1 dieu trends from european markets_etno
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Telecoms Loyalty and Churn
Trends from European Markets
Thierry Dieu, ETNO
Moscow, 5 December 2012
Telecoms loyalty: growing churn rate in Europe
/GSMA
Higher churn rate than for other utility sectors
Number of customers who changed operator in the past year
/GSMA
The European context
Highly competitive telecoms markets
Pro-competitive and consumer-friendly policy
Rapidly changing consumer habits/ crisis?
The European context (2)
Highly competitive telecoms markets and wide consumer choice• More than one hundred mobile network operators + mobile
networks virtual operators (Germany: 150/ France: 42/ UK: 60)*
• More than a thousand fixed voice and Internet Service providers
• Competition from alternative platforms (cable) and online platforms (VoIP)
Source: GSMA
EU Legislation encouraging competition and consumer choice
Number portability: A right of European consumers to change, in 1 working day, fixed or mobile operator while keeping their old phone number.
Contract terms: Maximum initial duration of a contract signed by a consumer with an operator will be no longer than 24 months. Operators must also offer consumers the possibility of agreeing to a contract with a maximum duration of 12 months.
Consumer information: consumer contracts must specify information on the minimum service quality levels, as well as on compensation and refunds if these levels are not met, subscriber's options to be listed in telephone directories and clear information on the qualifying criteria for promotional offers.
Consumer satisfaction elements
Basic requirements• Coverage• Security• Quality of service/ delivery
Competitive advantages• Customer care• Tariffs• Rewarding loyalty
Offers adapted to consumer trends
Bundling: Link/ access to favourite services/ contentMobility/ convergenceQuality of service
43% of EU households subscribe to bundles
Future trends
Energy efficiency
CSR
Bundling with own apps
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* Includes Orange Polska **Includes Deutsche Telekom, Hrvastki Telekom, Magyar Telekom, Makedonski Telekom and Slovak Telekom *** Includes Telefonica Czech republic
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ETNO observers:
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