2013 Annual Consumer Survey

Methodology

McLaughlin & Associates and Penn Schoen Berland developed and conducted this bipartisan national survey of 1,000 adult wireless phone users, who are likely voters. The survey was conducted between April 7-10, 2013. Seven hundred interviews were conducted by professional interviewers via telephone and 300 interviews were conducted online among respondents who only have cell phones. Overall, 684 respondents (68%) have landline phones and 316 (32%) only have cell phones. 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.

Summary

Wireless phone consumers continue to be highly satisfied customers and believe they are getting a good value considering the price they pay for their wireless service. Wireless phone consumers remain wary of adding new regulations on wireless services. They believe adding regulations would either make their service worse or make no difference, instead of making it better. The survey results depict that wireless consumers continue to be very price sensitive. They oppose adding new wireless taxes and fees and believe adding new regulations would make their wireless service more expensive.

Survey Structure

The survey is divided into 8 sections. Jump to a section or explore the whole survey.

• Consumer Satisfaction
• Consumer Lifestyle
• Government Relations
• Digital Downloads
• Taxes & Fees
• Applications & Features
• Privacy & Parental Controls
• Recycling

Additional Consumer Surveys

• 2012 Annual Consumer Survey

Consumer Satisfaction

Overall, are you satisfied or dissatisfied with your cell phone service?

Nine in ten (91%) wireless phone consumers remain highly satisfied with their wireless phone service. The majority (52%) is ‘very’ satisfied. The overwhelming level of satisfaction is evident among all consumer demographics. Only 8% are dissatisfied with their service.

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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?

Considering the price they pay for their wireless phone service and the benefits it provides them, over two-thirds (69%) consider their wireless phone service to be either an ‘excellent’ (25%) or ‘good’ (44%) value. About one-quarter (24%) considers their value to be ‘fair’ and only 6% say its ‘poor.’

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Now, how would you rate the job wireless companies are doing for their customers in each of the following areas? (excellent-good/fair-poor)

The majority continues to give wireless carriers a positive rating when asked about the job they are doing in providing choices of wireless devices (73%) and service plans (61%), and providing details on service plans (60%). The majority (57%) also believes wireless companies are doing an excellent/good job at providing choices and details in customer privacy protections.

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Consumer Lifestyle

If you had to choose one, which one of the following is the most important for you to have?

The plurality (43%) says having a wireless phone is more important to them than having broadband Internet (27%), cable/satellite television (15%) or a home landline phone (14%). The importance of having a wireless phone goes up among African-Americans, Hispanics and consumers 40 and younger, especially consumers 18-29 years old. Among senior citizens, a home landline phone and wireless phone are equally important.

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Would you consider giving up your home landline phone and only use a cell phone? If you already don’t have a home landline phone and only use your cell phone, just say so.

Approximately one-third (32%) of respondents don’t have a home landline phone and only uses a wireless phone. Among the 68% who have a home landline and wireless phone, a little more than one-quarter (27%) would consider giving up their landline phone. The percentage of ‘cord cutters’ is higher among consumers 40 years old and younger. A slight majority of 18-29 year olds only has a wireless phone.

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When making phone calls at home, do you…?

A slight majority (51%) uses their wireless phone more than a landline phone to make calls at home. A little less than one-third (31%) uses a landline phone more and 17% uses a wireless and landline phone equally. The use of a wireless phone at home increases among African-Americans, Hispanics, and consumers under the age of 55, especially 18-29 year olds. The majority (55%) of senior citizens uses a landline home phone more than a wireless phone.

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Do you consider your wireless service as an essential service in your everyday life?

More than three-quarters (78%) consider their wireless service to be an essential service in their everyday life. This sentiment is evident among all consumer groups, including senior citizens who don’t use their wireless phone as much as younger consumers.

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Which one of the following devices do you use most often to…?

The plurality uses a lap top computer most often to e-mail and go online followed closely by a desk top computer. The use of a wireless phone ranks third followed by a tablet device.

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Do you use a wireless device, like a wireless phone or tablet, for work related purposes?

Approximately one-third (32%) of all wireless phone consumers use a wireless device for work related purposes. Two in five (43%) employed consumers use a wireless device for work.

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Do you or does someone in your household use a wireless device, like a wireless phone or tablet, for education or school related purposes?

Among all wireless consumers, one-third (33%) of households uses a wireless device for education related purposes. Among households that have a child or adult in school, the majority (61%) uses a wireless device for education.

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Do you or does someone in your household use a wireless device, like a wireless phone or tablet, for general health or health-monitoring related purposes?

Only 16% of households use a wireless device for general health or health-monitoring related purposes. The percentage increases among younger consumers.

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Regarding your cell phone service, which one of the following is the important issue to you?

