Smartphones driving boom in contracts, says Ofcom

Smartphones driving boom in contracts, says Ofcom

The rise in demand for smartphones is responsible for the number of contract customers leaping by almost 20% on last year, according to new research from Ofcom.

In its Consumer Experience report, which was issued today, research revealed 52% of customers with a mobile phone were on a contract, up from 44% in 2010. The growth was largely down to the AB socio-economic group, with almost two-thirds having a contract rather than prepay phone. However, pre-pay remains most popular among those over 65 (80%).

The report said: ‘The growth in the take-up of smartphones (38% of mobile owners) is likely to have played a role in the rise of pay monthly and longer contracts, as users repay much of the cost of an expensive handset over a number of months, rather than upfront. In Q2 2011 83% of adults with a smartphone were on a monthly contract.’

Smartphone sales have increased by 8% between the first and second quarter of this year. Ownership is highest between those aged 16-34, with over half possessing a smartphone. Ofcom suggested the trend of customers favouring contracts would continue because of internet use on mobiles and the fact postpay tariffs include data bundles.

Overall, the take-up of mobiles is stable with 94% of households having access to at least one mobile phone. Homes continue to be more likely to have a mobile than a fixed landline (94% compared to 84%). Mobile phone use is most popular in England and Northern Ireland (92%), with Scottish and Welsh use tracking at 86% and 87% respectively.

Written by Mobile Today
Mobile Today

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