Family wireless plans prove popular with 2 in 5 U.S. adult cell phone users.
March 5, 2006
Two in five (41%) U.S. adult mobile phone users say they currently have a family plan, and 97 percent of these consumers say they never had a family member leave their plan, according to a recent survey by Harris Interactive. Looking to the future, even more subscribers could sign up as one-third (33%) of mobile phone users who are not currently in a family plan say they will consider one when their contract expires. The survey also reveals the factors that fuel purchase decisions when selecting a family plan and who is making these decisions.
Below are some of the results of the Harris Interactive Winter 2006 Telecommunications Report titled “Hot Issues Facing the Industry.” The study was conducted online from January 19 to 25, 2006 among 1,067 U.S. adults, of whom 865 are current mobile phone users and 342 are in a family plan.
All in the family
The survey shows that about three-quarters (71%) of family plans primarily consist of two members, spouses or partners, but the network of family plan users extends far beyond couples. Other members include:
Parents (19%)
Adult children ages 18 and over (18%)
Children ages 10 to 15 (10%)
Adult children with separate households (8%)
Children ages 16 to 17 (6%)
Elderly family members (3%)
Other (9%)
Who’s making the call
When it comes to contributing to the purchase decision for a family plan, 84 percent of adults say they put their two cents in. In some cases, other relatives (19%), parents (12%) and adult children aged 18 and over (7%) and those with separate households (5%) contribute their say.
Deciding factors
There is a mix of factors that impact a purchasing decision, but for those in a family plan, coverage/quality of service (32%) is almost as important as the price/monthly fee (41%). Other factors like the phones available (14%) and customer service (13%) play a slightly smaller role.
Joe Porus, vice president and chief architect for the Technology Research Practice at Harris Interactive, states: “Wireless consumers clearly love family plans because they deliver great value. Wireless service providers offer such plans to build subscriber loyalty and reduce churn. However, this might not prove a winning strategy for providers in the long term. When contracts near expiration, consumers shop for the best deal and if a better family plan presents itself, the entire family will jump to the new provider. So, in the long run, family plans could contribute to lower margins and have little impact on churn.”
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For more information at http://www.harrisinteractive.com


























