Amazing tech usage data from the UK's Ofcom that will affect how we consume the Olympics #2012

Countdown to London 2012

According to Ofcom research published this week, the UK's communications industry regulator, it is anticipated that at least 38 million adults in the UK will tune into the London 2012 Olympic and Paralympic Games on TV.

One quarter of working people plan to follow the Games while at work, with 25% planning to watch or listen to the Games during office hours.

More than half (53%) of adults agree technology makes accessing coverage easier, with around one fifth (19%)  likely to follow developments on many different devices.

Social networking sites will also be used by some viewers to keep tabs on results and medal tables, with over one quarter (26%) of respondents claiming that social networking sites will make following the Games easier.

Beyond the Games

Text-based communications are surpassing traditional phone calls or meeting face to face as the most frequent ways of keeping in touch for UK adults.

The average UK consumer now sends 50 texts per week - which has more than doubled in four years - with over 150 billion text messages sent in 2011. Almost another ninety minutes per week is spent accessing social networking sites and e-mail, or using a mobile to access the internet, while for the first time ever fewer phone calls are being made on both fixed and mobile phones.

Teenagers and young adults are leading these changes, increasingly socialising with friends and family online and through text messages despite saying they prefer to talk face to face.

96% of 16-24s are using some form of text based application on a daily basis to communicate with friends and family; with 90% using texts and nearly three quarters (73%) using social networking sites.

Talking on the phone is less popular among this younger age group, with 67% making mobile phone calls on a daily basis, and only 63% talking face to face.

Traditional forms of communications are declining in popularity, with the overall time spent on the phone falling by 5% in 2011. This reflects a 10% fall in the volume of calls from landlines, and for the first time ever, a fall in the volume of mobile calls (by just over 1%) in 2011.

The change in communication habits reflect the rapid increase in ownership of internet-connected devices, such as tablets and smartphones - making access to web-based communications easier.

UK households now own on average three different types of internet-enabled device - such as a laptop, smartphone or internet-enabled games console - with 15% owning six or more devices.

The full Communications Market Report website including breakdowns by medium and UK region.

The power behind social media

The power behind social media is not the tools. It’s not the hash tag, the update, the Zuckerberg or the follow. It is the evolving way we are approaching collaboration.

eBay created trust mechanisms such as public feedback that played an important role in its growth. But fundamental to its success, and the success of all sorts of crowd purchasing platforms is the diminishing trust of big brands to offer a fair deal, and consumers own self interest driving them to collaborate in groups with people they largely know nothing about.

Self interest is driving us to work together to achieve a better deal. Not solving our community's needs, although for some of us that is an important outcome. Adam Smith understood this in 1776, Ricardo in 1809 and more recently encapsulated in popular culture with Gordon Gheko's proclamation that 'greed is good.'

We know inherently that the crowd is wiser than us, that's why we naturally follow it. But we follow it for us, not for the crowd's sake. Social media and the commerce that has become associated with it comes from our own self interest. Which when you think about about it, and the language social media 'experts' use, that is quite an irony.

Is your Exec becoming obsolete?

A friend of mine asked me how they should engage their senior leadership team is social networking. I said tell them that ‘if they don’t get on board they will be obsolete in 5 years.’

This is of course is as ridiculous as the claims made around the turn of the century about e-commerce. It has in fact taken 15 years for e-commerce to threaten high street spending. There is no such thing as a high street retailer or supermarket without an integrated e-commerce infrastructure.

Before e-commerce, the same was said of corporate e-mail.  IT Director’s, as they were called then, said ‘why would every member of staff in say a bank or insurance company need access to email?’

I once said the same about text messaging (SMS). ‘Why would I need a mobile phone that can send a text message when I have a perfectly good pager service?’

New communications tools come, and they go. The issue for executives that want to lead well performing organisations is not whether they should engage with new technologies, but how, and social media is no exception.

I don’t know an Exec that doesn’t use email, text messaging or e-commerce, even if it’s only to collect an e-ticket at the airport. Social media is more disruptive to organisations than any technology to date, because it is social. Social media is about people and groups of people interacting more openly than ever before, while the boundaries of the organisation blur.

So I do think that Execs that don’t get social media will become obsolete, if not in this decade, then the next one.

A New Stimulus: Quantitatively ease my mortgage

As we are coming up to budget time and the UK economy continues to go to hell in a hand cart, I thought I would take a little time out to help Chancellor of the Exchequer, Gideon Osborne, get the economy going again while simultaneously winning some votes. I’m not going to list all the economic leavers, or opine on the theory of fiscal and monetary policy. 


I am suggesting just one way to put money in the pockets of families that will make a significant contribution to increasing aggregate demand and getting our economy moving again.

It’s a kind of quantitative easing that will not just work, but actually feel like it’s working.

A large number of my colleagues were just told they are likely to be laid off. As relieved as I am not to be directly impacted, I was laid off in December 2009 and also faced something similar about 18 months before that. But despite this, like many other white collar middle class homeowners I have done everything I can to make sure my mortgage is paid. We have sold our second car and settled for short, domestic holidays. We have scaled back every utility and every luxury. We don’t go out, we and we make do and mend.

While my gross salary has remained static since 2008, I estimate my net salary as reduced by around 12% in real terms. We have lost our family allowance and we have paid our increased direct and indirect taxes. Our credit rating is intact and we continue to be net contributors to the exchequer.

So now it’s time for our payback, and it won’t cost the Government a penny. The mortgage I have worked so hard to cover is provided by RBS. The bank that the Government holds around 80% of the shares on my behalf.  I have a fixed rate mortgage at around 5% because when we took it out we were curiously optimistic about the economy and thought interest rates could rise. I know, not the best decision with hindsight. If we were on the bank’s tracker rate we could be saving around £300 per month.

That’s around £7,000 per annum in gross salary we could have made available to us. However, to access this deal I would have to pay more than that in penalties. Now RBS and the other virtually nationalised bank, Lloyds HBOS, represent about 40% of the UK mortgage market. So imagine the aggregate demand that could be generated if people like me could simply remortgage, keeping the same term, but at a lower interest rate and without the penalties?

Now I’m not completely naïve, I know there are counterparties to my mortgage holding bonds etcetera. But it strikes me that buying their paper is a wholly more popular and real use for the £50 billion the Bank of England has just spunked on buying back Government debt form pension funds that they call quantitative easing.

And it doesn’t have to stop with these two banks. If the Government hadn’t shored these institutions up Barclays and HSBC would have gone the same way. I can’t think of a better way to offset the unpopularity of the bonuses of all banks than by rewarding those people that have done everything they can to keep their heads above water in one of the toughest economic environments for several generations.