2014 National Consumer Survey

Methodology

McLaughlin & Associates partnered with Penn Schoen Berland to develop and conduct a bipartisan national survey of 1,000 adult wireless phone users, who are likely voters. The survey was conducted between May 23-28, 2014. All interviews were conducted online. Survey invitations were distributed randomly 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 remain highly satisfied customers and consider their wireless service essential in their everyday life. Without their wireless device and service, many believe they would be at a disadvantage in managing work, school and personal things. Wireless phone consumers continue to be 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 and increase prices. Wireless phone consumers are against higher taxes to the point they support Congress passing a 5-year freeze on all new wireless taxes and fees.

Survey Structure

The survey is divided into 6 sections. Jump to a section or explore the whole survey.

1. Consumer Satisfaction
2. Consumer Lifestyle
3. Government Regulations
4. Internet & Digital Downloads
5. Taxes & Fees
6. Applications & Features

Additional Consumer Surveys

• 2013 Annual National Consumer Survey

1. Consumer Satisfaction

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

Wireless phone consumer satisfaction continues to track at a very high level. More than nine in ten (94%) wireless phone consumers are satisfied with their service. The majority (58%) is “very” satisfied. The overwhelming level of satisfaction is evident among all consumer demographics. Only 6% are dissatisfied with their service.

Back to Top

2. Consumer Lifestyle

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

The plurality (40%) says having a wireless phone is more important to them than having broadband Internet (35%), cable/satellite television (16%) or a home landline phone (10%). The importance of having a wireless phone goes up among African-Americans, women and consumers 40 and younger, especially consumers 18-29 years old.

Back to Top

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 cellphone, just say so.

A little over one-quarter (27%) doesn’t have a home landline phone and only uses a wireless phone. Just over one-third (35%) would consider “cutting the cord.” The percentage of “cord cutters” is higher among consumers under 55 years of age, especially 18-29 year olds (39%). The percentage of “cord cutters” is also higher among lower income households and women.

Back to Top

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

Four in five (83%) wireless consumers consider their wireless service to be an essential service in their everyday life. This sentiment is evident among all consumer demographics, including senior citizens.

Back to Top

Outside of your workplace or office, which one of the following devices do you use most often to go online?

The plurality (43%) uses a laptop computer most often to go online followed by a desktop computer (36%), wireless phone (15%) and tablet (6%). The use of a wireless phone to go online significantly increases among Hispanics and consumers 40 years old and younger.

Back to Top

Do you use a wireless device, like a wireless phone or tablet, for things related to work, school or personal management?

(Work, School, Personal Management don’t equal 100% because respondents were allowed to choose multiple answers)

A little less than three-quarters (72%) of consumers use a wireless device for things related to work, school or personal management. A clear majority (63%) uses a wireless device for personal management followed by work (35%) and school (14%). Consumers 40 year olds and younger and Hispanics are the most active on their wireless devices.

Back to Top

Would you be at a disadvantage without your wireless device and service for daily activities related to work, school or personal management?

Two-thirds (67%) say they would be at a disadvantage without their wireless device and service for daily activities related to work, school or personal management. Most Hispanics and consumers 40 years old and younger feel they would be negatively impacted if they didn’t have their wireless device and service.

Back to Top

How many wireless phones/tablets are being used and paid for by someone in your household, not including work phones that are paid for by an employer?

Nearly all (97%) of the respondents have at least one personal wireless phone in their household that isn’t paid for by an employer. The majority (61%) has multiple wireless phones in their household. A little less than one-quarter (23%) has three or more wireless phones in their household. On average, each household has about two wireless phones. In contrast, 43% doesn’t have a personal wireless tablet in their household. A smaller majority (57%) has at least one personal wireless tablet. A little less than one-quarter (23%) has multiple personal wireless tablets in their household.

Back to Top

From 1 to 6 please rank each of the following wireless phone factors in the order of importance they are to you with #1 being the highest level of importance and #6 being the lowest level. (MEAN RANKING)

Improving wireless phone coverage/quality, ensuring consumer privacy/security and the speed of wireless data connection are the most important factors when thinking about their wireless phone service. Service plan options and protecting their wireless phone from malware/spyware/cyber-attacks are in the second tier and viewing streaming video over the Internet is the least important.

