A question of coverage

CMA Articles

Posted on: 13/11/2009

Consumer Panel research reveals mobile coverage problems for small businesses.

Research with small businesses across the UK, published by the Communications Consumer Panel in October 2009, found widespread problems with mobile coverage: 91 per cent of small business respondents have had problems with coverage and a third of them said that this was a regular experience.

The research surveyed small businesses across England, Wales, Scotland and Northern Ireland. It included businesses from a range of sectors, all with an annual turnover of under £1 million.

It found that the most common problems were 'not spots', where small business users received no coverage at all. This was experienced occasionally by 56 per cent of small business respondents, and regularly by 24 per cent. The next most common problems were poor sound quality/breaking up of sound and calls ending unexpectedly.

For businesses that rely on their mobile for work this can damage their businesses and cause real frustration. This is reflected in the fact that over half of the small businesses who have experienced problems have taken some kind of action as a result. The most popular course of action is to stop using the phone in certain situations, a strategy adopted by 38 per cent of this group. Other strategies include asking friends and family for advice (28 per cent), contacting customer services (22 per cent), purchasing a new phone (22 per cent), going back to an old phone (20 per cent) and requesting a new phone from their employer (19 per cent). Over 1 in 10 respondents have changed network as a result.

Solving the problem isn't going to be easy. The quality of coverage depends on a number of factors: whether you are near one of your provider's transmitters; whether you are using your phone inside or outside; the local landscape; and even the weather. However, this does not mean that coverage can't be improved. Ofcom is proposing to conduct research to investigate the causes of coverage problems in detail. This research will look at coverage on trains, along major road routes and in areas with limited or no coverage. The panel will be following the progress of this research closely, and will be asking Ofcom and industry to work together to use the findings to improve coverage for calls and texts.

However, any solutions will take time, so what can be done in the meantime to make sure small businesses are not stuck with a phone, and a contract, but no coverage?

Good information could help. Many mobile operators provide increasingly sophisticated coverage checkers on their website. However, these have limitations. They are based on modelled data, so while they can predict the coverage you are likely to receive this does not always correspond to the actual coverage in a location - particularly if you are in a basement, or in a new building with foil clad insulation or UV reflective glazing, or if there is a hill between you and the mast. Also, they do not use the same definitions of coverage or the same methods for modelling their data, so it is not possible to compare like with like. We think there is room for improvement and would like industry to provide better, more comparable coverage information.

However, even with improvements it is never going to be possible to provide perfect information. We are therefore calling on operators to offer all their customers a try-before-you-buy service. Some operators already do this. For instance, Virgin has a 28 day satisfaction guarantee for all customers buying from their website or a Virgin store, while O2 has a 30 day happiness guarantee for fixed and mobile broadband. However, these deals are not consistent. Different providers have different returns policies, with a number having no policy at all. Some of the policies apply to mobile broadband but not to contracts for voice and text only, despite our research showing clear problems with voice coverage. And while you may be able to return if you buy direct from the provider's website, and sometimes from their store, the same deal does not apply if you buy through a third party.

This is a particularly important issue for business customers. Small businesses are more likely than ordinary consumers to suffer problems: 56 per cent of consumers experienced problems with coverage compared to 91 per cent of small businesses. Also, small businesses are not protected by consumer law, which allows those buying for personal use seven days to cancel their contract, provided they have bought online or over the phone.

The importance of mobile phones will continue to grow. As it does, it will be increasingly vital for small businesses to have the coverage they expect and need. The Communications Consumer Panel will continue to work with Ofcom and the mobile industry to make sure this happens.

The Communications Consumer Panel was established to advise Ofcom on the consumer interest in the markets it regulates. The Panel is independent and sets its own agenda. Visit www.communicationsconsumerpanel.org.uk for more information.