Regarding wireless phone service, the plurality (43%) remains focused on getting a better value for their service. About one-quarter (24%) says improving wireless phone coverage and quality is the most important issue. The importance of wireless phone features like Internet access and apps increased from 5% to 12% over the past year. The remaining issues are in the single digits. After combining consumers’ first and second choices, it is very clear getting a better value for their service and improving coverage and quality are the top priorities.

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Government Relations

Do you believe adding new government regulations on cell phone service would make your cell phone service better or worse?

By a 3 to 1 ratio (38% to 12%), the plurality believes adding new government regulations on wireless phone service would make their service ‘worse’ instead of ‘better.’ Combined, nearly three-quarters (73%) believe adding new government regulations on wireless service would either make their service ‘worse’ or make ‘no difference.’ Only 12% say government regulations would make wireless service ‘better.’ The majority (57%) of Republicans thinks adding new regulations would make service ‘worse.’ Democrats are split 19% ‘better’ verses 20% ‘worse,’ but the plurality (41%) thinks it would make ‘no difference.’ By nearly a 4 to 1 ratio (39% to 10%), Independents believe adding new government regulations would make wireless service ‘worse’ than ‘better.’

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Do you believe adding new government regulations on cell phone service would make your cell phone service more expensive or less expensive?

By a 10 to 1 ratio (62% to 6%), the majority believes adding new government regulations on wireless phone service would make their service more expensive instead of less expensive. Three-quarters of Republicans (76%) and nearly two-thirds (64%) of Independents link more regulations with higher prices. The plurality (46%) of Democrats thinks adding more government regulations will make wireless phone service more expensive.

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Digital Downloads

How often would you say you purchase online digital downloads such as ringtones, music, videos, games, books, software or apps to your cell phone or other wireless device?

A slight majority (53%) of wireless consumers purchase online digital downloads to their wireless phone or other wireless device. Consumers 40 years old and younger are more likely to be a digital downloader. Four in five (80%) 18-29 year olds download digital goods.

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Which statement do you agree with more on the issue of taxing the purchases of online digital downloads?

1. Federal guidelines should establish one fair and consistent set of taxes to apply to purchases of online digital downloads.
2. Each state should have the right to decide how its state taxes the purchases of online digital downloads, even if it means the consumer could be subject to taxes from multiple jurisdictions for the same purchase.

By a 17-point margin (49% to 32%), nearly half of wireless consumers prefer digital downloads being subject to one fair and consistent set of taxes established by federal guidelines rather than allowing each state to decide how its state taxes the purchases of online digital downloads, even if it means the consumer could be subject to taxes from multiple jurisdictions for the same purchase. Republicans are evenly divided on the issue. The majority of Democrats and plurality of Independents favors federal guidelines.

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Taxes & Fees

From what you know, about what percentage of your monthly cell phone bill is taxes and fees?

There remains a significant lack of awareness about how much consumers actually pay in taxes and fees on their monthly wireless phone bills. One-quarter (26%) doesn’t know what they pay in taxes and fees. Among those who gave an estimate, most consumers think they pay less than 15%. The average answer is 10.1%, which is well below the national average of 17.1%.

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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 7%?

The majority (55%) thinks the tax rate on their monthly wireless phone bill should be lower than the taxes they pay on general goods and services, which is approximately 7%. Combined, 9 in 10 (91%) believes the tax rate should be the same or less than the taxes they pay on general goods and services. This consumer sentiment is consistent across political affiliation.

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Would you support or oppose Congress passing a 5-year freeze or moratorium on all new wireless taxes and fees, which would prohibit states and municipalities from raising taxes and fees on wireless services?

Nearly three-quarters (74%) favor imposing a 5-year freeze on all new wireless taxes and fees. The moratorium proposal is widely supported by Republicans, Democrats and Independents.

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Under current law, there is a moratorium that prohibits states and municipalities from taxing your access to the internet— the monthly charge from your internet service provider. This law is set to expire in November 2014. If it expires, state and local governments would be allowed to impose taxes on your monthly internet bill. Would you support or oppose Congress continuing the moratorium, which prohibits states and municipalities from taxing your access to the Internet?

By a 4 to 1 ratio (72% to 18%), a clear majority supports Congress continuing the moratorium on taxing access to the Internet. This is a consumer issue which has broad support regardless of political affiliation.

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As you might know, you pay an e-911 fee on your monthly cell phone bill. The purpose of the e-911 fee is to improve the emergency response systems that locate people who dial 911 from their cell phones. Would you support or oppose diverting the funds dedicated for e-911 services to pay for other government programs?

Seven in ten (70%) oppose diverting the funds dedicated for e-911 services to pay for other government programs. This majority opposition cuts across party lines.

