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Northern Ireland Communications Market Report: Northern Ireland Research Document Publication date: 18 July 2012 Introduction Welcome to Ofcom’s annual review of communications markets in Northern Ireland. This report gives an overview of the region’s communications markets, examining availability, take-up and consumption of the internet, telecommunications, and broadcasting services, and comparing the findings with other nations and the UK as a whole. This year’s report shows that consumers in Northern Ireland are becoming increasingly technology-savvy, with around one in ten now owning a tablet computer such as an iPad, and eight per cent owning an e-reader such as a Kindle. A third of adults now use their mobile phones to go online, reflecting a big increase in the ownership of smartphones – 34% of adults now own one, up from 21% a year ago. Around two-thirds of homes in Northern Ireland have a fixed-line internet connection, which is lower than the UK average of 76%. However, the region is well placed to benefit from significant investment in this area. The Department of Enterprise, Trade and Investment (DETI)-funded Next Generation Broadband Project, completed in March 2012, has enabled Northern Ireland to have the highest availability of superfast broadband services in the UK. Ofcom estimates that 94% of homes in Northern Ireland had access to superfast broadband services by March 2012, compared to a UK-wide figure of 60%. Our research shows that the internet is having an increasing impact on the lives of consumers. Among internet users, nearly three-quarters use it for shopping, while two-thirds use social networking sites. In total, nearly half of all adults in Northern Ireland use social networking sites (either on a PC or mobile phone), including Facebook and Twitter, marginally behind the UK average (52% of adults). With an eye on digital switchover in October this year, our research shows that digital TV ownership stands at 91% of all homes. Last year’s increase in satellite TV customers has been maintained, with take-up of these services stable at 51% - significantly higher than the UK average (41%). And Northern Ireland continues to have the highest proportion of TV households with pay TV (cable and satellite); at 63% compared with the UK average of 58%. In nations news, UTV’s early evening news bulletin continues to attract more viewers than the BBC equivalent, one of only two ITV regions where this is the case. This is the first Communications Market Report to include research on Post. It shows that 30% of adults in Northern Ireland say they prefer to send emails rather than letters whenever possible. However, one in five say they would feel cut off from society without the postal service. In research carried out for this year’s Communications Market Report, the problem of inadvertent roaming has once again been highlighted. This occurs when a mobile phone user in one country roams onto a signal from another and in doing so, incurs international call charges. This particularly affects people living in border areas. According to the latest research, 86% of mobile customers in border areas claim to have experienced mobile roaming, and one in six say they experience the problem every day. Potentially, this is a problem for 190,000 consumers in the border areas. This report highlights the key stories of take-up and use of communications services, but we are also publishing the full results and charts in a searchable resource. This can be found online at www.ofcom.org.uk/cmrnorthernireland . 1 Contents Introduction 1 Northern Ireland: setting the scene 3 Key facts about Northern Ireland 3 1 Northern Ireland’s communications market 5 1.1 Introduction and key findings for Northern Ireland 5 1.2 Fast facts 8 1.3 Communications services during the economic downturn 9 1.4 Inadvertent roaming research 13 2 Television and audio-visual content 21 2.1 Recent developments in Northern Ireland 21 2.2 Digital television take-up in Northern Ireland 22 2.3 Ownership of high definition and smart TVs 24 2.4 Broadcast television viewing 25 2.5 TV programming for viewers in Northern Ireland 30 2.6 PSB television quota compliance 34 2.7 Irish-language programming 35 3 Radio and audio content 37 3.1 Recent developments in Northern Ireland 37 3.2 Radio service availability 37 3.3 Digital radio set ownership 38 3.4 Patterns of listening to audio content 40 3.5 The radio industry 42 4 Internet and web-based content 43 4.1 Broadband take-up 43 4.2 Internet-enabled devices 44 4.3 Internet use 46 5 Telecoms and networks 49 5.1 Recent developments in Northern Ireland 49 5.2 Availability of broadband services 50 5.3 Mobile coverage 53 5.4 Service take-up 55 5.5 Satisfaction 57 6 Post 59 6.1 Introduction 59 6.2 