You Have Choices: Choosing a Service Provider – Online Survey
Final Report
December 2016

Prepared for the Canadian Radio-Television and Telecommunications Commission
Contract Award Date: August 18, 2016
Contract #: 82082-170119/001/CY
POR Number: POR 034-16

Department Contact: communications@crtc.gc.ca

Ce rapport est aussi disponible en français.

Table of Contents

• Political Neutrality Certification
• Executive Summary
  • Research Purpose and Objectives
  • Summary of Findings
    • Over-the-Air Television (OTA TV)
    • Defining User Segments
    • Paid Television Services
    • Internet Services
    • Home Phone Services
    • Cellular Services
    • Technology User Behaviour
    • Final Observations
  • Methodology
• Detailed Results
  • Introduction
  • Methodology
• Over-the-Air Television (OTA TV)
• Paid Television Services
  • Switching Behaviours, Triggers, and Barriers
  • Choosing a New Service Provider
• Internet Services
  • Switching Behaviours, Triggers, and Barriers
  • Choosing a New Internet Service Provider
• Home Phone Services
  • Switching Behaviours, Triggers, and Barriers
  • Choosing a New Home Phone Service Provider
• Cellular Services
  • Switching Behaviours, Triggers, and Barriers
  • Choosing a New Cellular Service Provider
• Technology User Behaviour
  • Devices Used for Research
  • Technology Sophistication
  • Bundling Services
• Appendix
  • Survey Instruments
• Data Tables (available under separate cover)

Political Neutrality Certification

I hereby certify as Senior Officer of Quorus Consulting Group Inc. that the deliverables fully comply with the Government of Canada political neutrality requirements outlined in the Communications Policy of the Government of Canada and Procedures for Planning and Contracting Public Opinion Research.

Specifically, the deliverables do not include information on electoral voting intentions, political party preferences, standings with the electorate or ratings of the performance of a political party or its leaders.

Signed:

Rick Nadeau, President

Quorus Consulting Group Inc.

Executive Summary

Research Purpose and Objectives

The Canadian Radio-television and Telecommunications Commission (CRTC) commissioned Quorus Consulting Group (Quorus) to conduct a survey to better understand the triggers, resources and types of information relevant to Canadians as they switch, subscribe or consider a telecommunications, Internet or television service provider. These insights will help the CRTC redesign an existing online tool called Service Providers Near Me.

Specifically, the objectives of this project are to:

• Identify the frequency and the triggers that explain why Canadians would switch service providers;
• Identify the influencers and broader reasons behind switching;
• Identify how they choose between providers; and
• Group the above information into logical audience personas that will be used to create user goals, user tasks and use case scenarios.

Summary of Findings

Behaviours towards communication service providers were explored on a per service basis, given that respondents may not subscribe to all services and attitudes could also differ depending on the service. Therefore, results are herein organized by each of the communication services used.

Over-the-Air Television (OTA TV)

Half of Canadians are aware of whether or not OTA TV is an option in their area, with most claiming that it is available. The remaining half of Canadians don’t know if it is available in their area.

Over half of those aware of OTA TV have seriously looked into accessing free TV channels for their home, mainly using Google or other search engines. A few would use the CRTC website or web sites from television service providers. The information sought includes the number of channels available, the equipment needed, specific channels available or if OTA TV is accessible in their area.

Defining User Segments

For each of the four main services explored in this study, survey respondents were classified depending on their sign-up or switching intentions or based on their switching behaviour during the last year. The user segments are defined as follows:

• Intenders: Not subscribed to the service today but intend to subscribe within the next 6 months.
• Considerers: Have a service today and have considered switching service providers within the last year.
• New Subscribers: Have a service today but signed up for the first time within the past year.
• Switchers: Have a service today and switched service providers within the past year.
• Status Quo: Have been with their current service provider for over a year and have not considered switching.
• Non-subscribers: Do not subscribe to the service today and have no intention of doing so within the next 6 months.

Paid Television Services

The largest user segment when it comes to paid television services is the Status Quo segment (roughly one-third), followed by Considerers and Non-Subscribers (roughly one out of five respondents in each segment). Fewer than 10% fall into each of the Intender, Switcher and New Subscriber segments.

Among Considerers, two thirds considered switching once or twice, and the other third considered switching at least three times. Among Status Quo subscribers, 7 in 10 are open to switching service providers, while the remaining feel they will probably never switch service providers.

Specific events that trigger the idea of switching service providers among Considerers are mainly when the service bill received is higher than usual, or when the service does not work as expected. Other triggers, not only for Considerers but also for New Subscribers, Switchers and Intenders include the perception of high prices, better offers from competitors, or specific channels or content wanted. The main barrier to switching among Considerers is the perceived hassle of going through the process.

Overall, respondents estimate there are on average three (3) paid television service providers in their area to choose from. In order to find one, respondents mainly turn to their family and friends for advice, visit specific service provider websites, use Google or other search engines in general, or call sales representatives from service providers. New Subscribers are more likely to use online sources (websites, social media, blogs or chat rooms) compared to other segments.

When looking for information to choose a paid TV service provider, the most important information for respondents are (in order of importance): the monthly price, the cost of the service or any equipment needed, and the channel packages.

Over 4 in 5 respondents say it was easy to find the information they were looking for. Among those who didn’t feel the information was easy to find, nearly one third had trouble finding information on the monthly price, the television channel packages available, and the cost of equipment needed (set-up boxes, satellite dish, etc.).

Internet Services

The largest user segment when it comes to internet services is the Status Quo segment (roughly one-half), followed by Considerers (roughly one fifth), New Subscribers and Switchers (roughly one out of ten respondents in each segment). Fewer than 10% fall into each of the Intender and Non-Subscriber segments.

Over 7 in 10 Considerers thought of switching internet service providers once or twice during the last year, while the remaining considered switching at least three times. Two thirds of Status Quo subscribers are open to switching service providers. Nearly a third of Considerers indicated there was a different reason every time they considered switching over the past year. Other common triggers included a higher bill than usual or whenever the service didn’t work as expected (as noted by a quarter of Considerers). Another main reason to switch is the high cost of the service, particularly for Considerers and Switchers. The former, however, have not switched mainly because they find it is too much trouble, or the setup costs with a new provider would be too expensive.

