Booz and Company, a research firm, recently undertook a study on trends in consumer preferences in the UK, which revealed that many consumers have already drastically reduced their spending on telecom services, and many more are likely to follow. This is bad news for mobile broadband companies as lower spending by consumers is likely to have a huge adverse impact on the industry.

The findings of the study show that at least one-fourth of the consumers have already decreased their expenditure on communications and media services. It has also been predicted that another one-fourth of the consumers would be resorting to cost cutting in the near future.

The only silver lining is that those companies, which provide bundled broadband services, such as BT, might not suffer. The research revealed that 45% of the consumers using telecommunication services would prefer bundled packages, and this could directly benefit companies like BT.

The survey also revealed that around 23% consumers would consider unsubscribing from their broadband or TV service, or switching to pay and go mobile broadband to lower costs. Another one-fourth of the consumers indicated that they might consider no longer using a mobile phone connection or will go for a cheaper one if the situation does not improve.

Commenting on the findings of the study, Michael Peterson, the head of the UK division of Booz and Company, strongly recommended that mobile operators should plan a long-term approach instead of simply focusing on immediate tactics, as the consumers are unlikely to be lured by short-term gains anymore.

This entry was posted on Thursday, May 21st, 2009 at 7:20 am and is filed under Shoppers Advice, Technometer, Telecommunication Center. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.