Global Telecoms - Customer is King Again

Synopsis

The costs of acquiring a customer have grown along with the increase in smart phone uptake. Subsidising handsets is an expensive exercise and it is has become even more important for the telcos to retain the customer once they are on board. Especially when customers today may have many services from the one provider including multiple mobile and data subscriptions, fixed lines, pay TV and broadband. It is time for telcos to remember again the old mantra that the “Customer is King” and save billions in the costs associated with replacing customers in the process.

Latest developments:

Customer experience is increasingly important to service differentiation; retaining customers in this competitive and economic environment is challenging; the cost of acquiring customers is expensive; reducing churn rates can offer significant savings to telcos.

Financial information includes:

Vodafone customer churn by key market (Europe); TeliaSonera annualised customer churn by key market (Europe); Telekom Deutschland annualised monthly customer churn by key market; France Telecom customer churn by key market (Europe); Worldwide average mobile monthly ARPU; India - mobile ARPU by technology, prepaid/postpaid/blended; India - mobile ARPU (GSM and CDMA); Mobile termination rates by region; Worldwide mobile roaming revenue.

Table of Contents

• 1. Synopsis
• 2. Introduction: global telecoms market
• 3. Insights into global mobile churn
  • 3.1 Examples of European carriers churn
• 4. Customer experience key to the future of the retail market
  • 4.1 Lack of good customer expectation in telecoms market
    • 4.1.1 Insights in global mobile ARPU
  • 4.2 Global mobile termination
  • 4.3 Global mobile roaming
• 5. The retail market needs to lift its game
  • 5.1 Under-investment in customer experience
  • 5.2 Very little service differentiation between players
  • 5.3 New sectors are entering the retail market
  • 5.4 New approach needed, not a fix of broken systems
  • 5.5 Cost transparency: the single most important issue in the telco market
  • 5.6 Solution: high quality data and analytics
• 6. Related reports

• Table 1 – Worldwide telecom statistics at a glance – 2012
• Table 2 – Vodafone customer churn by key market (Europe) – 2004 - 2011
• Table 3 – TeliaSonera annualised customer churn by key market (Europe) – 2007 - 2011
• Table 4 – Telekom Deutschland annualised monthly customer churn by key market – 2009 - 2011
• Table 5 – France Telecom customer churn by key market (Europe) – 2007 - 2011
• Table 6 – Worldwide average mobile monthly ARPU – 2005 - 2013
• Table 7 – India - mobile ARPU by technology, prepaid/postpaid/blended – 2010
• Table 8 – India - mobile ARPU (GSM and CDMA) – 2005 - 2010
• Table 9 – Mobile termination rates by region – 2005; 2010
• Table 10 – Worldwide mobile roaming revenue – 2000; 2008; 2012

• Exhibit 1 – Carrier attributes churn to poor network coverage
• Exhibit 2 – Bundling services in Europe