On average, internet subscribers believe there are four (4) service providers in their area. When looking for information on them, at least two out of five visit specific service provider websites, speak to friends, family or coworkers, or do a general search on Google or other search engines.

In terms of the type of information that is of greatest interest, respondents tend to focus on the monthly price, the set up costs of any equipment, the internet speed in their area, and the monthly data cap.

Overall, four in five say it was easy to find the information for which they were looking. Among those who say it was difficult to find certain information, nearly one third had trouble finding information on the monthly price of the service, as well as the internet speed in their area.

Home Phone Services

The largest user segment when it comes to home phone services is the Status Quo and Non-Subscriber segments (roughly two out of five respondents in each segment), followed by the Considerer segment (roughly one tenth). Fewer than 10% fall into each of the Switcher, New Subscriber and Intender segments.

Among Considerers, nearly two thirds contemplated switching home phone service providers within the last year once or twice, and another third considered switching at least three times. Three in five Status Quo subscriber are open to switching providers. Considerers’ most common event triggering the idea to switch home phone service providers is the moment they receive their bill. However, this segment ends up not changing providers as they perceive this would be too much trouble for them. Other common reasons that tend to motivate individuals to switch or select a specific provider include being offered a better priced service or a promotion, or finding their current service too expensive and an increasing bill.

Respondents believe there are on average three (3) service providers in their area. To decide how to choose one, subscribers and Intenders mainly visit service provider websites, speak with family, friends and coworkers, or use Google or other search engines. The most important information sought for these respondents is the monthly price, followed closely by the costs related to setting up the service or the equipment required, as well as the availability and cost of calling features.

Over 4 in 5 respondents feel it was easy to find the information they were looking for in regards to home phone service providers. Those who felt it was difficult to obtain the information they needed say the information most difficult to find was the monthly price of the service, equipment or service set up costs, as well as contract or commitment terms.

Cellular Services

The largest user segment when it comes to cellular services is the Status Quo (roughly three out of five respondents), followed by Considerers (roughly over one in ten respondents). Fewer than 10% fall into each of the Switcher, New Subscriber, Intender, and Non-Subscriber segments.

Over 7 in 10 Considerers have thought about switching service providers in the last year at least twice. Over a quarter have considered switching at least three time in the same period of time. Nearly two thirds of Status Quo subscribers are open to the idea of switching service providers.

The most common events triggering Considerers to think of switching cellular service providers are when they get their bill, every time their service does not work as expected, and every time they get a bill that is higher than usual. However, they are most likely to refrain from switching because of stipulations in their current contract, the trouble associated with switching providers, or the expensive contract termination fees. Other reasons that typically compel individuals to switch or think of switching include the cost of the service and an increasing bill, or finding better prices or promotions from competitors.

Respondents believe there are on average six (6) cellular service providers in their area. To find information about these providers, respondents mainly resort to service provider websites, speak to friends, family or coworkers, or do a general search on Google or other search engines.

The most important information sought regarding cellular services include the monthly price of the service, data plans, cellular coverage areas, types and price of cell phones available, as well as the availability and cost of calling features. Information on cellular services are considered easy to find by over four out of five respondents. Information that is relatively more difficult to find is the monthly price, cellular coverage area, roaming rates, data plans, and contract or commitment terms.

Technology User Behaviour

This research also explored the devices used to do research on communication service providers. At least four in five respondents used their devices at home, particularly laptops or chromebooks. Not surprisingly, smartphones are used the most when conducting research on the go, or at work/school.

For all services, including OTA TV, respondents have a stronger preference to have an online tool that helps them search information based on their city or postal code.

Respondents’ attitude towards bundling their communication services leans towards bundling two services, mainly paid TV and Internet. Those considering bundling three services would include Paid TV, Internet, and home phone services.

Final Observations

Considering OTA TV has existed for much longer than paid television service, awareness of the service seems low. Behaviours towards other communication services are similar in terms of motivations to select a provider or switch to another one. Regardless of the service, most respondents are aware and willing to switch providers if they feel the service or price is not meeting their needs or expectations. It is clear communication services users are vigilant of their expenditures towards these services and the value for their money is the most important subscription driver, and therefore the most important type of information that needs to be readily available to them. Service monthly price, costs of equipment, contract terms, and service and plan details such as channel packages, internet speed and data caps, calling features, coverage areas, types and costs of devices, roaming fees, or other information with an impact on the service cost are considered crucial for consumers when it comes to selecting their service provider and the service plan that best meets their needs. This information also needs to be accessible on all types of devices as there seems to be equal use of devices when conducting research.

Methodology

The research approach consisted of an online survey with Canadians, between the ages of 18 and 55, who have an Internet connection and any of the following: a smartphone, a desktop, a tablet or a laptop. Respondents also needed to have access to or otherwise express an intention to subscribe to any of the following: over-the-air (OTA) TV, paid TV, mobile or landline phone, or Internet services. For the services to which they subscribe or intend to subscribe, the respondent needed to be one of the household’s main decision-makers or influencers.

Respondents were invited from a panel of Canadians. In total, 1,200 surveys were completed with Canadians between October 3 and October 17, 2016. Quotas were established to ensure sufficient representation in specific regions to make sure regional analysis was possible. Because of the non-probability sampling nature of online panels, a valid margin of error cannot be calculated. The margin of error for a comparable probability-based random sample of the same size is +/- 2.8%, 19 times out of 20. The data in this report is weighed to replicate actual population distributions by province, age, and gender, within Canada according to 2011 Census data.

Supplier Name: Quorus Consulting Group Inc.
PWGSC Contract Number: 82082-170119/001/CY
Contract Award Date: August 18, 2016
Contract Amount (including HST): $38,457.86
For more information, please contact the CRTC at: communications@crtc.gc.ca

Detailed Results

Introduction

The Canadian Radio-television and Telecommunications Commission (CRTC) commissioned Quorus Consulting Group (Quorus) to conduct a survey to identify Canadians switching communication service providers and their behavior around the topic, to ultimately redesign an existing online tool called Service Providers Near Me.

