More than one-third of customers have recently switched or plan to switch
Thirty-seven percent of households have either recently switched providers, or plan to do so in the next 12 months. Cost savings are the leading rationale cited by recent or future switchers (41%), but other factors such as poor network quality, poor customer experience and limited-service portfolios account for more than half of reasons given for switching.
Those seeking savings are looking for a lower headline price (33%) but introductory offers, improved price promises and the opportunity to reduce overall connectivity expenditure by opting for fixed-mobile bundles also play a role. Among younger users, price promises (27%) and introductory offers (28%) are as important as cheaper monthly rates (29%), highlighting the importance of agile pricing strategies for broadband providers targeting price-sensitive users.
There is resistance to broadband upgrades while loyalty conceals inertia
With availability of fiber-to-the-home broadband increasing in many countries, service providers are keen to migrate users to higher-speed packages. However, households cite several reasons not to upgrade, led by lack of need for faster broadband (31%); uncertainty that faster broadband will deliver the reliability benefits they need (14%); and inability to afford the highest speed packages on the market (14%).
According to the study, some customers who remain loyal to their current provider are not entirely satisfied. Two-thirds (64%) of non-switching households are happy with their current provider, other reasons for staying include apathy, fear and frustration. One in 10 (12%) don’t see any benefits in switching; 10% find the switching process too complex; and 1 in 10 (10%) fear that moving could lead to inferior connection quality or customer service.
Disruption ahead as satellite and FWA gain favor
The survey shows that 27% of respondents are interested in satellite home broadband. Satellite’s perceived high costs are an important factor in stopping consumers from switching, with 43% of households believing that, compared with fixed broadband, satellite connectivity is too expensive. There is, however, greater openness to satellite connectivity as an add-on to existing mobile packages, to provide remote connectivity in rural areas: 34% signal interest for this purpose, and 31% say they are willing to pay a premium for mobile packages with direct-to-device (D2D) satellite capabilities. Younger consumers are markedly more receptive to D2D capabilities, with 46% of 18- to 24-year-olds expressing interest.
At the same time, home broadband delivered via mobile, also known as fixed wireless access (FWA), is also on the household radar: 36% of households say they would be open to dropping their fixed broadband connection if their household needs could be met by a mobile connection, with receptivity highest among 18- to 34-year-olds (45%). Across all age groups, the lower monthly cost of mobile broadband compared to fixed-line broadband is the leading trigger cited (38%).