Nearly half (46%) of Australian mobile subscribers have switched mobile services providers in the past three years, according to a new study released today by emerging technology analyst firm Telsyte.
The high levels of churn have been driven by customer dissatisfaction, but also a range of attractive deals available through Mobile Virtual Network Operators (MVNOs).
Nearly half of those that switched providers during the last 12 months have landed with MVNOs. This includes consumers who have switched from the carriers and between MNVOs. Telsyte believes this trend is set to continue as main MVNOs continue to build scale and awareness.
“Nearly 40 per cent of mobile users are planning to or considering changing providers in the next 12 months, especially those who are already off fixed contracts,” Telsyte Senior Mobility Analyst, Alvin Lee says.
Even with more choice of mobile service provider, Telsyte research has shown 15 per cent of Australian mobile subscribers have experienced unexpectedly high mobile bills, or “bill shock”, in the past 12 months. Telsyte findings show that people who have experienced bill shock are two and a half times more likely to change providers.
“Younger age groups and iPhone users are more likely to have experienced bill shock during 2013, mainly due to the excessive usage of local data, rather than international roaming charges,” Lee says.
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.
Quality still important for customer retention
Amaysim and Telstra were the top two rated services providers (respectively) according to Telsyte’s customer rating survey covering eight key attributes, including network reliability, coverage, price, customer service, etc.
High-speed 4G/LTE continues to be a key differentiator for the carrier brands, with MVNOs having less access to wholesale 4G than older 3G/HSPA+ services. Telsyte expects 4G services to make up nearly 70 per cent of all mobile services by 2017.
Telsyte predicts the main carriers to compete with ‘family deals’, bundling of services enabled via the National Broadband Network (NBN) and the arrival of new services and better user experience enabled by LTE-A (Advanced) and LTE-B (Broadcast) technologies.
The Telsyte Australian Mobile Services Market Study 2014-17 is a bi-annual publication reporting on the local mobile services industry and subscriber trends for the last eight years. The report continues the year-over-year analysis with key market data, including market sizing and forecasts as well as individual carrier and MVNO performance reviews.
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About Telsyte’s Australian Mobile Services Market Study 2014-17
Telsyte’s Australian Mobile Services Market Study 2014-17 is available to subscribing organisations and includes:
- Market sizing and forecasts including 4G and prepaid vs. post-paid SIO estimates.
- Performance review of Telstra, Optus, VHA and the MVNO segment with market share estimates and latest trends.
- Analysis of movements in the MVNO market, including subscriber estimates.
- End user survey covering service mobile provider ratings, churn, intentions and preferences.
Telsyte delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Our market leading coverage includes mobility, enterprise IT, digital media and telecommunications. Telsyte is a wholly-owned independent business unit of UXC Limited. UXC is an ASX-listed Australian IT services company and the largest Australian-owned ICT consultancy firm with over 2,500 customer organisations in the private and public sectors across Australasia. www.telsyte.com.au