As part of the CRTC mandate, the CRTC helps Canadians connect to a choice of accessible, innovative and quality communication services. In the CRTC Three Year Plan 2016-2019, one of the key objectives and outcomes identified for Canadians is to ensure that Canadians are aware of their choice of service providers. In February 2016, the CRTC released an online tool called Service Providers Near Me, to allow Canadians to search for service providers near them. Currently, the CRTC requires data on Canadians switching service providers, to create profiles that will be used to redesign the tool and better serve Canadians.

The objective of the research is to obtain information that will help redesign the existing online tool and test it. Specifically, the objectives of this project are to:

• Identify the frequency and trigger events for switching or considering switching service providers;
• Identify the influencers and reasons they considered switching or switched service providers;
• Identify how they choose between providers; and
• Group the above information into logical audience personas that will be used to create user goals, user tasks and use case scenarios.

The information gathered will seek to understand Canadians’ behavior around the following areas:

• Frequency of switching service providers or considering switching;
• Top user tasks and context to use the tool;
• Triggers to switch service providers (specific conditions or situations);
• Influencers to switch providers;
• Sources of information used to choose a new provider.

Methodology

The research approach consisted of an online survey with Canadians, between the ages of 18 and 55, who have an Internet connection and any of the following: a smartphone, a desktop, a tablet or a laptop. Respondents also needed have access to or otherwise express an intention to subscribe to any of the following: over-the-air (OTA) TV, paid TV, mobile or landline phone, or Internet services. For the services to which they subscribe or intend to subscribe, the respondent needed to be one of the household’s main decision-makers or influencers.

All research work was conducted in accordance with the professional standards established by the Marketing Research and Intelligence Association (MRIA), and the Government of Canada POR Standards, as follows:

• Respondents were invited from a panel of Canadians, allowing for national representation and including rural and urban centres, both Anglophone and Francophone markets, as well as low-, medium-, and high income households. They were invited to participate through an online panel of Canadians previously screened to fulfill the profile defined above. Further screening required was added to the questionnaire to ensure the selection of survey participants was accurate.

• The design of the survey instrument relied on a set of draft questions provided by the CRTC Project Authority. Quorus provided survey design consultation to modify the questions to ensure the research objectives were addressed, plain language was used, and that the questionnaire had an easy flow for respondents. Quorus collaborated with the CRTC to finalize the survey instrument.

• The survey instrument to use in the online survey took on average 13 minutes to complete.

• Respondents had the choice to complete the interview in English or French.

• In total, 1,200 surveys were completed with Canadians between October 3 and October 17, 2016. This time frame included a pre-test of 11 surveys in English and 11 in French on October 3, 2016. The feedback from these surveys was incorporated and the full data collection period started on October 6, 2016.

• Quotas were established to ensure sufficient representation in specific regions to make sure regional analysis was possible:

  Segment	n=
  TOTAL	1,200
  British Columbia	160
  Alberta	139
  Saskatchewan/Manitoba	95
  Ontario	472
  Quebec	249
  Atlantic Canada	85

• Because of the non-probability sampling nature of online panels, a valid margin of error cannot be calculated. The Marketing Research and Intelligence Association policy limits statements about margins of sampling error for most online surveys. The margin of error for a comparable probability-based random sample of the same size is +/- 2.8%, 19 times out of 20. The margins of error would vary based on a variety of factors from question to question based on sample size and the actual percent to which the margin of error is being associated. Therefore, population sub-groups based on smaller sample sizes would have a higher margin of error.

• The data in this report is weighed to replicate actual population distributions by province, age, and gender, within Canada according to 2011 Census data.

• Note: Tables in the report may have shaded cells and bolded numbers, indicating an important difference between segments if a margin of error could have been calculated. Since these were not calculated, the highlighted numbers do not indicate statistically significant differences. Similarly, sample sizes from a population are traditionally indicated with the statistical notation “n” for probability-based random samples. While the results in this report are not from a probability-based random sample, we have used “n” to simply indicate how many respondents fall into any given category or segment.

Over-the-Air Television (OTA TV)

Survey participants were provided a description of over-the-air television (OTA TV) and asked if they are aware as to whether or not this service is an option in their area of residence. Half say they are aware of the service, of which 44% say it is an option in their area, and 6% say it is not. The remaining half did not know whether or not OTA TV is available as an option in their area.

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Respondents aware of the service in their area are more likely to be residents of Ontario (53%), between 18 to 34 years old (49%), men (54%), living in urban (49%) or suburban areas (45%), and new subscribers of a paid television service (61%). Respondents unaware of this service are more likely to be at least 50 years old compared to those 18 to 34 years of age (58% vs. 45%), and women (59% vs. 40% of men).

Among those aware of OTA TV, nearly 6 in 10 (59%) say they seriously looked into accessing free TV channels for their home. These households are most likely to have looked into the number of channels available for free (60%), followed by whether or not any extra equipment was needed and its cost (50%), if a specific channel was available (45%) and if OTA is available in their area (41%). Fewer specifically researched if certain channels or how many channels are available in high definition (33%).

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Google or other search engines are the most popular resource when looking for information about free TV, as noted by 55% of those who have already looked into accessing OTA TV. Those unaware of free TV and those who have not done any research on the topic would also choose Google and other search engines as their most likely resource (69%). The second most popular resource would be word-of-mouth, followed by specific websites. Those who have already looked into accessing free TV were much more likely to have used blogs and chat rooms compared to those who haven’t looked into free TV yet (21% vs. 9%).

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Those who mentioned “visited/ visit a specific website” were asked to specify which website they have or would use. A wide range of specific websites were noted by respondents, among which the most popular was Google (36%). Less than one tenth of respondents used or would use the CRTC website (8%¹), or the websites from Bell (6%), Shaw (5%), and Rogers (4%) among others.

