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Telcos troubled by customer dissatisfaction, MVNOs: Telsyte

Telcos troubled by customer dissatisfaction, MVNOs: Telsyte

Firm predicts 40 per cent of Aussie subscribers will switch provider within 12 months

Forty-six per cent of Australian mobile subscribers have switched services providers in the past three years, primarily driven by customer dissatisfaction and the competitiveness mobile virtual network operators (MVNOs), according to Telsyte.

A similar figure will be seen moving forward, with 40 per cent indicating of users planning to or considering a switch within the next 12 months.

Based on its Australian Mobile Services Market Study 2014-17, the technology analyst firm also claims that within the past 12 months, half of those who have switched provided have landed with MVNOs. It expects this trend to continue as MVNOs build scale and awareness.

Bill shock continues to play its part, with 15 per cent of Australian mobile subscribers having experience unexpectedly high bills in the past 12 months, with younger age groups and iPhone users the most effected.

In a statement, Telsyte said “the propensity to switch is expected to create opportunities for all providers including Vodafone, which despite recent losses, is looking to attract customers to its new 4G network.”

Doing it right

Telsyte’s customer rating survey (which covers eight attributes, including network reliability, coverage, price, and customer services), posits Amaysim and Telstra as the top two rated service providers, respectively.

LTE services remain the key differentiator for carrier brands, with MVNOs having less access to wholesale 4G than older 3G/HSPA+ services. Telsyte said it expects 4G to comprise nearly 70 per cent of all mobile services by 2017.

Moving forward, the analyst firm predicts main carriers to compete with ‘family deals’, bundling services enabled via the National Broadband Network (NBN) and the arrival of new services and better user experienced enabled by LTE-A and LTE-B technologies.

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Tags NBNVodafoneTelstraTelconational broadband networkTelecommunicationsoptus4gltetelsyteanalyst

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