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"Evidence of consumers switching providers means MNOs will have to double down on promoting network resilience and building trust with their customers."
Joe Birch, Senior Technology and Leisure Analyst
40% of consumers have been with their mobile network provider for over five years, reflecting how entrenched consumer habits are with their choice of mobile network. They value consistency and predictability, and while most consumers are happy with the network fundamentals, such as network speed, MNOs should nurture this incumbent advantage, by consistently making consumers feel valued.
The obvious danger for MNOs is that mid contract or unexpected price hikes create unnecessary friction. There is already evidence of switching behaviour, and financial uncertainty continues to influence consumer decisions. This can keep many in a defensive mindset, and on SIM-only contracts longer. With a median monthly spend of £16 for those on contracts, substantial price increases can lead to bill anxiety, prompting consumers to shop around for better deals, especially from value driven mobile virtual network operators (MVNOs).
With rolling month-to-month contracts growing, now reaching 26%, this offers networks the opportunity to lock down these transient users. For incumbents, it’s important to make it easy to switch to 12- or 24-month contracts that offer comparatively better savings in the long-term. Frame this as a savvy alternative to staying unmoored and poorer value SIM-only. Competitors can also offer compelling incentives, much like banks with current accounts, to attract consumers.
The first Mintel Market Intelligence report was published over 50 years ago. Since then, we have provided our unique insights and understanding of consumers, innovation and global markets to thousands of customers worldwide. Here’s why our customers rely on Mintel:
Curious about how a Market Intelligence report comes together? We like to think of it as building a detailed puzzle. We start with individual pieces: data from consumers, market statistics, industry trends, and online conversations. Then our expert analysts add world-class human insight and industry knowledge. The pieces are assembled to reveal a clear, comprehensive picture of a market.
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Each of these four pillars provides a different piece of the puzzle. Consumer research tells us what customers think, desk research provides the factual framework, trade research offers an insider’s view, and social media analysis reveals public sentiment.
Our expert analysts are skilled in weaving these diverse data streams together. They apply a range of quantitative and qualitative analysis techniques to uncover the deeper story, connecting the dots to deliver clear, actionable insights. This comprehensive, multi-layered process is how we transform raw data into a market intelligence report you can trust to inform your most important business decisions.
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