Covid, EY: ‘Pandemic has increased need for connectivity’

The pandemic has increased the need for connectivity of Italians but at the same time has strengthened the concerns and fears related to digital with which operators will be called to confront. This is the photograph that returns the EY Digital Home Study, a research conducted at an international level to explore how consumers’ behaviors and attitudes towards technology, media and telecommunications services are changing1. The study also highlights the growing demand for transparency in the offer of services and tariffs by users, and reveals how today they are increasingly inclined to purchase packages that combine a fixed network offer with additional digital services. “The pandemic – says Irene Pipola, EY Partner, Head of consulting for the Tmt sector – has significantly accelerated the digitization processes in the country, leading to experience the benefits and challenges of connectivity, today more than ever even in the domestic context. Digital activities and services such as smart working and videocalls, which many of us first experienced during the lockdown, will continue to be in demand and used in the future, albeit probably to a lesser extent. However, it is important to focus on another aspect that has brought with it this digitization: the growth of online services has amplified certain fears and concerns, especially those related to possible violations of privacy and the impact of technologies on their psychophysical well-being (50% of Italians are more concerned than before about the consequences of using the internet). Therefore, faced with a high demand both in terms of quality and variety of the panel of products and services, the offer will also have to adapt with equally high standards and increasingly customized solutions “. After Covid-19, our homes will be “increasingly intelligent”: over half of Italians (54%) consider connectivity in their homes as an increasingly indispensable service, and 1/4 of users are also ready to spend More. A need that in the past months has been dictated by the need to work or study from home and to be able to keep in touch with one’s family and friends during the lockdown. The new technologies have therefore proved to be a precious ally for millions of citizens. A common trend globally but which in our country appears even more marked. In the last year, Italians have experimented with new digital services, even to a greater extent than in other countries: 32% say they have used a video call for work for the first time, compared to 20% of French and 18% of Germans. And online teaching was also a novelty for 30% of Italians, a much more robust percentage than 12% in France and 11% in Germany. Italy also stands out in the use of digital health services (23%), surpassing its two European competitors by ten points. The pandemic has therefore accelerated digitalization within the home; a process which, net of the numerous benefits, however, risks amplifying consumers’ anxieties and fears. In particular, it is the issue of privacy that is the primary source of distress among users. Thus, as many as 66% of Italians say they are extremely cautious in sharing personal information online, a figure higher than that of Germany (61%) but lower than that of France (73%), the United States (72%) and Great Britain. (71%). At the same time, more and more users say they are concerned about the impact of the use of technologies on digital wellbeing. 50% of Italians claim to pay more attention to the consequences of using the internet on their psychophysical well-being, compared to what they paid before Covid-19. 52% also try to carve out moments to spend away from their smartphone and 39% think they spend too much time in front of the electronic screens in their home. Attention to the privacy of their data is also growing, in fact, 37% are more worried than before. Transparency, especially in tariff plans, is considered the main requirement by 61% of Italians when it comes to choosing their supplier of fixed network services. Next, in the priority list, the speed of the network (59%) and the quality of the technical support (44%) follow. However, consumers struggle to perceive real differences between the services offered and for this reason the competition between TMT companies is played almost exclusively on price. Thus operators seek to expand their customer base by applying discounts through the joint sale of multiple services. A “bundling” strategy that has become increasingly common in the Italian market and towards which buyers are particularly sensitive. In fact, 25% of the interviewees already have an internet subscription that combines fixed and mobile networks, and 49% say they will soon consider this option. In addition, 52% of users believe they can obtain considerable savings through “fixed network and mobile” bundle purchases from the same operator. At the level of work and study, 35% of consumers declare themselves interested in connectivity offers complete with products and services for home working, 34% for those related to home education. As for the domestic leisure sector, 49% of the public is attentive to fixed connectivity offers with Pay TV, 30% is oriented towards fixed connectivity offers linked to fitness-health-wellness packages, while 28% is attracted by fixed connectivity proposals complete with gaming and eSports products; at the same time, the fifth generation of mobile telephony is beginning to be perceived as a valid substitute for the home network by a significant slice of consumers. In fact, 24% of respondents indicate that 5G is the main advantage of being able to use it as a primary home internet connection. Among the main benefits behind this choice are: the possibility of having a more reliable signal throughout the home, the simplicity of installation and the lower monthly costs. fixed is the most vulnerable factor that makes customer experience in this sector difficult. Still today about 1 in 4 Italians (27%) do not know the maximum speed that can be reached from their fixed connection and less than half (47%) are aware of the benefits offered by fixed network technologies. It is worth changing the fixed network operator considering the time and effort required to carry out this process, and only 36% know the meaning of the different terms used by fixed network operators to advertise the service. their suppliers through multiple digital channels, however almost half of Italians (44%) still prefer to physically present themselves in the points of sale to purchase a fixed network service, against 40% who prefer to use the digital channel. through call centers, it is confirmed as the channel most used by Italian consumers (more than 50%) for any need for contact The increase in digitization within the home is also transforming the media consumption of citizens. Families are increasingly attracted to streaming platforms and prefer them to more traditional channels. The majority of respondents (60%) believe that a subscription to a streaming service has a greater value than that of a Pay TV. A belief that in our country is stronger than in Germany (46%) and France (41%). However, there are still some critical issues relating to online platforms. In particular, 42% of users consider online advertising to be more intrusive than that broadcast on TV and as many as 39% of users between the ages of 18 and 24 say they are willing to pay an extra cost to eliminate advertisements. transmitted during streams. Furthermore, the abundance of content offered by streaming services is not necessarily seen as a strength. Indeed, for 28% of respondents it is a frustration factor that does not allow them to easily find their favorite content. Finally, 40% are convinced that they are paying too much for content they do not want or need.