Irish SMEs afraid to make the switch: survey

06-02-2007

by Maxim Kelly

Eircom is seen as a "private monopoly" and Irish firms thinking of switching providers have a "better the devil you know" approach to the telco, says a new survey.

The comments come from two new qualitative surveys of Irish SMEs and consumers commissioned by ComReg. The surveys were based on interviews with focus groups conducted by researchers from Millward Brown IMS and Amarach Consulting respectively.

The researchers found that Eircom's decision to cut off more than 40,000 Smart Telecom customers in October reinforced the feeling amongst small firms and consumers that they were better off remaining with Eircom.

Discussions hosted by Amarach with six focus groups in October last year found that individuals who had switched providers were generally satisfied with their experience, and most said they were receiving a good deal because alternative services usually came bundled with broadband.

A number of survey participants had switched back to Eircom in the past twelve months because of better deals on offer, although a complaint for many subscribers was the annoyance of cold calling from existing or competing fixed-line service providers soliciting their custom.

Speaking with Millward Brown researchers, business respondents had a more cautious attitude to switching providers and, unlike some consumers who were happy with relying on mobile phones, they said having a landline number was often seen as "adding credibility" to a business and meant they were not seen as "fly by night".

Many of the companies interviewed don't feel their fixed line costs are that high, and would be reluctant to switch for a saving of 10-15 percent to a company that they are not familiar with.

Although some members of the business focus groups did rely heavily on mobile phones within their companies, and reported that e-mail was reducing the reliance on landlines, there was a still a strong reluctance to do away with them. Some focus group members did spontaneously mention internet telephony (VoIP) but researchers reported a limited understanding of VoIP or its potential.

In terms of attitudes to mobile phones, business respondents welcomed increased competition in the sector, but called for more clarity and transparency in pricing. Coverage was still an issue for many outside of urban areas, and roaming charges were generally regarded as being too dear.