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Would you support or oppose creating a new federal e-911 fee in addition to state and local e-911 fees for next generation 911 services?

The majority (63%) remains opposed to creating a new federal e-911 fee in addition to state and local e-911 fees for next generation 911 services. The majority of Republicans, Democrats and Independents agree on this issue.

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Does the cost of your wireless service impact your wireless usage?

A little over one-third (35%) says the cost of their wireless service impacts their wireless usage. The cost influences the wireless usage of 18-29 year old consumers the most.

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Applications & Features

Other than making or receiving voice calls, which one of the following cell phone features is most important to you?

Other than making or receiving voice calls, texting is clearly the most popular wireless phone feature, followed by Internet access, taking pictures, and e-mail. The remaining feature choices are not as popular. The importance of texting goes up among consumers 18-29 years old and drastically drops among senior citizens. Internet access is more important to consumers 40 years old and younger.

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What type of ‘app’ do you use most often on your cell phone or other wireless devices?

The top apps used by wireless phone consumers are social networking, weather, GPS/maps, news/politics and banking/finance. Social networking apps are more popular among consumers 40 years old and younger. Among all consumers, entertainment apps aren’t popular; however, entertainment apps are the second most used apps among 18-29 year olds.

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Do you use your cell phone to access or manage personal information like bank accounts, membership accounts, account passwords, bills or statements?

Approximately 3 in 10 (29%) use their wireless phone to access or manage personal information like bank accounts, membership accounts, account passwords, bills or statements. The use of a wireless phone to access or manage personal information increases among consumers 40 years old and younger and decreases among consumers older than 55 years old.

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Have you ever used your cell phone for civil engagement or advocacy like signing an online petition, sending an e-mail to a legislator or making a donation to a certain cause?

Only 10% say they have used their wireless phone for civil engagement or advocacy. The usage slightly increases among younger consumers.

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Privacy & Parental Controls

From the following list, which privacy issue for wireless consumers is most important to you?

1. Having options to allow or block advertisements or marketing phone calls, and spam text messages.
2. Having options to allow or block location based services that use your phone to determine your location.
3. Protecting personal data, communications and transactions
4. Protecting children’s privacy

Protecting personal data, communications, and transactions and having options to allow or block advertisements or marketing phone calls and spam text messages are clearly the most important privacy issues to wireless phone consumers. These are the top privacy issues across the board. The importance of protecting children’s privacy does increase (19%) among parents who have children with wireless phones; however, protecting personal data (38%) and having options to allow or block advertisements and spam (27%) remain the top issues. Being able to allow or block location based services ranks fourth (11%) among this group of parents.

Which age categories do your children fall into? What was the youngest age your child or children got their first cellphone?

A little over one-quarter (27%) of the respondents are parents of children under the age of 18. Thirteen percent (13%) have children with wireless phones (14% with children without wireless phones). Among those who have children with wireless phones, the majority of their children are teenagers 13 years old or older (percentages for this question do not equal 100% because we accepted multiple answers to account for households with multiple children). Four in five (81%) of their children got their first wireless phone between the ages of 9 and 15. Close to half (47%) gave their child their first wireless phone between the ages of 9 and 12.

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Are you aware or do you use parental controls or settings offered by wireless carriers that allow parents to limit a child’s cell phone use, a child’s internet access, and texting and downloading?

Three in five (61%) parents with children who have a wireless phone are aware of or use parental controls or settings offered by wireless carriers. The younger parents are more aware of the available parental controls. Nine out of ten (92%) parents age 18-29 know about the parental controls offered by wireless carriers.

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Are you aware or unaware that all major wireless carriers provide free, geographically targeted Wireless Emergency Alerts to capable devices in the event of imminent threats, such as AMBER Alerts for abducted children, or severe weather alerts?

Among all consumers, the majority (57%) is aware that all major wireless carriers provide free, geographically targeted Wireless Emergency Alerts to capable devices in the event of imminent threats, such as AMBER Alerts for abducted children, or severe weather alerts. The majority of each consumer demographic is aware.

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Are you aware or unaware that all major wireless smartphone operating systems, as well as many third party applications, provide the ability to lock, locate, and erase data from smartphones in the event they are lost or stolen?

A slight majority (51%) is aware that all major wireless smartphone operating systems, as well as many third party applications, provide the ability to lock, locate and erase data from smartphones in the event they are lost or stolen. The awareness level is higher among younger consumers.

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Recycling

Most of today’s cell phones and accessories are recyclable or reusable products. Have you ever recycled or donated your cell phone or any accessories?

Three in five (60%) consumers have either recycled or donated a wireless phone or accessories. Forty-four percent (44%) have recycled and 40% have donated a wireless phone product.

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