Thursday, April 7, 2016

No Surprise: Survey Finds Consumers Love Zero Rated App Usage

A new CTIA-commissioned Harris Poll survey found that Americans would overwhelmingly welcome new free data options that allow consumers to access more content and services without counting against their data plan.

That should come as absolutely no surprise. What consumer would turn down a chance to use desired apps, and learn about new apps, at no incremental cost?

In fact, opponents of zero rating are virtually required to argue that “despite clear consumer and end user value,” zero rating should be banned. Why? Because it is deemed potentially harmful to some suppliers.

Almost nobody ever tries to argue the policy is harmful to users, consumers as a whole and customers.

The survey found that Millennial respondents:

  • 94 percent were extremely/somewhat likely to try a new online service if it is a part of a free data offering
  • 98 percent were extremely/somewhat likely to stay with their current provider if it offered free data
  • 94 percent were extremely/somewhat likely to use more data if it some didn’t count against their monthly data usage
  • 77 percent were extremely/somewhat likely to sign-up with a new wireless provider offering free data

FreeData_April2016_Rev_1 - Copy
Zero rating was attractive to all respondent adults as well:

  • 84 percent were extremely/somewhat likely to try a new online service if it is a part of a free data offering
  • 93 percent were extremely/somewhat likely to stay with their current provider if it offered free data
  • 85 percent were extremely/somewhat likely to use more data if it some didn’t count against their monthly data usage
  • 65 percent were extremely/somewhat likely to sign-up with a new wireless provider offering free data

Free data services help draw users to new entrants and start-ups competing with dominant mobile apps and web providers, CTIA and others argue.

Specifically, 94 percent of Millennials (18-34 years old) were more likely to try to a new online service if it was a part of free data offering.

Similarly, free data services enhance competition in the mobile services business. Some 77 percent of the Millennials said they were more likely to sign-up with a new wireless provider that offered free data, and 98 percent of the Millennials were more likely to stay with their current wireless provider if it offered free data services.

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