Monday, March 14, 2005

The Survey says.....

survey

According to a new nationwide
survey of U.S. adults, awareness and familiarity of Voice over Internet
Protocol (VoIP) are significantly higher among businesses than among
consumers.

* While nearly nine in 10 (87%) business decision makers are aware of
VoIP (76% at least somewhat familiar), one-third (36%) of consumers are
aware of VoIP (56% at least somewhat familiar).
* Furthermore, while 12 percent of business decision makers familiar with
VoIP currently use it, only three percent of consumers familiar with
the technology use it.

These are some of the results from The 2005 Telecommunications Report, a
study conducted quarterly by Harris Interactive(R). The most recent study was
conducted in January 2005 among a sample of 1,473 U.S. adults and 335 business
decision makers.

Barriers for adoption
The survey suggests that there are several barriers to consumer adoption
of VoIP. Some of the barriers relate to attitudes toward the new service.
Among those who are aware of VoIP, but do not use it:

* I just don't know much about VoIP (47%);
* VoIP providers have failed to show me a convincing story (36%);
* I'm waiting for VoIP to become more mainstream (34%);
* Recommendations would help me move toward VoIP (27%);
* Potential savings are just not worth the hassle (25%);
* VoIP seems too complicated (equipment, installation) (22%); and
* VoIP is an unproven technology (22%).

Other barriers stem from the perceived drawbacks of the technology. Among
those who are aware of VoIP, but do not use it:

* VoIP might not support 911 calling in my area (62%);
* VoIP could be subject to security and privacy issues (60%);
* In a power failure situation, VoIP would not work (58%); and
* The quality of my calls could be worse than with traditional phone
service (52%).

Good news for service providers
While these barriers obviously pose challenges for VoIP service providers,
there is some good news about this new technology. Of those consumers surveyed
who currently use VoIP, many say they are either very (13%) or extremely (27%)
satisfied with their service while an additional 44 percent say they are
somewhat satisfied. The same can be said for businesses that use VoIP. Of
those business decision makers surveyed who use the technology, one-third
(34%) say they are very satisfied and seven percent say they are extremely
satisfied with their VoIP service. An additional 54 percent report being
somewhat satisfied with their service.
Also, of those business decision makers surveyed who are likely to use
VoIP technology within the next year, nearly three-fourths (72%) are
projecting a savings of between 11 and 40 percent in their annual telecom
budgets. (See Table 8)
"Addressing the perceived barriers to VoIP technology presents a challenge
for service providers, but the potential savings by businesses may be the
leverage providers need to not only attract the attention of more businesses,
but to seed interest in consumers as well," says Joe Porus, chief architect
for Technology Research at Harris Interactive. "And when consumers take into
account the overall satisfaction levels of both businesses and consumers who
already use the technology, adoption rates may begin to grow."


TABLE 1
AWARE OF VoIP
"New technology has come on the scene ... referred to as Internet Telephony
VoIP. Are you aware of this term?"

Base: All adults

Consumers Businesses
(n=1,473) (n=335)
% %
Yes 36 87
No 64 13


TABLE 2
FAMILIARITY WITH VoIP
"How familiar are you with this new technology?"

Base: Aware of VoIP term

Consumers Businesses
(n=637) (n=297)
% %
Extremely familiar 4 5
Very familiar 10 21
Somewhat familiar 42 50
Not very familiar 35 21
Not at all familiar 9 3


TABLE 3
CURRENT USAGE OF VoIP
"Are you currently using VoIP?"

Base: Familiar with VoIP

Consumers Businesses
(n=580) (n=288)
% %
Yes 9 12
No 91 88


TABLE 4
LIKELIHOOD OF ADOPTING VoIP
"How likely are you (your company) to use VoIP within the next year?"

Base: Does not use VoIP

Consumers Businesses
(n=520) (n=229)
% %
Extremely likely 2 2
Very likely 4 6
Somewhat likely 30 21
Not very likely 45 45
Not at all likely 19 25


TABLE 5
ATTITUDES TOWARD VoIP
Percentages represent combined "4" and "5" responses from a scale of 1 to 5 (5
= "very important")
"Please indicate the extent to which you agree or disagree with each of the
following statements."

