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Telco Troubles? 50% To ‘Jump Ship’ 2012


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Telco toubles could mean a mass exodus in 2012.

“Misconceptions” and “feelings of hopelessness” are forcing “millions” of users to stay with their current telco despite one third being unhappy with the service they receive.

Only a (shocking) 25% of those surveyed are happy with their current mobile provider, the ‘State of the Mobile Nation’ report by Macquarie University Faculty of Business and Economics dept with support from amaysim, which quizzed 1,600 mobile consumers, found.

But those who have left their loathed carrier have saved a whopping $622 million in the process.

Aussies are in a state of ‘mobile inertia’, which is costing them $300 per year  on average.

But that tide is starting to turn as consumers are demanding better customer service and simplistic pricing.

More than 50% are “likely” to switch providers in 2012, to avail of cheaper mobile phone plans.

Under/over spend on plans, as well as dismal customer service, were two of the main reasons customers fled from their telco in the past 12 months.

However, a startling 50% still feel it is too difficult to switch providers, citing time and costs of switching over.

Dr David Gray, senior lecturer in Marketing from Macquarie University’s Faculty of Business and Economics Department  said the findings paint a dismal picture.

The Aussie market is performing significantly worse than in Europe, he warns.

“Mobile telco trust in Europe rates six out of 10. By comparison, our research shows that the Australian public rates mobile telco trust at a dismal four out of 10.”

Mobile providers need to “wake up and start listening” to their customers if they want to keep them, he added.

  “We believe that this sense of inaction is coming to an end and that in 2012 we will see the start of a surge of switchers. Changes being proposed to make life easier for the Australian mobile consumer, and the newer entrants in the market, will certainly play a key role in this changing mindset.”

And new kid on the block, amaysim, are putting it to larger rivals like Telstra and Vodafone.

“Since our launch a year ago, we’ve heard from hordes of people who are fed up and are just biding jump ship,” says Rolf Hansen, founder and CEO of amaysim.

“Even if half of the disgruntled Aussies who are thinking of switching pastures, we’ll see a big shake-up in the coming 12 months.”

 “Headline cap plan rates often aren’t worth the paper they’re written on.”