EY has today published their annual digital home survey of 2,500 UK consumers, which among other things reveals that the cost-of-living crisis has prompted 34% to consider “more economical broadband options” and 5G mobile is increasingly becoming a substitute for traditional home broadband (33% of households are prepared to switch to this, up from 29% in 2023).
The ‘Decoding the digital home study 2024‘ study, which also covers various other areas (e.g. TV/video streaming), finds that performance continues to be a key driver in broadband purchasing decisions. But the reliability of networks, particularly in urban areas, remains a significant concern for consumers, with 23% of household respondents still experiencing “unreliable home internet“, despite ongoing network upgrades.
However, it should be stressed that “unreliable home internet” can be caused by all sorts of issues, which may not necessarily be the fault of your broadband provider (e.g. local router problems, weak or congested WiFi). But these days many consumers now have an option of different networks and so, even if the underlying network or ISP is at fault, then solutions might sometimes be found by switching provider.
Consumers who do go looking for a new ISP tend to put the need for a broadband speed guarantee (54%) and Wi-Fi home coverage guarantee (46%) as one of their top three considerations, which helps to show why so many providers have introduced similar features over the past few years.
Which of the following service elements of a broadband package would be your top three considerations?
Broadband speed guarantee 54%
Wi-Fi home coverage guarantee 46%
Quality of Wi-Fi router or home hub 38%
Transparent pricing or price promise 35%
Quality of technical support 26%
Ability to customise package 19%
Privacy, security and wellbeing features 18%
Availability of premium content 16%
Availability of back up line in the event of network outages 16%
Range of digital customer support options 8%
Ethically sourced and sustainable equipment 8%
However, as ISPs look to increase the penetration of connectivity and content inside the home, some inhibitors still stand in the way. For example, broadband was found to suffer from poor perceptions of added value around improved speed, with half of households believing higher speeds don’t merit paying more, while a similar proportion query performance promises.
Rob Atkinson, EY UK & Ireland Managing Partner for Technology, Media and Telecoms, said:
“In a landscape where people are closely monitoring their finances, our latest findings reveal a complex picture of consumer behaviour in the UK. Despite a tangible anxiety over the escalating costs of digital services, there is a pivot towards premium offerings.
The year-on-year increase in the pursuit of premium streaming offerings, especially among those in their mid-thirties to mid-forties, highlights a sophisticated consumer base that values not just price, but the richness and convenience of their digital lifestyle.
Simultaneously, the broadband market is witnessing a demographic shift, with younger users leading provider switches. Providers must simplify the switching process and communicate value effectively; particularly as older demographics prioritise network quality and pricing transparency. This nuanced consumer behaviour underscores the need for tailored engagement and service assurance to maintain and grow customer bases in a cost-conscious era.”
The full survey is worth a read and offers some interesting context on the wider market for digital services in the home.
