At some point in time, nearly every US adult will purchase a telecommunications product or service. While consumers in regional markets generally have only a few providers to choose from, consumers have a number of choices when it comes to how they purchase these services. In August, Compete surveyed 1,511 recent telecom shoppers online about researching and buying products and services in four categories: mobile phones/plans, broadband/high-speed Internet, home phone/landline and paid TV service. You can view more in-depth results of the study by signing up for our Telecom Vantage newsletter. For now, here’s a preview.

Consumers of the three “non-mobile” categories (high-speed Internet, home telephone and paid TV) tend to have similar purchase preferences for each; the most-preferred channel is the online channel. All responses were self-reported.

• Purchasing over the phone was a clear second choice, with purchasing in a retail store following a distant third.
• For paid TV purchases, the primary channel preference was actually even at 36% between online and over the phone.

Contrary to the other categories, mobile phones and service plans seem to follow a different model. The majority of those surveyed still prefer to purchase in a retail store (51%) though the online channel is growing (29%). Previous Compete studies have shown that consumers feel apprehensive about buying a product they will carry with them every day without viewing and handling it in person. When asked which factors were most important in their decision to use the online channel, most online purchasers said they prefer that channel because of its convenience (67%, multi-response). This could be an opportunity for providers of all services to expand online capabilities and highlight the convenience of purchasing online (while helping to maintain margins).

Again, this is just a sample of what the study findings show. Our monthly newsletter includes more detailed results, including ARPU by purchase channel type. Consumers may be interested in purchasing services online, but where are they spending their money? You’ll have to sign up to find out!

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