Base: Does not use VoIP

Consumers
(n=520)
%
VoIP providers have failed to show me a convincing story. 36
I'm waiting for VoIP to become more mainstream. 34
Recommendations would help me move toward VoIP. 27
Potential savings are just not worth the hassle. 25
VoIP seems too complicated (equipment, installation). 22
VoIP is an unproven technology. 22
I just don't know much about VoIP 47


TABLE 6
BARRIERS TO ADOPTING VoIP
"VoIP offers many advantages, but there are some drawbacks as well. In
deciding whether or not to adopt this technology, please rate each of the
following limitations of VoIP in terms of that limitation's potential impact
on your decision."
Percentages represent combined "4" and "5" responses from a scale of 1 to 5 (5
= "A Show Stopper" and 1 = "No big deal")

Base: Consumers who do not use VoIP

Consumers
(n=520)
%

VoIP might not support 911 calling in my area. 62
VoIP could be subject to security and privacy issues. 60
In a power failure situation, VoIP would not work. 58
The quality of my calls could be worse than the
traditional phone service. 52
I must have a high-speed Internet line and some additional
equipment to use VoIP. 35
There is not directory (white pages) with VoIP. 30


TABLE 7
SATISFACTION WITH VoIP
"Overall, how satisfied are you with VoIP?"

Base: Use VoIP

Consumers* Businesses*
(n=45) (n=51)
% %
Extremely satisfied 27 7
Very satisfied 13 34
Somewhat satisfied 44 54
Not very satisfied 12 5
Not at all satisfied 4 1

* Very small base.


TABLE 8
PROJECTED COST SAVINGS
"With the adoption of VoIP, what level of cost savings are you projecting
with respect to your annual telecom budget?"

Base: Likely to use VoIP

Businesses*
(n=76)
%

0 to 5% 11
6 to 10% 12
11 to 20% 34
21 to 30% 27
31 to 40% 11
More than 40% 5

* Very small base.

Methodology
Harris Interactive(R) conducted the online study in January 2005 among a
nationwide sample of 1,473 U.S adults (aged 18 years and over) and 335 U.S.
business decision makers aged 18 and over. Figures for age by gender,
race/ethnicity, education, region, household income and sexual orientation
were weighted to reflect the total U.S. adult population. Propensity score
weighting was used to adjust for respondents' propensity to be online.
In theory, with a probability sample of this size, one can say with 95
percent certainty that the results for the consumer sample have a sampling
error of plus or minus 3 percentage points and results for the business sample
have a sampling error of plus or minus 5 percentage points. Sampling errors
for sub-sample results (see tables above) are higher and vary. Unfortunately,
there are several other possible sources of error in all polls or surveys that
are probably more serious than theoretical calculations of sampling error.
They include refusals to be interviewed (nonresponse), question wording and
question order, and weighting. It is impossible to quantify the errors that
may result from these factors. This online sample was not a probability
sample.

These statements conform to the principles of disclosure of the National
Council on Public Polls.

About Harris Interactive Technology Research
The Harris Interactive Technology Research group doesn't just monitor and
measure the industry. It interacts with the thought leaders who drive
technology, telecom and e-business everyday and provides insights from a
variety of vertical perspectives. Using the group's unique knowledge,
experience, and expertise in both the telecommunications and information
technology sectors, Harris Interactive asks the right questions, confirms
business issues, designs and implements studies to provide clients with
actionable results.
A copy of The 2005 Telecommunications Report can be obtained upon request.

About Harris Interactive(R)
Harris Interactive Inc. (http://www.harrisinteractive.com), the 15th
largest and fastest-growing market research firm in the world, is a Rochester,
N.Y.-based global research company that blends premier strategic consulting
with innovative and efficient methods of investigation, analysis and
application. Known for The Harris Poll(R) and for pioneering Internet-based
research methods, Harris Interactive conducts proprietary and public research
to help its clients achieve clear, material and enduring results.
Harris Interactive combines its intellectual capital, databases and
technology to advance market leadership through U.S. offices and wholly owned
subsidiaries: London-based HI Europe (http://www.hieurope.com), Paris-based
Novatris (http://www.novatris.com), Tokyo-based Harris Interactive Japan,
through newly acquired WirthlinWorldwide, a Reston, Virginia-based research
and consultancy firm ranked 25th largest in the world, and through an
independent global network of affiliate market research companies. EOE M/F/D/V
To become a member of the Harris Poll Online(SM) and be invited to
participate in future online surveys, visit http://www.harrispollonline.com.

Press Contacts:

Nancy Wong
Harris Interactive
585-214-7316

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