Rural Telecom Consumers Are More Loyal and Want More Services

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BOONTON, NJ. January 17, 2001:

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In the American imagination, “rural” has always been an evolving concept. As the rural landscape is subtly altered, the people living outside of the major population centers expect their telecommunications service providers to change with the times, says a new report by Insight Research.

Insight's report The Rural Telecom Consumer and Broadband Access, found that rural consumers are less likely to switch telecom service providers than metropolitan consumers.  Moreover, they are more likely to pick their local carrier to provide both local and long distance service, indicating even higher customer loyalty.  While they are less likely to own additional services such as caller ID and broadband Internet access, Insight’s survey data suggests that rural respondents, like many urban respondents, intend to purchase these services in the future.  These findings suggest a significant opportunity to market enhanced telecommunications services to traditionally under-served rural telecom consumers.

“Rural America today is home to traditional industries like farming and manufacturing, as well as the burgeoning services industry which now employs half of the rural workforce,” says Robert Rosenberg, president of Insight Research. “E-commerce companies locate their call centers, warehouses, and distribution operations in rural areas due to the lower land and labor costs.  The increasing use of data and enhanced services among this sophisticated workforce will translate into a familiarity of and desire to use similar services in the home.”

The Rural Telecom Consumer and Broadband Access presents the telecom service preferences of rural consumers, including monthly telephone service expenditures, local, long distance, and international calling habits, use of enhanced telephone features, penetration rates and interest in current technologies such as PCs, cable modems, and wireless phones. The survey respondent data is segmented by demographic factors such as ethnicity, education, and household income.

A free report excerpt, table of contents, and ordering information is online at www.insight-corp.com/rural.asp.

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Donna Savino

at Insight Research

973-541-9600