When presented with different geographic options to help them search for the availability of free TV, participants would prefer to search based on their city (39%), followed by their postal code (31%). Very few would see a need to search based on their address (5%).

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Paid Television Services

When it comes to paid television services, many households (55%) have been with their current service provider for at least one year. This segment predominantly consists of “Status Quo” subscribers (33%), meaning they have been with the same service provider for over a year and have not considered switching. The remaining 22% have considered switching at least once over the past year (“Considerers”). Nearly one in ten (9%) subscribed within the last year at their current location (“New Subscribers”) and 8% have switched service providers within the past year (“Switchers”). Roughly 27% do not currently subscribe to a paid television service, of which 6% intend to subscribe within the next 6 months (“Intenders”) whereas 21% have no intention of subscribing to paid television within this same timeframe.

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Status Quo subscribers are more likely to be 50 to 55 years old, not working full-time or part-time, and earning at least $100,000 in terms of household income.

Considerers are more likely to be 35 to 49 years old than younger, employed, have a household size of at least 3 people, have a household income of at least $60,000, and live in a rural area rather than an urban area.

New Subscribers are more likely to be 18 to 34 years old, speak English at home, have a household income of less than $60,000, and live in an urban area rather than rural.

Switchers are more likely to be 18 to 34 years of age than older.

Intenders are more likely to speak French at home rather than English, live in a household of two people, live only with adults, have a household income of less than $60,000, live in an urban area, and have lived in Canada for no more than 10 years.

Switching Behaviours, Triggers, and Barriers

Respondents who have been with the same provider for over a year were asked how often they considered switching from one paid television service provider to another. Over two fifths (42%) of these Considerers say they thought about switching once during the past year, 26% say they thought about it twice, and nearly one third (32%) say they thought about this at least three times. Among the subscribers who have been with their service provider for at least one year but never considered switching during that year (Status Quo subscribers), results show that 7 out of 10 are open to switching in the future.

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Considerers who thought of switching service providers at least twice in the past year indicate these inclinations tended to recur when receiving a bill that is higher than usual (45%), or every time the service did not work as expected (44%). A few less felt this way every time they got a bill (38%). Nearly one fifth (17%) say they had a different reason to switch every time they considered switching.

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Respondents were specifically asked to explain what triggered their actions. Considerers are above all focused on price (46% feel their supplier’s price is too high and 19% feel they can get a better price elsewhere).  Only Switchers proved as focused on price as Considerers – Switchers were also influenced by a promotion or better or cheaper pricing (35%).  Both Considerers and Switchers are also questioning their quality of service and reception (19% and 21% respectively).

Intenders and New Subscribers were relatively more influenced by specific content or channels when came the decision to subscribe to a paid television service (39% and 26% respectively).

Considerers were asked for the reasons they had not switched service providers. Over two fifths (44%) say it meant too much trouble, 25% found the competitor plans were too expensive, 23% felt the set up costs were too expensive, 20% considered the competitor plans did not meet their needs and 19% felt their service provider matched the offer or offered something better.

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Choosing a New Service Provider

Perceived Number of Service Providers

Respondents believe there are on average three service providers in their area to choose from. Over a tenth (15%) were not able to provide an answer, a result that was much more common among Intenders (31%) than other segments (13%). New subscribers are more likely to say there is only one service provider in their area (9% compared to 4% overall).

Sources of Information

In order to find a paid TV service provider, respondents used several sources of information, mainly speaking with friends, family or coworkers (41%), visiting specific service provider websites (40%), doing a general search on Google or other search engine (39%), and calling sales representatives from specific service providers (31%).

Considerers are more likely to have visited service provider websites (41%) and done searches on Google or other search engines (38%).

Status Quo subscribers would be more likely to, in addition to the sources used by Considerers, speak with family and friends (47%) or use a specialized website, online simulator or calculator (17%) if they had to change their paid television service provider.

New subscribers are more likely to have used several sources of information to help them choose a paid TV service provider, including a specialized website, online simulator or calculator (19%); service provider retail stores (16%), trusted online communities (14%), blogs or chatrooms (16%), Facebook (15%), and government websites (13%).

As noted in the table above, in terms of regional use, Ontario residents tend to do general searches on search engines to find this information, and visit online communities, blogs and/or chats, more so than Quebec residents especially. Those in Manitoba, Saskatchewan and British Columbia are more likely to rely on word of mouth than those in Quebec.

Respondents under 50 years old are more likely to visit service provider retail stores. The younger segment (18 to 34) is more likely than older ones to uses blog and chat rooms, as well as Facebook and government sites. Those at least 35 years old are more likely to call specific service providers to speak to their sales representatives, while those at least 50 years old are relatively more likely to rely on the advice from family, friends and coworkers.

Men are more inclined to visit specific provider retail stores and government websites compared to women, while the latter are more likely than men to talk to their circle of friends, family members and coworkers, as well as call sales representatives from specific service providers.

Information Sought

Respondents were presented with a list of different types of information that a household could consider when deciding which service provider to use and which type or level of service their household could select with that service provider. Respondents were asked to rate the importance of each type of information in their decision making process. Overall, at least two thirds found each factor presented “critical” or “important”, especially the monthly price which was considered critical to 73% of respondents and important for another 20% (total of 93%). This is closely followed by the cost of service or equipment (63% critical, 28% important) and the channel packages (47% critical, 40% important). Information on promotions is critical to 43% of respondents and important to 37% of them. The ability to bundle services, the type of technology used to deliver the service, and customer reviews were the least important factors.

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Compared to other segments, Considerers and Status Quo subscribers are more likely to value information related to the television channel packages (89%). The latter are also more likely to value information on the cost of service or equipment (93%). In addition to these two elements, Switchers are relatively more interested in information on the monthly price (97%), and information on the ability to bundle services (85%). New Subscribers are relatively more interested in promotions (86%), the ability to bundle (80%), and the type of technology used to deliver the service (82%) compared to other segments.

Younger respondents (18 to 34 years old) are relatively more interested in customer reviews, while those 35 to 49 years old are more likely to assign importance to information on the cost of service or equipment, as well as the television channel packages.

