Telecommunications

1. 1

   Small-business owners shop for telecommunications services frequently and commonly switch service providers. The reasons and frequency for shopping vary with the service. Most owners see considerable competition for their firms’ telecommunications business. Those who do not shop infrequently cite the lack of alternative providers as the reason.

2. 2

   Forty (40) percent of small-business owners shopped for a new local telephone service provider in the last three years. Seventy-one (71) percent of small-business owners who shopped eventually switched providers. Sixteen (16) percent of those who did not shop for a new local service provider said that there were no real alternative service providers from which to choose.

3. 3

   Forty-two (42) percent of respondents believe there is more competition for their business among local telephone service providers today than three years ago. On average, respondents are aware of between three and four local service providers in their area.

4. 4

   Seventy-eight (78) percent of small-business owners use a cell phone for business purposes. Forty-four (44) percent purchase cell phones for select employees, but only 16 percent expect employees to provide their own for business purposes.

5. 5

   Fifty-four (54) percent of respondents believe there is more competition among cell phone service providers today than three years ago. On average, respondents are aware of five cell phone service providers in their area.

6. 6

   Fifty-seven (57) percent of small-business owners shopped for a new cell phone service provider in the last three years, most often citing poor service as their biggest problem. Of those who shopped, 63 percent eventually switched providers. Only 13 percent of non-shoppers believed there were no real alternative service providers available.

7. 7

   Small-business owners often bundle wire-line telecommunication services with one provider. Sixty-five (65) percent of small-business owners bundle their local and long distance service plans. However, only 12 percent bundle their cell phone plan with other telecommunication services.

8. 8

   Eighty-two (82) percent of small-business owners have Internet capabilities for business purposes. Over half of those who use the Internet have a high-speed Internet service. The most commonly used high-speed service is the Digital Subscriber Line (DSL).

9. 9

   Forty-seven (47) percent of small-business owners shopped for a new provider of high- peed Internet in the last three years and 75 percent eventually switched providers. Sixty (60) percent cited cost as the largest factor in shopping for a new provider. Twenty-one (21) percent of non-shoppers responded that there were no real alternative providers from which to choose.
   
   • Fifty-eight (58) percent of small-business owners believe there is more competition for their business from high-speed Internet providers than three years ago. On average, respondents are aware of five providers in their area.

10. 10

    Seventy (70) percent personally evaluate their businesses’ telecommunications options while 22 percent delegate it to an employee. Just 4 percent seek the advice of an outside expert.

Volume 4, Issue 8, 2004
ISSN 1534-8326

William J. Dennis, Jr.
NFIB Research Foundation

• 3Compared to three years ago, is there much more, slightly more, about the same, slightly less, or much less competition for your LOCAL telephone business? Top 100
• 8cCompared to three years ago, is there much more, slightly more, about the same, slightly less, or much less competition for your cell phone telephone business? Top 100
• 9Which best describes your current business situation? (Re: Internet service) Top 100
• 9dCompared to three years ago, is there much more, slightly more, about the same, slightly less, or much less competition to provide high-speed Internet service? Top 100
• 1Approximately how many telephone lines do you have coming into your business?
• 2Do you have local telephone service and long-distance service with one provider or do you have them from different providers?
• 4In the last three years, have you or someone on your behalf, shopped for a new supplier of LOCAL telephone service?
• 4Aa(dissatisfaction with local service) The amount you were paying.
• 4Ba(dissatisfaction with local service) The lack of service options.
• 4Ca(dissatisfaction with local service) Changes made in service without your prior knowledge or consent.
• 4Da(dissatisfaction with local service) The general level of service including service interruption, repair, billing problems, can’t reach a live representative, etc.
• 4Ea(dissatisfaction with local service) The provider merged or was getting out of the business.
• 4Fa(dissatisfaction with local service) You wanted to consolidate telecommunications services with one provider.
• 4bDid you eventually change providers?
• 4cWas the reason you didn’t shop because you were satisfied with your LOCAL telephone service provider because there were no real alternatives, or because you had more pressing matters?
• 5How many providers of LOCAL telephone service are you aware of in the area where you do business?
• 6How many providers of LONG-DISTANCE telephone service are you aware of in the area where you do business?
• 7Do you personally use a cell phone for business purposes?
• 7aIs your cell phone essential, important, occasionally useful, or a modest convenience in helping you operate this business?
• 8Do you purchase cell phones, including a package of minutes, for selected employees?
• 8aHow many employees do you purchase cell phones for?
• 8bDo you expect any employees to have a cell phone for work purposes that you do not purchase for them?
• 8dIn the last three years, have you or someone on your behalf, shopped for a new supplier of cell phone services?
• 81dA(reason shopped for new cell phone) You needed a different plan.
• 81dB(reason shopped for new cell phone) You wanted to upgrade technology or options.
• 81dC(reason shopped for new cell phone) Of changes made to the plan without your prior knowledge or consent.
• 81dD(reason shopped for new cell phone) Of poor service, weak signals, or dropped calls.
• 81dE(reason shopped for new cell phone) The provider merged or was getting out of the business.
• 8eDid you eventually change providers?
• 8e1Did you have to pay a contract termination penalty?
• 8fWas the reason you didn’t shop because you were satisfied with your cell phone service provider, because there were no real alternatives, or because you had more pressing matters?
• 8gHow many providers of cell phone service are you aware of in the area where you do business?
• 8hIs your current cell phone provider the same as your regular, land-line telephone service provider?
• 9aWhat type of high-speed Internet service do you have?
• 9bDo you sometimes use your computer as a telephone, known as voice over service?
• 9cDo you NOT have high-speed Internet service because you choose not to subscribe or because none is available in your area?
• 9c1Why do you choose not to subscribe to high-speed Internet service?
• 9eIn the last three years, have you or someone on your behalf, shopped for a new supplier of Internet service?
• 9e2Did you eventually change providers?
• 91eA(dissatisfied with Internet service) The cost of the service.
• 91eB(dissatisfied with Internet service) The reliability of the service.
• 91eC(dissatisfied with Internet service) The speed of the service.
• 91eD(dissatisfied with Internet service) The responsiveness of the provider to problems.
• 9fWas the reason you didn’t shop because you were satisfied with your Internet service provider, you were locked into a long-term contract, there were no real alternatives, or because you had more pressing matters?
• 9gHow many providers of high-speed Internet service are you aware of in the area where you do business?
• 10In your business do you have a fax machine or a multi-functional machine with a faxing capacity?
• 11Do you personally evaluate the business’s telecommunications options, have an employee do it for you, or hire an outside expert for that purpose?
• 12Are you very confident, somewhat confident, not too confident, or not at all confident that (you/an employee/an outside expert) can make sound technical judgments about telecommunications options and how they fit your business?
• 13Do you consider the telephone bills you typically receive to be exceptionally clear and understandable, clear, confusing, or exceptionally confusing?