Respondents who would be prepared to pay more for a faster internet connection (2134).10 E-communications in the EU
    • Mobile versus fixedTelephone access in Europe is near-universal older and living alone in a rural area in onewith penetration at 98%. Those without of the new member states.access are disproportionately likely to beMobile or fixed line access % 61 58 62 62 Fixed and mobile 18 25 25 27 Mobile only 18 14 11 9 Fixed only Dec 2005 - Jan Nov - Dec 2007 Nov - Dec 2009 Dec 2011 2006The number of households with both mobile Mobile access only %and fixed lines is stable, and growth inmobile-only is at the expense of fixed linehouseholds. However, the majority of under- 5630s are mobile-only households*. In part, 38this reflects the lifestyle of this age groupbut it also suggests that under-30s, brought 14up with the convenience of mobile phones, Under 30 years old 30-59 60+may see this as an alternative to a fixed line. years old years old*Analysis of single householdsSource: Eurobarometer, E-communications Household Survey June 2012, conducted by TNS Opinion and SocialBase: 27 EU countries / all households.© 2012 TNS 11
    • Calling via the internetInternet phone calls are made by 27% of significant factor in choosing an internethouseholds*, up 5 percentage points since subscription, which supports the view thatthe 2009 survey. people are concerned about their telecoms bill. It is surprising then that more peopleWe know that around two-thirds of people do not take advantage of internet servicessay they limit their mobile calls because of such as Skype.costs and a similar number cite price as aDoes any household member use a PC or a Wi-Fi connected device at hometo make phone calls over the internet No 70 Yes – free PC to PC calls, e.g. Skype 22 Yes – international calls via an internet phone service 4 Both options 1 Don’t know 3*Base households with internet accessSource: Eurobarometer, E-communications Household Survey June 2012, conducted by TNS Opinion and SocialBase: 27 EU countries / Respondents with internet access at home.12 E-communications in the EU
    • MessagingMobile phone messaging has grownexplosively. SMS and MMS grew from 40billion to 331 billion per annum across the10 years to 2011*. Growth, however, hasrecently switched to social networking sitesor instant messaging services, particularlyamongst the young.Whatsapp is a good example. It allows usersto exchange messages across platformswithout having to pay for SMS. Userscan also create groups, send each otherunlimited images, video and audio mediamessages. A Dutch telecoms providerreported that across just one year, 85% ofsubscribers to a youth-targeted productwere using Whatsapp.*Source: European Mobile Industry Observatory 2011 / Base: European Economic AreaSMS is text only, MMS is multimedia.© 2012 TNS 13
    • Mobile ascendancyThe gentle decline in the number of fixed- Mobile usage is not limited to calls on theline households camouflages the true growth move; an estimated 40% of mobile callsin mobile, which accounted for 62% of all are made where the caller has access to acall minutes in 2011, although this varies landline. This suggests that people enjoy thesignificantly by country. Mobile’s position personal nature of the mobile phone.is even stronger in terms of the numbers We know mobile phone usage is priceof calls made. It is estimated that mobile sensitive; two-thirds of mobile phone usersaccounts for over three-quarters of all calls; limit usage because of cost. However, the20 calls per week compared to 6 on a price trend is downwards. Prices fell by anfixed line. average 11% per annum from 2006-2010 according to GSMA.Mobile’s % share of call minutes (v fixed line) 23 42 38 2001 2006 58 62 2011 77 Mobile Fixed lineSource: European Mobile Industry Observatory 2011 Base: European Economic Area.14 E-communications in the EU
    • A bright future for smartphonesSmartphones are a must-have for most have their mobile switched on all of theyoung people across Europe, with a social time, even when they are in bed, with overvalue that greatly exceeds mobile telephony. half of adults and two-thirds of teenagersThey offer access to social networks, instant saying they have used their smartphonemessaging and text, music, games and while socialising with others. And with theentertainment. In a recent UK Ofcom report, arrival of 4G, this will only serve to make the37% of adults and 60% of teens admit they smartphone even more indispensable.were ‘highly addicted’ to their smartphone*.The vast majority of smartphone users (81%)Smartphones ownership is predicted to grow Smartphone ownership Smartphone ownership in Western Europe % in Central & Eastern Europe % 49 44 37 32 28 25 16 13 11 7 9 5 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014*Source: Ofcom, The Communications Market August 2011. Source: European Mobile Industry Observatory 2011.© 2012 TNS 15