Sending and receiving post in Northern Ireland 59 6.3 Use of stamps in Northern Ireland 62 6.4 Attitudes towards the postal service in Northern Ireland 62 2 Northern Ireland: setting the scene Key facts about Northern Ireland Figure Northern Ireland UK Population 1.799m (mid-2010 estimate); 62.262m (mid-2010 estimate) Age profile Population aged <16: 21.2% Population aged <16: 18.6% Population aged 65+: 14.5% Population aged 65+: 16.6% Population 133 people per sq km 257 people per sq km Density Urban versus Approximately 580,000 people n/a rural live in the Belfast metropolitan area – 35% of population live in a rural area Language Approximately 170,000, or 10.4% n/a have some knowledge of Irish. Approximately 30,000, or 2%, claimed to be able to speak Ulster Scots1. Unemployment 7.3% of working age population 8.3% of the working age population Income and Weekly household income: £609 Weekly household income: £699 expenditure Weekly household expenditure: Weekly household expenditure: £482 £466 Source: Northern Ireland Statistical Research Agency; Office for National Statistics: Region and Country Profiles, Key Statistics - February 2012; Office for National Statistics: Family Spending 2011 edition. 1 1999 Northern Ireland Life and Times Survey. Research undertaken by the Ulster Scots Agency, puts the figure as high as 100,000. A note on our survey research We conducted a face-to-face survey of 3,772 respondents aged 16+ in the UK, with 508 interviews conducted in Northern Ireland. Quotas were set and weighting applied to ensure that the sample was representative of the population of Northern Ireland in terms of age, gender, socio-economic group and geographic location. Fieldwork took place in January and February 2012. Respondents were defined as urban if they lived in a settlement with a population of 2000 or more and rural if they lived in areas with smaller populations. The survey sample in Northern Ireland has error margins of approximately +/- 3-4% at the 95% confidence level. In urban and rural areas; survey error margins are approximately +/-4-6%. In addition to the survey data, this report refers to information from a range of other sources, including data provided to Ofcom by stakeholders. Tables summarising the data collected in our survey are published on Ofcom’s website. 3 1 Northern Ireland’s communications market 1 1.1 Introduction and key findings for Northern Ireland Introduction This section sets out a selection of the key facts and figures relating to communications markets in Northern Ireland in 2012, comparing and contrasting nations and highlighting changes that have taken place in the past year. Key findings from Northern Ireland Communications services during the economic downturn • Seven in ten people in Northern Ireland say they would spend less on communications services if they were forced to make cuts in spending. This compares to around half (53%) of UK adults. • People in Northern Ireland are more likely to cut spend on pay TV than on other communications services. At 30%, this is higher than the UK average (16%). • Around half of people in Northern Ireland say they will shop around for communications services in the next 12 months (52%), which is higher than the UK average (36%). They are most likely to shop around for broadband services (34%), also above the UK average (23%). • Northern Ireland adults are more likely to put off purchasing a mobile phone (77%) and carry on using the old one to save money, against half of all UK consumers. A study into inadvertent roaming in Northern Ireland This research was conducted as a follow-up to our research on inadvertent roaming in 2007, as well as to help us assess the impact of Eurotariffs and the growth in mobile data since then. • 97% of mobile customers in South Armagh/South Down have experienced inadvertent roaming, and 30% encounter the problem every day. In the East Derry/North Antrim area, three-quarters (75%) of mobile consumers encountered the problem. • Awareness of ways to help deal with the problem is low. Three-quarters (75%) of mobile users are not aware of any tariffs that might help them deal with the problem. However, of those who did know about tariffs/bolt ons/price plans, nine in ten say that these save them money. • Inadvertent roaming affects mobile phone use. Around two-thirds (67%) say that they do not go online; approximately half avoid inadvertent roaming by not making/receiving calls or sending texts. 5 TV and audio-visual content • Digital TV ownership stood at 91% of all TV homes in Q1 2012, before the completion of digital switchover in October 2012. This is behind the UK average of 98%. • 63% of TV homes in Northern Ireland have pay-TV services, slightly higher than the UK average of 58%.
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