Study on reason's people switch carriers - Network Coverage main reason

[Fire14]

Subscribers Switching Carriers to Gain Better Network Coverage

ComScore Networks has released a comprehensive report on the behavior and attitudes of US wireless phone subscribers. The first in a two-part series on the wireless industry, this report is based on a survey of U.S. consumers who use a wireless phone and analyzes consumers' satisfaction with wireless carriers, carrier switching behavior and usage of wireless features that go beyond voice communication, including wireless Internet.

According to the study, consumers are growing ever more attached to their cell phones, with 14 percent reporting that they no longer subscribe to landline phone service, and 33 percent strongly agreeing they "feel lost" without their cell phone.

Consumer loyalty and satisfaction among wireless subscribers are clearly related. According to the study, only 6 percent of respondents who were highly satisfied with their carriers stated that they were likely to switch carriers at the end of their contract. In contrast, 76 percent of respondents who were highly dissatisfied with their carrier were likely to switch. Furthermore, 44 percent of the highly dissatisfied respondents were very likely to switch carriers prior to the end of their contract, signifying that the deterrent effect of penalty fees only goes so far. Not surprisingly, high satisfaction strongly correlates with the likelihood to recommend a carrier to a close friend or family member. Eighty-eight percent of those who were highly satisfied indicated a high probability to recommend their current carrier.

Can You Hear Me Now? "Better Coverage" Primary Reason for Switching Cellular Carriers

Switching to one's current cellular provider was most often prompted by a desire for improved network coverage, with 27 percent of respondents stating "better coverage" as their primary reason for switching. In fact, coverage was the most often cited reason among subscribers of each carrier, with the exception of T-Mobile customers, who stated "lower prices" as their top reason for switching. Across all subscriber groups, "lower prices" was the second most frequently cited reason for swapping plans (14 percent), followed by switching to a friend/family members' carrier (13 percent).

Primary Reason for Switching to Current Cellular Carrier

(Among Respondents Who Previously Subscribed to a Different Carrier)

Reason - Percent of Subscribers

Better Coverage - 27%

Lower Prices - 14%

Friends'/Family Members' Carrier - 13%

Better Minute Level Plans - 9%

Plan Features - 9%

Promotional Offer - 8%

For a Specific Phone - 4%

Other Reason - 16%

Wireless Users Expanding Beyond Voice Communication

Today's wireless users are evolving their use of their cell phones beyond mere verbal communication, with many now subscribing to services that enable alternate forms of communication. Half of all wireless users (50 percent) subscribe to text-messaging, while 30 percent use their wireless phones for e- mail, 22 percent use instant messaging, and 15 percent use multimedia messaging.

Percent of Wireless Users Subscribing to Stated Services

Feature - Percent of Users

Text Messaging - 50%

E-mail - 30%

Instant Messaging - 22%

Multimedia Messaging - 15%


"As rapidly as wireless technologies are evolving, so too are consumers' behavior patterns -- especially in terms of enhanced functionality beyond voice communications," said Serge Matta, senior vice president of comScore Telecommunications Solutions. "Non-voice means of wireless communication -- such as text messaging, e-mail instant messaging -- are increasingly important to consumers. We're pleased to be able provide the industry with insight into usage of these enhanced features, and their importance to consumers."

Consumers Access the Internet from Cell Phones for Timely Information

Increasing numbers of wireless phones and plans offer Internet access, which provides consumers with rich content and increased functionality. Most new cell phones are now pre-enabled for Internet access, with 63 percent of respondents reporting that their phone came with this option. However, only 17 percent currently subscribe to the service, indicating significant growth potential.

Wireless Users' Internet Accessibility (via Phone) - Percent of Users

Don't have Internet option/unsure - 37%

Have Internet option/don't subscribe - 34%

Currently subscribe to the Internet - 17%

Previously subscribed to Internet option - 12%


Among consumers who access the Internet via their phones, the leading reasons for doing so are clearly related to a desire to stay connected and receive timely information. Forty-four percent cited e-mail as their primary reason for having online access through their wireless phones, while 34 percent went online for weather information, 29 percent for news, and 25 percent for sports updates. Users also connect to the Internet for cell phone personalization options, including ring tone downloads (35 percent), games (21 percent), and "wallpaper" selections (16 percent). Interestingly, 10 percent of those who subscribe to the wireless Internet option do so in order to pay bills.

Top Reasons for Accessing the Internet from a Wireless Phone

Feature - Percent of Users

E-mail - 44%

Ring Tone Downloads - 35%

Weather - 34%

News - 29%

Sports - 25%

Local Search (i.e. YP) - 24%

Game Downloads - 21%

Travel Information - 19%

Wallpaper Downloads - 16%

Directory Assistance - 15%

Financial Information - 10%

Pay Bills - 10%

Shopping - 6%




www.cellular-news.com/story/21433.php

[bobolito]

With only 4% of respondents willing to switch carriers due to a specific phone that seems to go against the perception that the RAZR helped Cingular and T-Mobile gain customers.

[dmapr]

Originally Posted by bobolito With only 4% of respondents willing to switch carriers due to a specific phone that seems to go against the perception that the RAZR helped Cingular and T-Mobile gain customers.

Unless they're talking about completely new subscriptions -- would be interesting to see the numbers there. If I understand the study correctly, it concentrated on switching only.

[Fire14]

I was very suprised at that number as well, it does seem like more people switch because of a certain phone.

[dmapr]

Originally Posted by Fire14 I was very suprised at that number as well, it does seem like more people switch because of a certain phone.

I'm pretty sure this was true in case when people switched from Blue to Orange, but these numbers are probably not included in the study.

[Matt]

Originally Posted by bobolito With only 4% of respondents willing to switch carriers due to a specific phone that seems to go against the perception that the RAZR helped Cingular and T-Mobile gain customers.

And a potential challenge for Cingular and the iPhone.

I was also surprised to see such a high number for email usage. I never see that many people using their phone for email.....

[bobolito]

Business people check their email on their mobiles all the time. They are probably a big chunk of the percentage.

[dmapr]

Originally Posted by Fire14 Subscribers Switching Carriers to Gain Better Network Coverage Top Reasons for Accessing the Internet from a Wireless Phone Feature - Percent of Users E-mail - 44% Ring Tone Downloads - 35% Weather - 34% News - 29% Sports - 25% Local Search (i.e. YP) - 24% Game Downloads - 21% Travel Information - 19% Wallpaper Downloads - 16% Directory Assistance - 15% Financial Information - 10% Pay Bills - 10% Shopping - 6%

Originally Posted by Matt I was also surprised to see such a high number for email usage. I never see that many people using their phone for email.....

Originally Posted by bobolito Business people check their email on their mobiles all the time. They are probably a big chunk of the percentage.

I wonder if that 44% is 44% of the users accessing internet on the phone or of the users total?

[jones]

Agreed Coverage is #1,
If There's No Coverage Inside a Customer's Home
and Another Carrier Do,
Customer will Likely Transfer to that Carrier.
If all Carrier Has Coverage
the Next Move is Pricing.