Menu
Telcos could lose half their customers: Ovum

Telcos could lose half their customers: Ovum

Analyst firm reveals finding of study on mobile operator churn

Ovum has revealed that telecommunications operators can expect to lose up to half their customers in the next 12 months as a quarter of consumers are set to switch providers in the coming year.

The claim is based on a survey of 15,000 consumers and 2700 enterprises across “15 major global markets.”

While reflecting an international churn average, Ovum consumer services director, Angel Dobardziev, said the research also highlights the significant differences in users’ churn patterns across geographies.

“For example, the survey finds that almost twice as many customers of Airtel India or LG U+ in Korea plan to churn more than the global average of 23 per cent,” he said.

“In contrast customers of Vodafone Germany or NTT DoCoMo in Japan are much more loyal, with only about one in ten indicating they plan to switch operators.”

The survey also shows that the quality of the mobile broadband experience is the leading driver for mobile operator churn; 37 per cent of consumers stated to have left or plan to leave an operator due to slow connection speeds.

Apple iPhone users proved the most likely to switch providers, and mostly to find a provider with faster network speeds.

“Being online is by far the most important thing in consumers’ digital media lives,” Dobardziev said. “When we asked consumers to rate a range of activities on a scale from ‘essential’ to ‘unimportant’, browsing the Web came top, with nearly six out of ten consumers rating it as essential. By comparison, an old favourite such as watching TV was rated by only three out 10 consumers as essential, scoring as less important than reading the news (50 per cent of consumers), reading a book (45 per cent) and listening to music (42 per cent).”

Dobardziev said that operators need to deepen their understanding on consumers’ propensity to switch, not just in their own market, but more broadly given that global trends permeate national borders.


Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags ovumVodafonetelecomVirginTelcoanalystmobileoptusTelecommunicationsTelstrabroadband

Featured

Slideshows

Kiwi channel comes together for another round of After Hours

Kiwi channel comes together for another round of After Hours

The channel came together for another round of After Hours, with a bumper crowd of distributors, vendors and partners descending on The Jefferson in Auckland. Photos by Maria Stefina.​

Kiwi channel comes together for another round of After Hours
Consegna comes to town with AWS cloud offerings launch in Auckland

Consegna comes to town with AWS cloud offerings launch in Auckland

Emerging start-up Consegna has officially launched its cloud offerings in the New Zealand market, through a kick-off event held at Seafarers Building in Auckland.​ Founded in June 2016, the Auckland-based business is backed by AWS and supported by a global team of cloud specialists, leveraging global managed services partnerships with Rackspace locally.

Consegna comes to town with AWS cloud offerings launch in Auckland
Veritas honours top performing trans-Tasman partners

Veritas honours top performing trans-Tasman partners

Veritas honoured its top performing partners across the channel in Australia and New Zealand, recognising innovation and excellence on both sides of the Tasman. Revealed under the Vivid lights in Sydney, Intalock claimed the coveted Partner of the Year 2017 (Pacific) award, with Data#3 acknowledged for 12 months of strong growth across the market. Meanwhile, Datacom took home the New Zealand honours, with Global Storage and Insentra winning service provider and consulting awards respectively. Dicker Data was recognised as the standout distributor of the year, while Hitachi Data Systems claimed the alliance partner award. Photos by Bob Seary.

Veritas honours top performing trans-Tasman partners
Show Comments