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Consumer Expectations Driving Demand - Consumer Communication Services Preferences Survey 

  • February 2016
  • 21 pages
  • Frost & Sullivan
Report ID: 3691060

Summary

Table of Contents

Consumer Expectations Driving Demand - Consumer Communication Services Preferences Survey

Executive Summary

External factors are always a consideration when gauging the enthusiasm with which consumers purchase communication services. The US government, for example, measures consumer confidence, and uses it as a metric to predict economic trends. Stratecast does something similar, but since consumer confidence generally does not do a good job of predicting the consumption of service offerings, especially communication service offerings, we took a different approach.

In the case of Stratecast consumer surveys, we ask whether the economy will have an impact in the coming year on consumption of communication services. In the last two surveys, consumers indicated that they expect the economy to stay pretty much the same in the coming year, and they indicated that their view on economic outlook would influence their spending. Based on the service revenue trends, their stated proclivities seem to have been on the mark: network operator revenues have risen, and the number of subscriptions for cutting edge services, such as wireless and Internet access, has increased.

This year, consumers are a little more anxious about future economic prospects, and expect the upcoming US elections to impact the economy. Additionally, a proportionally high percentage of those responding expect to vote in the general election; denoting a high level of engagement. However, this does not indicate that consumer communication service preferences have remained static: as in previous years, the trend is away from dedicated network subscriptions, such as voice and video, to pure access services such as Internet and wireless. Stratecast has found that consumer surveys are a reliable harbinger of future buying habits.
This year’s survey indicates that consumers will increasingly migrate to over the top (OTT) services. For network operators, they need to accelerate their delivery and marketing of compelling OTT service offerings to better align with where consumer preferences are heading.

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