Women are more likely than men to assign importance to information on the monthly price, the cost of service and/or equipment, and promotions.

Ease to Find Information

Respondents were asked to rate the extent to which it was easy or difficult to find information to help them in their decision making process to select a service provider. Overall, four in five subscribers (81%) found the process very easy (22%) or fairly easy (59%). New Subscribers and Switchers are more likely to find the process very easy (34% and 29% respectively) compared to Considerers (14%).

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Information Difficult to Find

Subscribers who considered the search experience less than perfect were asked what type of information they had trouble finding. Nearly one third of subscribers mentioned the monthly price (36%), the available television channel packages (32%), the cost of any equipment needed (30%), the service or equipment setup costs (29%), and the contract or commitment terms (29%). Nearly one fifth found difficult to find customer reviews (19%), or information on a specific promotion (19%).

Online Tool Search Preference

The preferred geographic search parameter for an online tool that could be used to search for paid television service providers is the city of residence (38%) followed by the postal code (32%). Very few prefer to search based on their address (6%).

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Respondents who live in an urban or suburban area are more likely to prefer to search based on their city (43% and 37% respectively), compared to those living in a rural area (24%). The latter are over three times more likely to prefer searching based on their address (14% vs. 4%).

Internet Services

Internet service subscribers were grouped in a similar form as the paid television service subscribers. In this case, over half (52%) of Internet subscribers have been with the same service provider for over a year and have not considered switching (Status Quo subscribers). Over one fifth (21%) have considered switching their service provider (Considerer subscribers). Just over one tenth (11%) subscribed within the last year at their current location (New subscribers). One tenth (10%) switched from one provider to another within the past year (Switcher subscribers), and very few respondents (3%) do not have this service but intend to subscribe within the next 6 months (Intender subscribers). An additional 3% are not subscribed to this service.

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Status Quo subscribers are more likely to be at least 35 years old, not single, speak at home a language other than English or French, or have an income of at least $100,000.

Considerers are more likely to have a household income of $60,000 to $100,000, or have lived in Canada for over 10 years.

New Subscribers are more likely to be 18 to 34 years old, single, speak English at home, have a household income of less than $60,000, or live in an urban area rather than rural.

Switchers are more likely to be 18 to 34 years of age than older. Intenders are more likely to be 18 to 49 years old.

Switching Behaviours, Triggers, and Barriers

Respondents who have been with the same provider for over a year were asked how often they considered switching from one Internet service provider to another. Similar to the paid TV service, over two fifths (46%) of these Considerers say they thought about switching once during the past year, 25% say they thought about it twice, and nearly one third (29%) say they thought about this at least three times. Among the subscribers who have been with their service provider for at least one year but never considered switching during that year (Status Quo subscribers), results show that nearly 7 out of 10 are open to switching in the future.

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Internet subscribers (Considerers) who are more likely to say they considered switching service providers at least three times include residents of Ontario (35%), married, and have a household income between $60,000 and $100,000 (42%).

For nearly one-third of Considerers who thought of switching service providers at least twice in the past year, a different reason seemed to be at the source of every time they considered switching (31%). For 24%, it was each time they received a bill that was higher than usual and for another 24% it was every time the service did not work as expected. Just a few felt this way every time they got a bill (8%), or because it was the end of their contract (6%). Another 8% provided other comments mostly related to high prices, wanting fibre optic technology, faster internet, or the moment when they learned of a new service provider.

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Internet service Considerers are mainly focused on price (42% feel their supplier’s price is too high and 21% feel they can get a better price elsewhere).  Switchers are also as focused on price.  Considerers and Switchers are also questioning their quality of service and speed (22% and 21% respectively).

New Subscribers are with a specific Internet service provider primarily because they have just moved to a new place. This is common for Intenders as well.

Results across demographic segments show that younger respondents are more likely than older ones to be called to action because they moved or simply required an Internet service.

Nearly one third of Considerers did not switch service providers because they felt that switching providers is too much of a hassle (31%) and 27% felt the setup costs with the new provider are too expensive (27%). Other common reasons to continue with their service provider after considering switching included the following: their current provider matched the competitor’s offer (21%), competitor plans not meeting their needs (17%) or realizing they are too expensive (16%), and not agreeing with the contract terms or conditions (16%).

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Choosing a New Internet Service Provider

Perceived Number of Service Providers

Respondents believe there are on average four (4) service providers in their area. One in five (20%) were not able to provide an answer. Respondents in Quebec are the most likely to say they are unaware of the number of service providers in their area (27% compared to those in Atlantic Canada (13%), Manitoba and Saskatchewan (11%), Alberta (14%), or British Columbia (17%).

Sources of Information

Sources of information most commonly used to search for an Internet service provider include specific provider websites (42%), family and friends (41%), and search engines such as Google (40%). Just over one quarter (27%) called sales representatives from specific service providers.

Status Quo subscribers are the most likely to consider using specific online sources such as service provider websites (47%), search engines for a general search (45%), and specialized websites, online simulator or calculator (19%). They are also the most likely to say they would speak with friends, family or coworkers (46%) during their research phase to switch or select an Internet service provider and the type of service.

Switchers are the most likely to have called a specific service provider to speak directly with a sales representative (41%).

New Subscribers and Intenders like using trusted online communities to get the answers to their questions from experts (19% and 22% respectively). Intenders are also the most likely to use Facebook (19%) and visit government websites to get this type of information (26%).

From a demographic segment perspective, the older the respondents are, the more likely they are to speak with friends, family and coworkers and to call service providers directly to speak with a sales representative. Younger respondents (18 to 34 years old) are more likely to consider Facebook and visit government websites than older respondents.

Information Sought

Respondents were presented with a list of different types of information that a household could consider when deciding which service provider to use and which type or level of service their household could select with that service provider. Respondents were asked to rate the importance of each type of information in their decision making process. Similar to paid television services, many Internet subscribers consider the monthly price “critical” information when choosing an Internet service provider (76%) and an additional 19% consider it important. Similarly, nearly 9 in 10 Internet subscribers and intenders value information on equipment and set up costs (58% critical, 34% important), as well as information on the Internet speed in their area (58% and 34%), and how much data can be downloaded a month (56% and 32%).

