Brazilian Operators Miss Out On R$40 Billion Per Year From Premium Services
Published on: 2nd Dec 2013
Around 60 percent of Brazilians are so frustrated by unreliable mobile signals that they would pay a premium for guaranteed mobile connectivity according to a survey by CommProve.
The research also shows that operators are missing out on revenues of over R$3.4 billion per month as phone owners claimed they would be willing to pay up to R$50 per month, in addition to their existing tariff, for priority signal.
With over 56 percent of Brazilian mobile users losing signal at least three times a month, subscribers are less attracted to offerings favoured in developed markets, such as text message bundles, than high quality service. Whilst 46 percent of respondents would move operator for better signal, and 33 percent for a better phone, only 9 percent would move for a bigger text messaging package.
Dr. Lars Pedersen, CEO of CommProve comments: "These results highlight that Brazilian subscribers clearly value service and that they are willing to pay a premium for it. With premium pricing models, Brazilian operators have an opportunity to both increase subscriber satisfaction and generate new, long-term revenue opportunities. They should seize that opportunity immediately."
Interestingly for operators, 18-24 year-olds place the greatest value on their mobile access, with 92 percent of the younger generation saying they planned to shop around before renewing their contract and 56 percent claiming unreliable signal was the main reason for it. 67 percent of the valuable 18-24 group would be willing to pay extra for guaranteed coverage and improved services levels, and 56 percent would pay R$10 or more per month for better service.
Previous Story << Moody's: Korea Telecom's plan to reduce dividend is credit positive