MNP (Mobile Number Portability), the long awaited service which allows mobile users to shift from one operator to another, may soon be here. While MNP is good news for the end user, it may be far from so for mobile operators! A recent survey conducted by THE NIELSEN COMPANY to determine customer attitude towards MNO shows the following
– Almost one fifth (18%) of Indian mobile phone subscribers would change their mobile operator once MNO is introduced.
– CDMA customers are more likely to change their operator – around one in four Reliance & Tata Indicom subscribers would like to avail MNP.
– BSNL would lose as well, as close to one in five (19%) BSNL subscribers would opt for MNP.
Around 12,500 mobile subscribers took part in the survey, which was held in 50 centres across the country.
The survey looked at the following parameters:
- Network performance
- Customer satisfaction
- Customer willingness to recommend their existing operatir
- Reasons for churn and
- Reasons why a particular operator was selection by a customer
The survey conducted by The Nielsen Company also highlights the fact that high-spending postpaid mobile users and business users show a higher tendency to switch their mobile operator, once the MNP option is available to them. On the other hand, Prepaid, low and medium spend users are not motivated to switch.
Postpaid subscribers have almost double the minutes of usage compared to pre-paid subscribers and the incidence of data application usage is also higher among postpaid and high spenders. Vodafone has the highest postpaid subscriber base in India. (See Chart 1)
When MNP was introduced in the US, price/promotions were by far the leading drivers of acquisition. Ultimately the operator who leveraged the propensity of subscribers to choose based on price/promotions was successful in riding the Mobile Number Portability wave. In India, Mobile Number Portability can be leveraged by operators through smart, targeted marketing and promotions to coincide with the introduction of the facility,” continued Panchapakesan. (See Chart 2)
REASONS FOR OPERATOR SELECTION
- PRICE (39%) is the main reason for selecting an operator across all subscribers, especially among CDMA subscribers.
- NETWORK QUALITY (36%) came a close second
- PROMOTION / REPUTATION / RECOMMENDATION / CUSTOMER SERVICE – other reasons for selecting a mobile operator.
- SATISAFCTION LEVELS WITH EXISTING OPERATOR
- OVERALL SATISFIED CUSTOMERS (55%) across all operators
- NETWORK SATISFIED CUSTOMERS (48%) – greatest drop in network satisfaction seen with Airtel, BSNL and Reliance customers
- NETWORK COVERAGE SATISAFIED CUSTOMERS (46%)
- PRICE SATISAFCTION (46%) – reflects that most people are not satisfied with regards to the price they have paid for the mobile phone services to their operator.
- CUSTOMER SERVICE EXPERIENCE & QUALITY OF VOICE (all 42%)
- SIGNAL STRENGTH / VOICE & DATA TARIFFS / BILLING ACCURACY (all 41%), indoor coverage (40%), dropped calls (32%).
- Highest loyalty seen among lower socio-economic groups, older age groups, and among females.
- Circles likely to get affected with MNP: Mumbai, Delhi, UP East & West, Gujarat, Rajasthan, Andhra Pradesh, Karnataka, Kerala, and Rest of West Bengal (excuding Kolkata).
- Circles with highest levles of loyalty/retention: Chennai, Haryana, Himachal Pradesh, Punjab, UP East, Rest of Maharashtra (excluding Mumbai), Rest of Tamil Nadu (excluding Chennai), Bihar (inludes Jharkhand).