Consumer cuts present new carrier challenge

Telco’s face a fresh challenge in 2010 as consumers say they will consider cutting back their mobile and fixed-line usage to save money.
A quarter of 39,000 consumers surveyed by research firm Datamonitor said they would consider cutting back spending on telecoms service, with a further 24% undecided on their future actions.
Of the 25% who said they would look into cutting their telecoms services outlay, 30% stated the reduction would come from seeking out cheaper mobile tariffs, and 24% from cutting their fixed-line voice usage.
The global survey was conducted between June and December 2009.
Datamonitor subsidiary Ovum says the results increase the likelihood of M&A activity among telcos, despite the fact that only 7.6% of consumers quizzed said they would definitely reduce the amount they spend on telecoms services.