April 01, 2008
2008 National Consumer Survey - Wireless Consumers Are Satisfied, Oppose Adding Regulations & Oppose Higher Taxes
MyWireless.org – a national non-profit consumer advocacy organization giving wireless consumers a powerful and unified voice to protect the freedom, value, security and mobility they enjoy with wireless services – commissioned a national survey of 1,000 adult wireless phone users who are likely voters. This survey clearly shows that consumers are overwhelming satisfied with their wireless phone service and are very skeptical about adding new regulations on wireless services. Consumers believe adding regulations would either hurt their service or make no difference, instead of improving their service. Wireless phone consumers believe in competition over regulations. Their key concern remains that adding new regulations would make their wireless service more expensive. As price is a primary concern, wireless consumers don’t want to pay higher wireless taxes or fees. The following results, released April 2008, reflect consumer opinion on a number of issues related to wireless services.
- Essentially 9 out of 10 (89%) wireless phone consumers are satisfied with their service.
- Considering the price consumers pay for their wireless phone service and the benefits it provides them, a large majority (70%) considers the value of their wireless phone service to be either “excellent” or “good.” Close to one-quarter (21%) considers the value to be “fair” and only 7% thinks the value is “poor.”
- Nearly two-thirds (64%) already thinks there are either “too many” (39%) or the “right amount” (25%) of government regulations on their wireless phone service. Only 8% thinks there are “not enough” regulations.
- Nearly three-quarters (74%) believes adding new state government regulations on wireless phone service would either make their wireless phone service “worse” (42%) or make “no difference” (32%). Only 11% believes their service would get “better.”
- Three-quarters (75%) believes adding new state government regulations on wireless phone service would make their wireless phone service “more expensive.” Only 6% thinks their service would be “less expensive.”
- 85% doesn’t want to see higher wireless taxes or fees. About two-thirds (64%) believe consumers pay “too much” in taxes and fees for their wireless phone service and 21% thinks consumers pay the “right amount.” Only 1% believes consumers don’t pay “enough.”
- Combined, 90% thinks the tax rate on their monthly wireless phone bills should be “lower” (54%) or “the same” (36%) as the tax rate they pay on general goods and services, which is approximately 6%. Only 2% says “higher.”
- 85% supports having a 3-year freeze on new wireless taxes, which would prohibit states and localities from raising taxes on wireless services. Only 8% opposes the wireless tax freeze.
- An overwhelming 82% agrees that “competition among wireless providers gives consumers enough choices so they can pick the wireless device, plan, options and content that best fits their needs”. Only 9% disagrees.
- Close to two-thirds (63%) believes “existing competition among cell phone providers already ensures that consumers have adequate consumer protections” while only 24% believes “the government needs to add regulations on cell phone services to ensure that consumers have adequate consumer protections.”
- If given the choice, about two-thirds (65%) prefer a wireless service contract with a lower price per month, a discount phone and an Early Termination Fee rather than a service contract with a higher price per month, no discount on a phone and no Early Termination Fee (20%).
- A clear majority (60%) supports using a greater portion of the universal service fund to help wireless phone companies improve the quality of wireless phone service in rural and high-cost areas. Less than one-quarter (25%) opposes it.
- Four out of five (80%) agree with the following statement: “Cell phone users want better coverage in order to use their cell phone at home and in their communities. Localities should work cooperatively with cell phone companies to ensure that wireless antennas can be located in residential areas to provide coverage wherever people live, work and play.” Only 10% disagrees.
Overall, are you satisfied or dissatisfied with your cell phone service?
| Satisfied | 89% |
| Dissatisfied | 10% |
Considering the price you pay for your cell phone service and the benefits it provides you, do you consider the value of your cell phone service to be excellent, good, fair or poor?
| Excellent/Good | 70% |
| Fair | 21% |
| Poor | 7% |
Do you believe there are too many, just about the right amount or not enough government regulations on your cell phone service?
| Too Many | 39% |
| Right Amount | 25% |
| Not Enough | 8% |
Do you believe adding new government regulations on cell phone service would make your cell phone service better or worse? If you think that adding new government regulations would make no difference, just say so.
| Better | 11% |
| Worse | 42% |
| No Difference | 32% |
Do you believe adding new government regulations on cell phone service would make your cell phone service more expensive or less expensive? If you think that adding new government regulations would make no difference, just say so.
| More Expensive | 75% |
| Less Expensive | 6% |
| No Difference | 11% |
In your opinion, do you believe cell phone users pay too much, about the right amount or not enough in taxes and fees for their cell phone services?
| Too Much | 64% |
| Right Enough | 21% |
| Not Enough | 1% |
Do you think the tax rate on your monthly cell phone service should be lower, the same or higher than the taxes you pay on general goods and services, which is approximately 6%?
| Lower | 54% |
| Same | 36% |
| Higher | 2% |
Would you support or oppose having a 3-year freeze on new wireless taxes, which would prohibit states and localities from raising taxes on wireless services?
| Support | 85% |
| Oppose | 8% |
Do you agree or disagree with the following statement? “Competition among wireless providers gives consumers enough choices so they can pick the wireless device, plan, options and content that best fits their needs?”
| Agree | 82% |
| Disagree | 9% |
Which one of the following statements comes closest to your own personal opinion? Existing competition among cell phone providers already ensures that consumers have adequate consumer protections. OR The government needs to add regulations on cell phone services to ensure that consumers have adequate consumer protections.
| Competition | 63% |
| Add Regulation | 24% |
If given the choice, would you prefer: A wireless service contract with a higher price per-month, no discount on your wireless phone, and no Early Termination Fee, OR A wireless service contract with a lower price per-month, a discount on your wireless phone, and an Early Termination Fee if the account were closed before your contract expired.
| Higher Price/No EFT | 20% |
| Lower Price/With EFT | 65% |
You are currently charged a monthly “universal service” fee on landline phone bills and cell phone bills in part to enable telecom carriers to provide service in rural and other high-cost areas. About 75% of the funds currently go toward providing landline phone services. Would you support or oppose using a greater portion of the universal service funding to help cell phone companies improve the quality of cell phone service in rural and high-cost areas?
| Support | 60% |
| Oppose | 25% |
Do you agree or disagree with the following statement? “Cell phone users want better coverage in order to use their cell phone at home and in their communities. Localities should work cooperatively with cell phone companies to ensure that wireless antennas can be located in residential areas to provide coverage wherever people live, work and play.”
McLaughlin & Associates partnered with Penn, Schoen & Berland Associates, of New York, to develop and conduct a bi-partisan national survey of 1,000 adult wireless phone users, who are likely voters. The survey was conducted between March 17-19, 2008. All interviews were conducted by professional interviewers via telephone. Interview selection was at random within predetermined geographic units. These units were structured to statistically correlate with actual general election turnouts. The accuracy of the sample of 1,000 adult wireless phone users who are likely voters is within +/- 3.1% at a 95% confidence interval. The survey results in this summary have been rounded and the wording for each question is verbatim from the questionnaire.