Although still considered at least “important” by the majority of respondents, information on the ability to package their Internet service with other services and customer reviews were considered the least important types of information among those listed in the survey.

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Considerers are relatively more likely than other segments to value information on the monthly price, any service or equipment setup costs and Internet speed in their area. Similarly, these are the three most important aspects of information for Status Quo subscribers, New Subscribers and Switchers. Priorities for Intenders are knowing the Internet speed in their area, the service and equipment set up costs, and how much data they would be able to download in a month.

Across demographic segments, respondents at least 35 years of age are more likely to value information on the service or equipment set up costs whereas younger segments are more likely to value customer reviews.

Ease of Finding Information

Respondents were asked to rate the extent to which it was easy or difficult to find information to help them in their decision making process to select a service provider. Overall, four in five subscribers (81%) say it was very easy (23%) or fairly easy (58%) to find the information. New Subscribers and Switchers are more likely to find the process very easy (35% and 28% respectively) compared to Considerers (16%).

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Information Difficult to Find

Nearly one third of the Internet subscribers and intenders who expressed at least some difficulty in finding the information they were searching felt finding the monthly price (33%) was one of the challenges, as was the Internet speed in their area (30%) and the service or equipment setup costs (28%). As seen previously, these are also the types of information respondents are most likely to value.

Other information that was not “very easy” to find include the contract or commitment terms (27%), the information on a specific promotion (19%), customer reviews (18%), how much data they could download in a month (17%), and whether they could bundle services (15%).

Considerers were more likely to have trouble finding the service or equipment setup costs.

Online Tool Search Preference

Overall, the geographic search preference for Internet service providers is the city of residence (38%), followed by the postal code (34%). Nearly one tenth of respondents feel inclined for a search based on their region (11%), their province (10%) or their address (7%).

In addition, respondents who live in an urban area are more likely to prefer searching based on their city (43%), and residents of rural areas are more likely to prefer searching based on their address (17%), although that option still remains comparatively less appealing than a search by city or postal code for respondents in rural areas (25% and 37% respectively).

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Home Phone Services

Similar to the other communication services, home phone subscribers were grouped in different categories depending on their intention or recent actions to switch service providers. Nearly two in five subscribers were categorized as Status Quo (38%); this means they have been with the same home phone service provider for over a year and have not considered switching, while 9% have considered switching their service provider over the past year (Considerers). Less than one in ten (6%) switched from one provider to another within the past year (Switchers), and 5% subscribed within the last year at their current location (New Subscribers). Of the 42% who do not subscribe to this service, 5% intend to subscribe within the next 6 months (Intenders).

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Status Quo subscribers are more likely to be at least 35 years old, live in Quebec, Alberta or British Columbia, not be employed, have a household income of at least $100,000, and have lived in Canada for over 10 years.

Considerers are more likely to be at least 50 years old, and be married or in a domestic partnership.

Switchers are more likely to live with teenagers.

New Subscribers are more likely to be 18 to 34 years old, and have a household income of less than $60,000.

Intenders tend to be younger, live in an urban centre, and have lived in Canada for no more than 10 years.

Switching Behaviours, Triggers, and Barriers

Respondents who have been with the same provider for over a year were asked how often they considered switching from one home phone service provider to another. Nearly half (48%) of the Considerers have thought of switching service providers once during the last year, 18% have thought about it twice, and a full third (34%) have thought about switching at least three times (34%). Those who considered switching at least three times in the past year tend to be at least 50 years old (12%).

Of the Status Quo subscribers, 61% are open to switching in the future, while the remaining 39% feel they may never switch service providers.

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Considerers who have thought of switching service providers at least twice in the past year were asked if they tended to consider switching at specific instances. For 44% of these respondents, thoughts of switching surfaced every time they got their bill and for 27% it occurred every time the bill received was higher than usual. For 18%, thoughts of switching happened every time their service does not work as expected. Over one tenth (13%) feel this way based on a variety of situations, or when their contract expired (6%).

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When specifically prompted to explain what triggered their interest to switch or subscribe, the main motivator for Considerers is price - 42% say their current provider is expensive, and 26% were compelled to consider switching because of better pricing or a promotion from the competition. Switchers are very similar to Considerers when it comes to triggers.

A recent move or simply needing the service are more likely triggers among Intenders and New Subscribers.

Considerers were asked for the reasons they had not switched home phone service providers. Nearly a third (31%) felt it was too much of a hassle and for 21% their service provider matched or improved their offer. For 19% the set up costs were too expensive and for 16% competitor plans were too expensive or they were on a contract. Another 14% did not feel they had any or enough alternatives.

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Choosing a New Home Phone Service Provider

Perceived Number of Service Providers

Home phone subscribers and Intenders believe there are on average three (3) service providers in their area. One quarter of respondents (25%) were not able to provide an answer. Respondents in Quebec are the most likely to say they are unaware of the number of service providers in their area (34%), compared to those in Atlantic Canada (18%), Manitoba and Saskatchewan (16%), Alberta (20%), or British Columbia (19%).

Sources of Information

Roughly one third of home phone subscribers and Intenders use specific service provider websites (35%), speak with friends, family or coworkers (35%), search on Google or other search engines (34%), or call specific providers to speak with a sales representative (29%) in order to choose a service provider and decide what kind of service they would get.

Status Quo are the most likely to use specific service provider websites (41%), speak with family and friends (38%) or do a general search using Google or a similar search engine (38%). These are also the primary sources of information for New Subscribers.

Switchers are the most likely to call specific service providers to be able to speak with a sales representative (38%), although they do consult friends and family and Google as much as other segments do. Considerers are more likely to visit specific service provider retail stores compared to Intenders (23% vs. 11%).

