Broadband And Mobile Offers A Differentiation For Cost Conscious Consumers In Australia

PR Contact:
Yat Shum
+61 456 838 434
yat.shum@oliverwyman.com
Follow us on Twitter @OliverWyman

Sydney, May 18 2023 – New research from Oliver Wyman has revealed specific customer segments in broadband and mobile are still willing to pay more despite current challenging economic conditions.

Oliver Wyman’s annual global Telco Consumer Survey provides insights into changes in consumer preferences. It surveyed more than 7,000 respondents in six countries, including 1013 Australian respondents across states, metro and regional areas, and age groups.

“Despite current economic challenges, the telecommunications industry in Australia can still realise growth through six key opportunities,” said Felix Iblher, Oliver Wyman’s Partner and Head of Communications, Media and Technology Practice in Asia Pacific.

Consumer spending is declining, as evidenced by the stagnant number of connected devices across countries among others. In Australia, the average number of household devices remains unchanged, while the UK and Spain have the highest average number but have experienced the greatest declines.

“The findings show only 32% of Australians are likely to switch their fixed broadband and mobile provider in the next 12 months, which is lower than their European peers by 10%”, said Mr Iblher.

“Among those planning to switch broadband, 49% Australian broadband users prioritise price, which is slightly less important than for the average European. However, 24% of Australian customers prioritise reliability and 17% speed when switching providers and are willing to pay more for those features,” concludes Mr Iblher. 

“While price remains a key factor for Australian broadband users, reliability and speed are becoming more important considerations in their decision-making process. Nearly half of them plan to upgrade their broadband speed within the next 12 months, and 64% are willing to pay more for faster speeds,” said Zia Bhadiar, Oliver Wyman’s Partner, Communications, Media and Technology Practice in Australia.

“Telco operators can proactively target customers who have broadband with speeds up to 50Mbps and over 100Mbps, as they are twice as likely to pay up to 20% more,” said Mr Bhadiar.

Although there are two customer segments who are interested in upgrading their broadband speed, 34% of customers are unsure of their current broadband speed, which may present an opportunity for customer education. This group is also the least active, with only 30% planning to upgrade their broadband speed, indicating the need for more awareness and information about the benefits of upgrading.

Mobile customers exhibit a similar dynamic to broadband customers. Although the net satisfaction of mobile services is at 24%, only 30% of Australians are likely to switch their mobile service provider in the next 12 months, which is 14% less than the European average.

“Within Australia, we see consistency in consumer preferences across broadband and mobile. 87% of customers that prioritise price for broadband also prioritise price for mobile,” said Mr Bhadiar.

“When switching mobile providers, price is the primary purchasing criteria for 56% of customers but in comparison to Europe, Australians are less price sensitive. In comparison, customers prioritising price can be as high as 71% as seen in France. Service quality, which includes network performance, data allowance, and regional coverage, is more important to Australians than to their European peers,” said Mr Iblher.

-ENDS-

About Oliver Wyman’s CMT practice

Our Communications, Media, and Technology teams work globally to augment our clients’ expertise and capabilities. Our focus is on helping clients compete smartly, serve customers better and more profitably, operate faster and at a lower cost, invest more rationally, and innovate with a business purpose. We are independent thinkers who challenge prevailing views, but are committed to working hands-on as part of our clients’ teams.

About Oliver Wyman’s annual global Telco Consumer Survey

The survey was surveyed more than 7,000 respondents in six countries from 22 March - 3rd of April 2023. Out of the respondents, 1013 respondents are Australian (70% in the metro area; 30% in regional areas). The data referenced in the media release are based on respondents from Australia, UK, Germany, Spain, Italy and France.

About Oliver Wyman

Oliver Wyman is a global leader in management consulting. With offices in more than 70 cities across 30 countries, Oliver Wyman combines deep industry knowledge with specialized expertise in strategy, operations, risk management, and organization transformation. The firm has more than 6,000 professionals around the world who work with clients to optimize their business, improve their operations and risk profile, and accelerate their organizational performance to seize the most attractive opportunities. Oliver Wyman is a business of Marsh McLennan [NYSE: MMC]. 

For more information, visit www.oliverwyman.com. Follow Oliver Wyman on Twitter @OliverWyman.