Estimating the Value of Mobile Telephony in Mobile Network 'Not-Spots'

Background

Over the past decade mobile phone ownership and usage has increased substantially. As of early 2014, around 94% of households own at least one mobile phone, and approximately 99% of households are able to access 2G (voice and text) services. However, despite this high level of coverage, around 80,000 premises in the UK are located in areas without mobile phone coverage – referred to as “not-spots”.

This study, undertaken for the UK Department for Environment, Food and Rural Affairs (Defra) and the UK Department for Culture, Media and Sport (DCMS), uses a mix of qualitative and quantitative methods to examine the benefits of eliminating mobile not-spots for residents and businesses in these areas, and for tourists and other local visitors to these areas.

Research Goals

The key objective of this research was to estimate the social, economic and environmental impacts associated with eliminating mobile not-spot areas in England.

We designed a research approach using a mix of qualitative and quantitative methods to estimate of the value of mobile telephony in mobile network not-spots. This approach was both desirable, and necessary, to provide evidence on:

• The value to residents and businesses of obtaining coverage on existing networks
• The benefits to tourists and other visitors who visit current not-spot areas;
• The value to individuals of improvements to emergency responses;
• The improvement to business productivity and/or profitability; and
• Social or community benefits resulting from improved mobile connectivity.

Methodology

Our research approach for estimating the value of eliminating not-spots included a mix of qualitative and quantitative methods. At the core of the methodology was a discrete choice experiment to quantify the value of eliminating not-spots for key population groups.

The information provided from this experiment was supplemented with other background information collected in a survey and with qualitative research conducted with key population groups impacted by not-spots.

Findings

• More than 97 per cent of residents of and local visitors to not-spot areas owned a mobile phone for personal use, and more than 85 per cent of those who ran businesses from home owned a mobile phone. A main reason cited for having a mobile phone was to deal with emergencies.
• A substantial proportion of business respondents saw being located in a not-spot area as a drawback, with about half of businesses reporting negative impacts on profit, revenue and productivity.
• Residents reported being willing to pay £12 per month (+/- £4.10 at 90 per cent level of confidence), and businesses around £20.90 per month (+/- £11.50), to avoid having to travel to get a 2G mobile phone signal of the same quality as that currently available to other areas nearby. The further distance people reported having to travel to get a signal, the greater their willingness to pay for local connectivity.
• A key interpretation of the research is that the availability of mobile services may affect the long-term sustainability of rural communities and could be an important factor in ensuring their economic diversity.
• Some younger respondents indicated that a lack of mobile signal makes a place less desirable to live in. Almost all respondents felt that improved mobile reception is a positive thing for the whole community. Various reasons included the value of mobile connectivity for those seeking employment, helping people to manage their time better, reducing people’s anxiety about being out of contact, and helping businesses to collaborate.

Publications

Research Team

Charlene Rohr
Hui Lu
Peter Burge
Alison Grant
Accent