Telecommunications
• Small-business owners shop for telecommunications services frequently and commonly switch service providers. The reasons and frequency for shopping vary with the service. Most owners see considerable competition for their firms’ telecommunications business. Those who do not shop infrequently cite the lack of alternative providers as the reason.
• Forty (40) percent of small-business owners shopped for a new local telephone service provider in the last three years. Seventy-one (71) percent of small-business owners who shopped eventually switched providers. Sixteen (16) percent of those who did not shop for a new local service provider said that there were no real alternative service providers from which to choose.
• Forty-two (42) percent of respondents believe there is more competition for their business among local telephone service providers today than three years ago. On average, respondents are aware of between three and four local service providers in their area.
• Seventy-eight (78) percent of small-business owners use a cell phone for business purposes. Forty-four (44) percent purchase cell phones for select employees, but only 16 percent expect employees to provide their own for business purposes.
• Fifty-four (54) percent of respondents believe there is more competition among cell phone service providers today than three years ago. On average, respondents are aware of five cell phone service providers in their area.
• Fifty-seven (57) percent of small-business owners shopped for a new cell phone service provider in the last three years, most often citing poor service as their biggest problem. Of those who shopped, 63 percent eventually switched providers. Only 13 percent of non-shoppers believed there were no real alternative service providers available.
• Small-business owners often bundle wire-line telecommunication services with one provider. Sixty-five (65) percent of small-business owners bundle their local and long distance service plans. However, only 12 percent bundle their cell phone plan with other telecommunication services.
• Eighty-two (82) percent of small-business owners have Internet capabilities for business purposes. Over half of those who use the Internet have a high-speed Internet service. The most commonly used high-speed service is the Digital Subscriber Line (DSL).
• Forty-seven (47) percent of small-business owners shopped for a new provider of high- peed Internet in the last three years and 75 percent eventually switched providers. Sixty (60) percent cited cost as the largest factor in shopping for a new provider. Twenty-one (21) percent of non-shoppers responded that there were no real alternative providers from which to choose.
• Fifty-eight (58) percent of small-business owners believe there is more competition for their business from high-speed Internet providers than three years ago. On average, respondents are aware of five providers in their area.
• Seventy (70) percent personally evaluate their businesses’ telecommunications options while 22 percent delegate it to an employee. Just 4 percent seek the advice of an outside expert.