Back to Top

3. Government Regulations

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

The plurality believes adding new government regulations on wireless phone service would make their service “worse” (39%) instead of “better” (23%). Combined, three-quarters (76%) believe adding new government regulations on wireless service would either make their service “worse” or make “no difference.” The majority (57%) of Republicans thinks adding new regulations would make service “worse.” The plurality of Democrats thinks service would be “better.” By greater than a 2 to 1 ratio (41% to 17%), Independents believe adding new government regulations would make wireless service “worse” than “better.”

Back to Top

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 (70% to 7%), the majority believes adding new government regulations on wireless phone service would make their service more expensive instead of less expensive. Four in five Republicans (80%), 62% of Democrats and 71% of Independents associate more regulations with higher prices.

Back to Top

4. Internet & Digital Downloads

Whether it’s on a computer or a wireless device, do you consider Internet service as an essential service in your everyday life?

Nine in ten (92%) consider Internet service as an essential service in their everyday life. The attitude that Internet service is a necessity is evident across all consumer demographics.

Back to Top

How often do you use your cell phone to access the Internet?

Four in five (80%) respondents have a smartphone with Internet service. The majority access the Internet on their smartphone every day or almost every day. The percentage of smartphone owners and regular Internet users significantly increases among Hispanics and consumers 40 years old and younger.

Back to Top

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?

More than two-thirds (69%) of wireless phone 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.

Back to Top

Do you think it’s fair or unfair for consumers who buy digital goods or services to have to pay taxes from several different government jurisdictions for the same purchase?

By a 3 to 1 ratio (65% to 21%), virtually two-thirds think it’s unfair for consumers who buy digital goods and services to have to pay taxes from several different government jurisdictions for the same purchase. There is a majority consensus regardless of political affiliation.

Back to Top

5. Taxes & Fees

If additional taxes and fees were added to your wireless bill each month, would you reduce your wireless service plan to help make up for the increased costs?

If additional taxes and fees were added to their wireless bill each month, 71% would reduce their wireless service plan to help make up the increased costs. The percentage of people who would reduce their service plan is highest among Hispanics (88%).

Back to Top

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 (53%) continues to think 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, 95% believes the tax rate should be the same or less than the taxes they pay on general goods and services.

Back to Top

Do you believe a combined federal, state and local tax rate of 17% for wireless services is not enough, about right or too much?

Essentially 4 in 5 (79%) believe the combined federal, state and local tax rate of 17% for wireless services is “too much.” This overwhelming opinion cuts across all consumer demographics.

Back to Top

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?

Four in five (84%) favor imposing a 5-year freeze on all new wireless taxes and fees. The support for the moratorium is both wide and deep. The majority (56%) “strongly” supports it. Only 7% opposes it.

Back to Top

Do you support or oppose adding an Internet access tax on your monthly Internet service bill?

Three-quarters (77%) oppose adding an Internet access tax on their monthly Internet service bill. Roughly two-thirds (65%) “strongly” opposes it. The large opposition is evident among all political groups.

Back to Top

Would you support or oppose your state enacting tax policy reforms that allow communication companies to increase the availability of mobile broadband in areas with insufficient or no broadband coverage?

By nearly a 3 to 1 margin (61% to 22%), the majority supports their state enacting tax policy reforms that allow communication companies to increase the availability of mobile broadband in areas with insufficient or no broadband coverage. The majority consensus cuts across political lines.

Back to Top

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?

The majority (59%) opposes diverting the funds dedicated for e-911 services to pay for other government programs. The majority opposition is stronger among Republicans and Independents than Democrats.

Back to Top

6. Applications & Features

What type of “app” do you use most often on your cell phone or other wireless devices? (Multiples Responses Allowed - Percentages Don’t Equal 100%)

The top apps used by wireless phone consumers are weather, social networking and GPS/maps. The second tier apps are banking/finance, entertainment and news/politics. Weather apps are top choices among all age groups except 18-29 year olds. Social networking apps are more popular among consumers 40 years old and younger. Among senior citizens, weather and GPS/maps apps are used the most. By far, 18-29 year olds are the most active app users.

Back to Top

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 the most popular wireless phone feature, followed by taking pictures, Internet access and e-mail. The second tier features are GPS, apps, games and music. Apps, music and games spike among consumers 40 years old and younger. In general, consumers 40 years old and younger use more features than older consumers.

Back to Top