Credit crunches annual mobile contracts

7 Aug 2009

UK regulator Ofcom’s annual communications market report has found just 3% of new mobile users in the first quarter of 2009 took up twelve-month contracts. The report indicates the recession has made consumers more eager to search out the best value deals and lowest prices and has seen them choosing either rolling monthly contracts or longer 24 month contracts (with lower charges and better handset subsidies) instead.

One segment which has continued to grow despite the financial downturn is broadband Internet access, including mobile broadband. Ofcom found at the end of the first quarter 68% of households had a broadband connection, up from 58% twelve months previously, while the amount of time spent online has also continued to increase year-on-year.

There has also been a marked increase in the uptake of telecoms service bundles with the report finding that 46% of households were taking bundled services during the first quarter of this year, compared to 39% in the same period of 2008.

United Kingdom