Young respondents between 18 and 34 years old are more likely to visit blogs or chat rooms than older respondents (12% vs. 6%), who are in turn more likely to call sales representatives directly (35% vs. 17%). The oldest group, 50 to 55, is more likely to use their family and friends’ advice than the youngest respondents (43% vs. 28%).

Men are more likely than women to visit specific service provider retail stores (20% vs. 14%), or a trusted online community (11% vs. 6%). Conversely, women are more likely than men to speak with friends, family and coworkers (41% vs. 30%), or call sales representatives (33% vs. 25%).

Information Sought

Survey participants were provided with a list of the different types of information and were asked to rate the importance of each in their research process to select a home phone service provider. The monthly price is a critical piece of information for 71% of respondents, and an additional 21% consider it important. Another important piece of information is the service or equipment setup costs, which is considered “critical” for 56% of respondents, and considered “important” for another 32%. Nearly half of respondents also consider information on the availability and cost of calling features as “critical” (47%), and another 36% consider this important information.

The next most important level of information (top-two ratings) would include information on the ability to package other services with the same service provider and information on promotions (81% respectively). Respondents were least likely to value customer reviews (66%) and information on long distance packages or rates for calls to countries other than Canada and the US (64%).

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Considerers are most interested in knowing the monthly price of the service (96%). This is a similar sentiment among Status Quo subscribers (95%) and Switchers (91%). New Subscribers especially value promotions (90%), while Intenders seem especially focused on the availability and cost of calling features (82%) and promotions (80%).

From a demographic segment perspective, respondents at least 50 years old are more likely to say the monthly price is important to know (95%). Those at least 35 are also more likely to value information on the ability to package other services with the same service provider (84%), or the type of technology used to deliver the service (81%). Younger respondents (18 to 34) are more likely to value information on time of day or day of week conditions for long distance calling (81%), customer reviews (69%) and information on long distance rates for countries other than Canada and the US (68%).

Women are more likely than men to value information on the monthly price (96% vs. 89%), set up costs (93% vs. 84%), calling features (87% vs. 81%), and promotions (85% vs. 78%).

Ease of Finding Information

How easy it was to find the information sought was also asked to home phone subscribers and Intenders. Overall, more than 4 in 5 respondents (84%) found the process very easy (27%) or fairly easy (57%). New Subscribers and Switchers are more likely to find the process very easy (42% and 39% respectively).

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Information Difficult to Find

Home phone subscribers and Intenders who had some difficulty finding information regarding the service provider or the specific service, were asked to indicate the information that they had trouble finding. Nearly one third had some trouble finding the monthly price (32%), the service or equipment setup costs (28%), and the contract or commitment terms (27%).

Other information considered relatively difficult to find was the availability and cost of calling features (19%), the information on a specific promotion (17%), customer reviews (15%), long distance packages or rates for calls within Canada and the US (14%), time of day or day of week conditions to make long distance calls (13%), the option for bundling services (13%) and long distance packages or rates for calls to countries other than Canada and the US (12%).

Online Tool Search Preference

Over one third of subscribers and Intenders prefer using an online tool to search home phone service providers that allows them to search based on their city (38%), or postal code (33%).

Consistent with the other services, respondents in urban or suburban centres are more likely to prefer searching based on their city (40%), while those living in rural areas are more likely to prefer searching based on their address (17%).

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Cellular Services

Cellular service subscribers were grouped depending on their intention or recent actions to switch service providers. Nearly two thirds (61%) of cellular subscribers have been with the same service provider over a year and have not considered switching (Status Quo subscribers) while 15% have considered switching (Considerers). Nearly one in ten (8%) switched from one provider to another within the past year (Switchers), or subscribed at their new and current location (New Subscribers - 6%). Nearly one tenth (9%) do not have a cellular service, but 3% of these intend to subscribe within the next 6 months (Intenders).

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Status Quo subscribers are more likely to be 50 to 55 years old, and have lived in Canada for more than 10 years.

New Subscribers are more likely to be under 50 years old, have a household income of less than $60,000, and have lived in Canada for 10 or less years.

Switchers are more likely to live in Alberta, in a suburban area, and with teenagers.

Intenders are more likely to be men, and have a household income of less than $60,000.

No specific demographic segments stand out when it comes to describing the Considerers group.

Switching Behaviours, Triggers, and Barriers

Subscribers who have been with the same provider for over a year were asked how often they considered switching from one cellular service provider to another. Nearly half (45%) of these Considerers say they thought about switching once during the past year, 28% thought about it twice, and 28% thought about it at least three times.

Among those who did not consider switching over the past year (Status Quo), 63% are open to switching in the future, while the remaining 37% feel they may never switch.

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For 29% of Considerers who thought of switching service providers at least twice in the past year, interest tended to surface every time they got a bill, and for 28% it happened every time the service did not work as expected or every time they got a bill that was higher than usual (28% respectively). For another 22%, consideration of another supplier occurred at the end of their contract, while for 19% it happened for different reasons every time they considered switching.

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When specifically asked to specify what triggered their actions, results show that Considerers were especially compelled by price (50% feel their current price is too high and 27% feel they can get a better price elsewhere). Switchers are also focused on price. Considerers and Switchers also question their current provider’s quality of service, speed and reception (18% and 15% respectively).

New Subscribers signed up primarily because they have recently moved to a new place (30%). This is common for Intenders as well (22%).

Reasons to switch by other demographic variables are listed in the table below.

Subscribers who considered switching service providers were asked why they decided not to switch. The main barriers were a current contract (28%), the contract termination fees (26%), and a sense that the process is too much of a hassle (27%). Other limitations to switching given by nearly one fifth of Considerers include realizing that the competitor plans were too expensive (19%), that they did not meet their need (18%), or their current provider matched the offer or offered something better (17%).

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Choosing a New Cellular Service Provider

Perceived Number of Service Providers

Cellular service subscribers and Intenders believe there are on average six (6) service providers in their area. Nearly one-quarter of respondents (23%) were not able to provide an answer. Quebec residents or Intenders are the most likely to say they are unaware of the number of service providers in their area (33% and 46% respectively).

