Survey finds high number of phone users ready to quit Telecom Eireann

A survey has found that Telecom Eireann could lose large numbers of its subscribers to rival telephone companies after the market is liberalised next Tuesday.

The latest findings of Amarach Consulting's TrendWatch Technology series found nearly one third (32 per cent) of a representative sample of 311 people, said they would definitely switch telephone service provider in the next six months to get a better deal. A further 27 per cent said they would probably switch.

Those most likely to change over are mobile phone and personal computer owners, and a key motivation is the prospect of savings of 10 per cent. More than a quarter surveyed said they would definitely switch to a service which offered free local calls even if that meant more expensive trunk, international and mobile phone calls.

Half the survey respondents believe Telecom Eireann is "doing a great job" by bringing down the cost of telephone use, and 70 per cent say the company's standard of service is excellent. However, low loyalty levels were reflected when 40 per cent said they did not feel a bond with Telecom Eireann and it did not understand their needs.

Seventy per cent of those surveyed said they would prefer to move to another Irish company. Esat Telecom has a head start, with 28 per cent of telephone users saying they would choose Esat if they were offered a desirable package. Only 10 per cent said they would opt for Ocean, a joint venture set up by the ESB and British Telecom.

Although customers are drawn to lower prices and better deals, half those surveyed said they did not really care how much their phone bills were and whether they could afford it or not. Sixty per cent said their bills were always much higher than expected. Three quarters of the respondents said they got good value for money out of their telephone service, but poorer ratings were awarded for mobile phone and Internet access services.

Nearly one third of the respondents have mobile phones, and a further 14 per cent plan to get a mobile phone in the next six months. These people are predominantly male, under 25 and working or in third-level education. Three quarters subscribe to Eircell, and more than 60 per cent of those planning to get a mobile phone said they would choose Eircell's service. However, of 80 per cent of respondents who said they would switch to an alternative supplier if offered the same service for 10 per cent less, Eircell customers were in the majority.

The PC market looks set for further growth here also, with nearly one in 10 planning to buy a PC in the next six months. Two thirds of these do not currently use a PC. Sixty per cent of planned purchasers said they had no idea which model they would choose, though Apple and IBM topped the list among those who had decided.