Consumers Reducing Expenditure on Telecom Services
A study conducted by Booz and Company, a well-known research company, on British consumers reveals that around 25% of the consumers have cut back on their spending on media and communication and that another 26% might do so in the next six months.
Moreover, 23% of the respondents to the survey said that they might not renew their broadband connections or TV subscriptions, while 25% said that they would explore cheaper options for their mobile connection or consider mobile broadband pay as you go as a means of cutting their monthly costs.
Based on its research, the group has cautioned telecom companies that this trend of reduced spending by consumers can lead to some serious consequences for the mobile broadband industry.
There was positive news for some of the operators though, as the report revealed that 45% of the consumers would like to explore the option of bundled packages of media and telecommunications services. This implies that BT along with other broadband operators who provide such bundled services will not face too much trouble in the coming months, and they may even be able to expand their business.
The head of Booz and Company in the UK, Michael Peterson, said that businesses need to give high priority to realigning their products and services in the next few months to make sure that they remain attractive to the customers. It is important that these companies also pay attention to their long term plans because the consumers are now more informed about the services available in the market.
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