A new survey by Eurostat found that 42 percent of EU households take a bundled telecoms package, with more than one service. Over 60 percent of all internet subscriptions and half of fixed lines are purchased in a bundle. The main advantage of a bundle is the single provider and bill, according to 41 percent of respondents, while 33 percent said they think a bundle is cheaper than paying for each service separately. However, 16 percent consider that bundles offer some services they do not need and another 10 percent were concerned about the lack of transparency in the cost and conditions of each service.
The survey of 27,000 households in February and March this year is part of the investigation by the EU regulator Berec, commissioned by the EC, to look at the quality and transparency of internet and telecom services. The survey found a quarter of respondents think their internet download/upload speeds do not match the conditions of the contract they signed, and one in three said they have experienced disruptions to service. A similar problem is evident in the mobile market, where a quarter of respondents said they have difficulties connecting to the mobile network and a similar proportion have experienced dropped calls.
Consumers are also concerned about price, with 65 percent saying they are now limiting their mobile calls due to concerns about the costs (up 4 percent since the last survey of November-December 2009). The use of cheaper VoIP services is increasing, to 28 percent of households with internet access versus 22 percent in the last survey.
Despite the concerns about cost and quality, 60 percent of households say they have never considered switching to another service provider and 77 percent said they would never change their bundle. Among the obstacles to switching are the risk of a temporary loss of service, the risk of having to pay for more than one provider during the switching process, and the lack of clarity about the steps required for switching.
The survey also looked at the penetration of telecom services and found 27 percent of households only have a mobile phone. This is over 50 percent of households in five countries (Czech Republic, Finland, Latvia, Lithuania and Slovakia). The EC will publish the findings of Berec's broader investigation late this year, as well as data on actual and offered broadband speeds.
