Major study of 10,850 customers across Europe reveals a mixed perception of network quality and also shows that Telco operators need to do more to educate consumers on the benefits of 5G...

Dublin, 7 June 2023: The study of 10,850 mobile users across eight European countries, including 1024 in Ireland, by management and technology consultancy, BearingPoint found that whilst network satisfaction levels are high in some countries such as the Netherlands (85%), Ireland (76%) and the UK (74%), in countries such as Germany, Switzerland and Austria the view of network performance is much poorer with, for example, only 13% of German customers satisfied with their mobile network. 

Across Europe, whilst 84% of customers surveyed by BearingPoint for its Connectivity Challenge Study were aware of 5G, they do not truly understand its potential benefits and are concerned about network quality. As such, the study indicates that more needs to be done by the operators in educating consumers on the benefits of 5G and in creating compelling services that utilise the advantages of this new technology.

Of the 8 countries included in our survey, Ireland’s understanding of 5G is amongst the highest. When compared to the EU averages, Ireland demonstrates a high awareness of the benefits that 5G can bring across different categories. Irish 5G users are also at the top end when noticing the improvements in service that 5G has enabled across consumer use cases. As Irish customers understand and appreciate 5G better than most other countries covered in the report, the findings show that they are also inclined to pay a higher premium for 5G use cases compared to their European counterparts. Further efforts to increase the still low uptake of 5G services in Ireland should unlock these rewards.

Eric Conway, Regional Leader at BearingPoint for Ireland, UK, Netherlands, Sweden, Norway, Finland and Italy

As Irish customers have a clear grasp of the advantages of 5G technology compared to the other countries surveyed, the results indicate that they are more likely to pay a higher premium for 5G services than their European counterparts. Subsequent initiatives to raise the relatively low adoption of 5G in Ireland should be a source of great reward.

Eric Conway, Regional Leader at BearingPoint for Ireland, UK, Netherlands, Sweden, Norway, Finland and Italy

The study concludes that operators must adapt their market positioning to respond to the customer perceptions, and there are five interconnected points that they need to act on:

1. Customers expect robust network connectivity 5G has an important role to play in improving network quality and user experience. 4 out of 5 respondents are aware of 5G, but only 1 in 4 claim to use 5G on their smartphone.

2. To drive improved satisfaction, operators need to continue to enhance the perception around network quality. 54% of European respondents overall (76% in Ireland) are satisfied with their mobile network performance. This needs to be communicated more widely by operators.

3. The benefits of new technological advances need to be communicated effectively to customers – 5G is no exception. Despite 5G having been launched four years ago, a significant portion of users do not understand its potential benefits.

4. There is a “new network technologies” price premium, but network operators must change their approach to capitalize on it. Respondents in Ireland are willing to pay 67% more than the European average. Two categories in Ireland and Europe that are valued most are video streaming and WIFI/personal hotspot

5. Network sustainability is important to customers, but it is not yet a key driver for monetisation. It is important to 53% of all respondents that providers focus on sustainable networks, but only 25% of people surveyed are willing to change their usage habits to become more sustainable.

About the study 

For the study, BearingPoint analyzed 10,850 customers to assess their adoption of 5G and satisfaction with 5G, how they perceive mobile versus fixed networks and how they will use them in the future, and their views on network sustainability. The survey respondents, all aged 18 and over, were from Austria, France, Germany, Ireland, the Netherlands, Sweden, Switzerland, and the UK. The participants represent the average demographics of each country’s 18 and older population. 

The full study is available here.
 

About BearingPoint 

BearingPoint is an independent management and technology consultancy with European roots and a global reach. The company operates in three business units: Consulting, Products, and Capital. Consulting covers the advisory business with a clear focus on selected business areas. Products provides IP-driven digital assets and managed services for business-critical processes. Capital delivers M&A and transaction services. 

BearingPoint’s clients include many of the world’s leading companies and organizations. The firm has a global consulting network with more than 10,000 people and supports clients in over 70 countries, engaging with them to achieve measurable and sustainable success. 

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  • Madison Duffy