Research Notes

Missing Persons Search: Where are the operators with high customer satisfaction

Many people are talking about the MVNOs and how they have been a driving force in changing the mobile market. Everybody has an opinion about them – some believe that their entrance on the market has had a negative influence on the mobile market, while others believe that they have had a positive influence.

At Strand Consult we have no doubt that their entrance on the market has been posi-tive for the mobile market. Although the discount mobile providers on the one hand have put pressure on the prices of simple voice and SMS services, the decreasing prices and general focus on prices has resulted in a significant increase in mobile consumption, that certainly for a great deal of that increase – together with reduced SAC –  has compensated for the general price reductions. On today’s mobile market, many MVNOs are focusing on many other areas than just competing on the price of simple telephone services.

Many believe that MVNOs – and especially discount/no-frills MVNOs do not service their customers well enough. The general attitude towards them is that their services are cut down to a minimum. At the same time many believe that large mo-bile operators like Vodafone, Orange, Telefonica and T-Mobile are best at servicing their customers and that these types of full-service operators generally give customers the best service available.

A new survey from TSN Gallup in Denmark now shows that the mother of all discount/no frill mobile providers – Telmore in Denmark has a customer satisfaction level of close to 90%, while the average level for all Danish mobile providers is 65%. Furthermore this is the sixth year in a row that Telmore is at the top of this survey. But it does not stop there. Telmore’s churn decreased from 19% in 2005 to 16% in 2007. Again this should be compared to the Danish average which is 24% – significantly higher. Furthermore, Gallup’s “commitment index” shows that Telmore has a huge 92% “commitment index”, compared to the European average of 60% and TDC Mobil’s 63%.

This puts to shame the attitude that MVNOs give customers bad service, while the large mobile operators give good service to their customers.

But we love a good challenge! If you have heard of a mobile operator that has a customer satisfaction level anywhere near Telmore’s, please do write to us here http://www.strandconsult.dk/sw52.asp Until then we will continue to believe that it is not the large mobile operators that are market leaders regarding customer service – it is the no frill/discount MVNOs like Telmore.
If you would like to learn more about how to achieve success on the MVNO market, then you should take a closer look at our latest MVNO report: How to get success in the second Generation MVNO Market . This is a 300+ page report that analyses in depth the changes currently hap-pening on the mobile market. The report is a very effective tool for mobile operators and other market players in choosing and designing the optimal mobile provider strategy. 

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