Sources of Information

The most common sources of information on cellular service providers and the services they offer are the service providers’ websites (41%), family, friends or colleagues (40%), and Google or other search engines (35%). These are followed by the service provider retail stores (26%), calling service provider sales representatives (22%), specialized websites, simulators or calculators (11%), online communities (9%), Facebook (8%), online blogs or chat rooms (5%), and government websites (4%).

New Subscribers are more likely to use trusted online communities as a source of information for their cellular service (19%), as well as government websites (12%).

Men are more likely than women to use online communities (11% vs. 6%) and blogs or chat rooms (7% vs. 4%) for this purpose, while women are more likely to speak with friends, family members or colleagues (44% vs. 36%).

Information Sought

Respondents were presented with a list of different types of information that a household could consider when deciding which cellular service provider to use and which type or level of service their household could select with that service provider. Respondents were asked to rate the importance of each type of information in their decision-making process. Similar to the other services, the monthly price of the cellular service was considered “critical” information by 75% of respondents and considered “important” by an additional 19%. Other types of information with high “crucial” ratings included the data plans (64% crucial, 26% important), the cellular coverage area (60% crucial, 29% important), the types and price of cell phones available (55% crucial, 32% important), the availability and cost of calling features (52% critical, 34% important), and promotions (47% crucial, 36% important).

Other information that continues to be important, yet not as crucial, is the reputation of the company (top two box score of 82%), understanding which service provider is available in their area (80%), and roaming rates (76%). Types of information that were relatively less valuable include information on the type of technology used to deliver the service (72%), the ability to bundle services (68%), customer reviews (67%), and lastly long distance packages and rates for calls to countries other than Canada and the US (59%).

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Considerers assign the greatest value on information related to monthly price (96%), the data plans (93%), and the cellular coverage area (89%). Switchers align with Considerers in many respects. Status Quo respondents also believe the monthly price information is important (94%), as does information on the types and price of cell phones available (90%), and the data plans (89%). For New Subscribers, value is most likely seen in information on the monthly price (92%) along with the data plans (89%), the types and price of cell phones available (87%), and the reputation of the company (87%). Intenders value information on monthly price (74%), the availability and cost of calling features (73%), and the cellular coverage area the most (72%).

In terms of age, the importance of roaming rates increases with age while the importance of customer reviews decreases with age.

Men are more likely to value information on the ability to bundle services (72% vs. 65%) while women are generally more likely to value all other types of information compared to men.

Ease of Finding Information

Cellular subscribers also rated how easy it was to find the information they were looking for. Overall, four in five respondents (83%) say it was very easy (29%) or fairly easy (54%) to find the information. New Subscribers and Switchers were again the most likely segments to consider finding the information they needed “very easy” (41% and 34% respectively) while Intenders seemed to have the greatest degree of difficulty, with 39% indicating their quest for information was “fairly difficult” and only 7% feeling it was “very easy.”

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Information Difficult to Find

Among respondents who did not consider it was easy to find the information related to their service, the most common information noted was the monthly price of the service (30%), followed by the cellular coverage area (25%), the roaming rates (25%), data plans (25%) and the contract or commitment terms (24%). Nearly one in five expressed some difficulty in finding the information on a specific promotion (21%), the price of the cell phones (18%), or the availability and cost of calling features (17%).

Considerers were relatively more likely to have difficulty finding information on the monthly price (36%), cellular coverage area (30%), contract or commitment terms (29%), and availability and cost of calling features (19%).

Online Tool Search Preference

Respondents would prefer searching for cellular service providers according to their city of residence (40%) or the postal code (28%). Respondents in urban centres are more likely to prefer the search by city, while those in rural areas prefer the search by address (13%).

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Technology User Behaviour

Devices Used for Research

Survey participants were asked to indicate how they used their various devices to conduct their research on communications service providers and the services they offer. At least 80% of respondents used each technology at home, with the highest incidence showing for a laptop/chromebook at 87%. Smartphones are the device used the most (33%) when conducting research on the go. Many also use their smartphone at work (29%)

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Technology Sophistication

Survey participants use their devices most frequently to stream videos or movies from the Internet - 49% do so at least three times a week using a Smart TV, laptop or PC. Similarly, 47% manage their personal banking online on a regular basis using their computer or laptop. Not far behind, 42% manage their personal banking online using an app on their cell phone or tablet.

Less frequently, respondents stream video or movies using their cell phone or tablet at home (33% at least 3 times a week). Over a quarter of respondents (28%) listen to music through a subscription music service at least 3 to 4 times a week.

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Respondents who use a Smart TV, laptop or PC to stream video on a daily basis tend to be residents of Ontario (35%) compared to those in Quebec (20%), Manitoba and Saskatchewan (25%), or British Columbia (25%); 18 to 34 years old (39% vs. 22% of older respondents), and men compared to women (32% vs. 25%). Similarly, those streaming video at home using their cell phone or a tablet are more likely to be from Ontario (22%), than from Atlantic Canada (13%), Quebec (12%), or British Columbia (13%); under 50 years old (20% vs. 9% of older respondents); and men (21% vs. 14% of women).

Those managing their personal banking from their computer or laptop are more likely to be men than women (25% vs. 18%), and those using an app on their cell phone or tablet tend to be under 35 years old rather than older respondents (24% vs. 16%).

Respondents who listen to music through a subscription music service on a daily basis are less likely to be from Atlantic Canada (8%), compared to those in Ontario (16%), Quebec (18%) or Alberta (20%). They also tend to be under 50 years of age (18% vs. 5% of older respondents). Men as well tend to listen to music through a subscription music service on a daily basis more than women (19% vs. 13%).

Bundling Services

Respondents who indicated switching, considering to switch or intending to subscribe to at least 2 services were asked which one would be switched or subscribed as part of a bundle. Overall, one third of participants (35%) would bundle two services, mainly paid TV service and internet (20%). Another 22% would bundle three services, mainly paid TV, internet, and home phone (15%). Another 22% would not be sure what they would bundle, 3% would bundle all four services, and 18% would not be looking to bundle any service.

Appendix

Survey Instruments