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U.K. wireless phone penetration reaches 68 percent

LONDON-About 44 percent of all U.K. households had a mobile phone in 2000, but this year, 68 percent of U.K. households have a mobile phone, according to the “2001 U.K. Mobile Telephone Customer Satisfaction Study” from J.D. Power and Associates.

Nearly one in 10 households with a mobile phone has a WAP-enabled phone, yet just one in three of these WAP-equipped phones actually is used for Internet access, the study said. When users do access the Internet with these mobile phones, they primarily send and receive e-mails and browse the Web.

“There has been a significant decrease this year among non-WAP phone owners expressing an interest in accessing the Internet with their mobiles,” said Gunda Lapski, director of telecommunications and utilities in Europe for J.D. Power and Associates. “The figure is down to one in four, compared with one in three in 2000. The difference may well be a reflection on the negative publicity that has surrounded WAP features and content.”

The popularity of prepaid phones continued, with 71 percent of households currently paying this way compared with 58 percent last year. The study said nearly nine out of every 10 users who acquired service during the last year chose a prepaid option.

Among mobile-phone service providers, the study said Orange plc held the top position for the fourth year running, achieving an overall customer satisfaction score of 108 points for prepaid service. However, while the gap was narrowed between Orange and its competitors, it still had a significant lead of five points over One 2 One. One 2 One has improved its customer satisfaction score by seven points compared with the 2000 study results and is the most improved provider.

Higher customer satisfaction resulted in lower customer churn in 2001 compared with the 2000 study results, J.D. Powers said. Only 8 percent of prepaid users indicated they would definitely/probably switch providers in the next 12 months, compared with 11 percent last year.

“The most common reason for intending to switch providers remains price, although it is less important than it was in 2000, no doubt a reflection of improved tariffs in the industry,” Lapski said.

The 2001 U.K. Mobile Customer Satisfaction Study is based on detailed interviews with 2, 071 households, representing a cross-section of the U.K. mobile market.

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