ROCHESTER, N.Y.—About two in five adult cellular phone subscribers currently are on a family plan, and another one in five is considering a multi-line plan when their current service contracts expire, according to a recent survey by Harris Interactive.
The online study was conducted in late January among 1,067 adults. Nearly 900 respondents were mobile phone users and 342 were on family plans.
According to the survey most of the family plans—about 71 percent—have only two members, Harris concluded. Other people likely to participate in family plans were parents (18 percent), children over the age of 18 (18 percent) and children between 10 to 17 years old (16 percent). Perception of coverage and service quality was given the most weight in the purchase decision, followed by price, the types of phones available, and customer service.
“Wireless consumers clearly love family plans because they deliver great value. Wireless providers offer such plans to build subscriber loyalty and reduce churn,” said Joe Porus, vice president and chief architect for the Technology Research Practice at Harris Interactive. “However, this might not prove a winning strategy for providers in the long term. When contracts near expiration, consumers shop for the best deal and if a better family plan presents itself, the entire family will jump to the new provider. So, in the long run, family plans could contribute to lower margins and have little impact on churn.”
