Pre-paid still favoured in SA

The ability to manage costs on pre-paid cellular services seems to be the main driver behind their popularity.

This is according to a survey conducted around mobile phone services by global research company, Synovate.

Synovate randomly interviewed adult mobile users in the metropolitan areas of SA with 72% of the pre-paid customers saying these packages are cheaper than contracts while 56% indicated that it is an easier way to control spending.

The survey found out that pre-paid dominates the SA market, with 87% of those sampled revealing that they are currently on pre-paid packages. However, according to Synovate, the benefit of contracts lies in their convenience.

Of the contract users interviewed, 50% said given that contracts do not 'run out', it makes them ideal for emergencies and more dependable.

According to the survey findings, while fixed contracts offer a variation in packaging voice and data to service the needs of mobile consumers, 23% of the respondents aged between 35 and 49 opted to go the pre-paid route because they do not want to commit to a 24-month contract.

“Only a small group of pre-paid consumers (12%) did not actually qualify for a contract,” the survey reveals.

With regards to changing contracts, 27% of consumers had upgraded to more expensive contracts during the previous year, whereas 22% of consumers reported downgrading to cheaper packages during the same period, states Synovate.

Eighty-three percent of mobile users would prefer a customisable package or contract where they could choose the amount of airtime, SMSes and data they receive each month.

According to the client service director at Synovate, Andries Lombaard: “Despite the general perception of poor service from network providers, 95% of mobile consumers stated that they are happy with their current network provider.”

He states that factors involved in choosing a network provider included coverage, call tariffs, cost per month, brand reputation and customer care.

He explains that call costs or coverage issues were the main reasons why most people were not satisfied with their network providers.

Of the respondents 93% agreed that it was important to always have coverage and for calls not to drop. Younger users were least likely to be forgiving about these issues.

Lombaard says with SA mobile consumers expecting lower mobile costs in the future, “we found that a great number (46%) of consumers are still willing to pay more on call costs and receive a subsidised handset”.

He adds that users aged 18 to 34 were most concerned about the image and functionality of their handsets. “Whilst those over 50 are more likely to go for a simpler cellphone on a cheaper package or contract.”

He says, when comparing usage trends, 95% of calls are made using mobile phones as opposed to landlines. “Mobility is the biggest driver of this phenomenon. Over the years, we have all been conditioned to keep our mobile phone with us, in some cases even leaving more important things such as your wallet behind,” he adds.

Lombaard points out that as a result, it has become a natural reaction to reach for a mobile phone to make a call, even if one is right next to a landline phone. “In this case, convenience is the motivating factor, rather than cost.

“Making a phone call or sending an SMS remain the most frequently used functions among mobile consumers, but this survey indicates a high incidence of using handsets for accessing the Internet,” says Lombaard.

“Many functions used by mobile consumers are Internet-related activities, such as social networks, chatting, e-mail, application downloads and surfing the net. Our research demonstrated that the latest handsets allow high-speed access to the Internet. This will drive a higher demand for mobile data in the future,” the research company says.

Synovate says it also asked respondents what they thought the 'next big thing' would be in the mobile space. Apart from the 13% that expected lower call costs in future, respondents need free calls, free Internet access and cheaper or free SMSes.

However, some mentioned watching TV on their mobile handsets with a very small percentage (2%) looking forward to 3D on their handsets. Of respondents, 2% felt that better network coverage might be the “next big thing” for them, the report revealed.