- Number of people likely to switch mobile operator has jumped by more than 20%*
- Global sales of smartphones now outpace sales of feature phones**
- Nokia Siemens Networks launches product, service innovations to help operators profitably address growing expectations for quality in the fast-growing smartphone market
The number of people likely to switch mobile operators is now 39% globally and has jumped by more than 20% in one year, according to the 2013 Acquisition and Retention Study Report* from Nokia Siemens Networks. The study underscores the importance of both Internet quality, which has become a deciding factor in the choice of operators in mature markets, and voice quality, which is key in other markets. To help operators address these expectations, Nokia Siemens Networks is launching a series of product and service innovations to help grow and target network capacity, simplify operations and improve the customer experience.
2013 marks a tipping point in mobile communications as global sales of smartphones outpace sales of feature phones for the first time ever**. The Acquisition and Retention Study also highlights how smartphones are changing people’s expectations of mobile services, as well as bringing technical challenges for network operators. The result is that across all markets and subscriber groups, 39% of people say they’re ready to churn, up from 32% in the 2011 study. In contrast, just 24% of mobile customers say they are completely satisfied with their operator.
The impact of smart devices on usage was most pronounced in mature markets***, where two out of three people are now active users of advanced data services****. For these customers, mobile broadband quality is a key deciding factor in their choice of operator. Voice quality remains the chief consideration in emerging and in-transition markets.
The good news from the study was that almost one-third of customers (29%) in mature markets are willing to pay more for mobile services, and 47% of respondents believe that operators should offer excellent network quality, even if they charge a higher price for it. Attractive data rates and incentive programmes, however, remain important selling points, found the study.
“Many factors affect the reasons why customers choose to stay with their operators. Globally, voice quality, network coverage and calling rate structures have the greatest impact on customer loyalty,” said Phil Twist, head of portfolio marketing, Nokia Siemens Networks. “In our upcoming portfolio launches, we are bringing enhancements and innovations to the market specifically to help operators handle the smartphone surge and most importantly, make money from mobile broadband. We see clear correlation from the Acquisition and Retention Study results that show how quality drives loyalty,“ he added.
For more information on Nokia Siemens Networks’ 2013 Acquisition and Retention Study Report, follow this link. To share your thoughts on the topic, join the discussion on Twitter using #1GBperday, #smartphone, and #mobilebroadband.
To download an infographic to illustrate reports please click this link.
About Nokia Siemens Networks
Nokia Siemens Networks is the world’s specialist in mobile broadband. From the first ever call on GSM, to the first call on LTE, we operate at the forefront of each generation of mobile technology. Our global experts invent the new capabilities our customers need in their networks. We provide the world’s most efficient mobile networks, the intelligence to maximize the value of those networks, and the services to make it all work seamlessly.
With headquarters in Espoo, Finland, we operate in over 120 countries and had net sales of approximately 13.4 billion euros in 2012. http://www.nokiasiemensnetworks.com
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Notes
*The 2013 Acquisition & Retention Study Report from Nokia Siemens Networks is based on the results of 8,700 interviews of customers in mature markets (Denmark, South Korea, Japan, UK and US), in-transition markets (Brazil, Colombia and Russia) and emerging markets (India) during the second half of 2012.
** In the worldwide smartphone market, vendors shipped 216.2 million units in 1Q13, which marked the first time more than half (51.6%) the total phone shipments in a quarter were smartphones, according to IDC.
***Based on ITU definitions of mature, in-transition and emerging markets.
****Heavy users of advanced services use at least two of the following services once a week: send/receive emails, chat, browse the Web, download or upload data files, play online games, use personalized applications, mobile payment, mobile TV, location based services and/or GPS navigation and video calling.
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