    • New mobile services areon a growth trajectoryThe smartphone has increasingly become the broad range of mobile phone featuresa central part of people’s lives. This is expressed an interest suggests that theevidenced by the meteoric growth of apps. current market has considerable growthFor example, by October 2012, Android potential. This is demonstrated by the pictureMarket listed 700,000 apps that between from the UK (see below).them had accumulated in excess of 25 billion Commercial implications are not simply indownloads. the value of app sales or in the sale of newYet there is still a consumer appetite for the handsets, but in their ability to enable newmobile to take on an ever greater role in commercial opportunities.their lives. The fact that most non-users ofOpportunity for mobile services (UK) Home control (oven, lights) 15 35 25 Video calling 23 31 24 Scanning OR codes 26 30 20 Mobile wallet 16 29 25 Mobile banking 31 28 25 Watch live TV shows 21 27 28 Using navigation services 42 26 15 Reading books, magazines 25 26 28 Using location based services 42 25 15Source: Mobile Life; 2012 Base: Mobile Phone Users UK. Using Interested Not interested16 E-communications in the EU
    • The coming of 4G (LTE)Europe has been slow to introduce 4G and Access requires a 4G compatible handset andit is rolling out at different times in different may be more expensive. However, experiencecountries – it launched in the UK at the end elsewhere suggests an enthusiastic core ofof October 2012. There has been a lot of customers. In September 2012 Comscorecommercial effort to encourage its use, not reported that adoption of LTE handsets in theonly from network providers and handset USA grew ten-fold in the year to July 2012.manufacturers, but also from those at thevanguard of m-commerce who see profitfrom consumers having fast internet accesson the move. 4G is bringing broadband speeds to the mobile phone© 2012 TNS 17
    • How TNS can helpAs the world’s leading custom research company, TNS istrusted by major public and private sector organisationsto carry out large-scale research projects, such as theEurobarometer studies for the European Commission.TNS understands that to market Mobile technologies are changing the worldsuccessfully in the digital age, brands and they are changing the market researchmust understand the attitudes and industry. TNS is at the heart of these changes.behaviours of the connected consumer. We are developing a mobile offer with ourOur ongoing research includes studies into partner, Lumi Mobile, that not only givesthe ways in which consumers engage with quick and cost-effective research but alsobrands online, how mobile technology allows us to reach people and occasions thathas changed our lives, what makes other methods can’t.people switch brands, and the different To discuss how TNS UK can help your brandpriorities and drivers of decision-making contact Joe Webbfor those at the ‘base of the pyramid’. Head of DigitalOur flagship study, Digital Life examines the d +44 (0)20 7160 5942attitudes, motivations and behaviours online joseph.webb@tnsglobal.comof over 70,000 people in 60 countries; keyfindings from the latest wave can be foundat www.tnsdigitallife.com.Eurobarometer research – the research was conducted byTNS Opinion & Social across the 27 EU member states inDecember 2011. 26,693 face-to-face at home interviewswere conducted.18 E-communications in the EU
    • © 2012 TNS 19
    • About TNS UKTNS UK is part of TNS Global, the world’s largest research company.TNS delivers precise plans to help our clients grow.Whatever your challenge TNS UK can help:n Innovation & Product Developmentn Brand & Communicationsn Retail & Shoppern Stakeholder Management n Qualitativen AutomotiveAbout EurobarometerTNS Opinion & Social, conducts around eight Eurobarometer surveys a year, onbehalf of the European Commission. These surveys cover the resident populationof all the European Union member states, aged 15 and over.Some waves of research also involve surveys conducted in the six candidatecountries (Croatia, Turkey, the Former Yugoslav Republic of Macedonia, Iceland,Montenegro and Serbia), the Turkish Cypriot Community, and Norway.A representative sample of 1000 people is interviewed in each country (1500in Germany, 1300 in the UK, 500 in Luxembourg, the Republic of Cyprus, theTurkish Cypriot Community, Iceland and Malta).In this series:n Cyber crimen Financial servicesn Environment & climate changen E-communications in the EUTNS6 More London Place t +44 (0)20 7656 5294London SE1 2QY www.tnsglobal.comUnited Kingdom Twitter: @tns_uk