Two-Fifths Of UK Consumers Plan To Switch Their Mobile Operator And 25% Will Do So In The Next Year, New Survey Reveals

• Price is the single most relevant factor for consumers choosing to switch mobile and fixed broadband operators across the UK and Europe.
• 67% of UK consumers refuse to pay for a 5G connection despite 21% seeing its value.

London, October 5, 2023 – The European mobile operator market remains highly competitive with over a third (40%) of the UK planning to switch mobile operator and 25% of consumers intending to do so within the next year, according to a new study by global management consulting firm Oliver Wyman. This switching trend resonates across Europe with 44% of users surveyed expressing their readiness to make the move.

A new report launching today, "Telco: Mobile and Fixed broadband connectivity", analyses the responses from Oliver Wyman’s Global Annual Consumer Survey, in which 7,000 European consumers from in the UK, Spain, France, Italy and Germany were surveyed about their willingness to change their mobile and fixed broadband operator as well as the main drivers for making this switch. The study dives deeper into the complicated landscape, examining influential factors in consumer decisions, 5G adoption and the shift towards fiber connectivity.

In the UK, young adults under the age of 35 are leading the trend and are more likely to be inclined to switch their mobile service provider, at 53%. In contrast, individuals aged 55 and above display the greatest brand loyalty among all the European countries included in the survey, with 68% of respondents expressing their reluctance to change providers.

When asked to rank the main reasons for switching, UK consumers identified price as the number one reason followed by data allowance and network performance/speed.

Mobile churn: Fluxes traditional telcos vs. low-cost operators

The survey reveals a consistent migration to low-cost operators from traditional telcos across all countries surveyed. Low-cost operators show balance penetration across age segments which is exceptionally strong among those aged 55 and above in the UK and Germany.

The majority of European intentional “churners” (customers who have terminated or discontinued their mobile service with one provider and switched to another) are currently with traditional operators and only 37% have low-cost tariffs. 53% claim to be considering switching to low-cost players.

Jeff Youssef, Partner, Communications, Media and Technology, Oliver Wyman says: “With many consumers planning to switch providers and the rise of low-cost operators, the UK telco market’s competition is heating up. Price is driving the switch as consumers become more mindful of costs with cost of living pressures. Successful operators will be the ones who can differentiate their offerings as consumer preferences evolve.”

Fixed broadband services

Despite the willingness to change the mobile operators, the majority of Europeans (58%) do not plan to change their fixed broadband provider. The UK sits slightly higher than the European average, however, with 45% of consumers planning to switch their provider.

The reasons for switching are similar to mobile operators, with price identified as the main reason for switching followed by speed and reliability.

5G and FTTH as evolution in mobile and fixed broadband

Only 37% of Europeans are willing to pay a little more on their monthly mobile bill to enjoy a 5G connection.

Out of all countries surveyed, Italy is the country with the most users (43%) willing to pay a little more to enjoy 5G and almost half of French (48%), British (46%) and German (44%) consumers say they see no value in having a 5G connection. Furthermore, the UK is the least likely out of all European countries surveyed to pay for a 5G connection at 67%. The majority (61%) of UK consumers who are willing to pay a little more for 5G would accept only 0-5% more on their annual bill.

Survey participants were also asked about the installation of fiber in their homes which resulted in disparate results across Europe. Spain and France are the most advanced European countries in terms of fiber deployment with 95% of Spanish homes and 85% of French homes having FFTH availability (Fiber To The Home). In contrast, Germany and the United Kingdom are the least advanced in the use of this technology with 38% and 47%, respectively.

As a result, 68% of French respondents who do not have FTTH say they are planning to install it in the next 12 months. In the case of Spain, 65% of the participants are planning to make this improvement, but only 37% of respondents from Germany will upgrade to fiber next year.

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About the survey

As part of its Global Consumer Survey, Oliver Wyman surveyed 7000 consumers across Europe on their mobile and broadband preferences. The countries surveyed includes the United Kingdom (2,000), France (1000), Germany (2000), Italy (1000), and Spain (1000).

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.