Study: Australian mobile telcos "more hated" than banks

Study: Australian mobile telcos "more hated" than banks

Australian mobile phone providers are the new Public Enemy Number One, according to Macquarie University research.

If you've recently been subjected to shoddy mobile phone receptionconfusing data plans'free' 1800/1300 phone call fees or non-existent customer service, prepare to be utterly non-plussed: It turns out that two thirds of Australians are dissatisifed with their current telco provider, and many are "more hated" than banks. 

At least, that's according to the findings in a new poll conducted by Macquarie University on behalf of mobile service provider amaysim

"Are mobile phone providers more hated than banks? Absolutely," said Dr Steven D'Alessandro, a senior lecturer at Macquarie University who assisted in the study. "...You get some problem resolution with a bank. With telcos, this is often not the case. I think [this] is the main reason why customers are fed up."

The study, dubbed State of the Mobile Nation, comprised a 64-person focus group and a nation-wide survey of 1600 individuals, making it one of the largest of its kind conducted in this country. Its aim was to analyse the behaviors and switching attitudes of mobile phone customers in Australia (along with some good marketing material for amaysim).

The Macquarie University's survey model was based on the European Commission's Mobile Carrier Market Performance Index report, which was the first attempt to develop a generic market performance indicator (MPI).

The study found that customer satisfaction with telcos in Australia was significantly lower than Europe in the areas of comparability, trust, problems & complaints and the meeting of expectations. 

"According to the European Commission, mobile telco trust in Europe rates six out of 10," explained senior researcher and Macquarie University lecturer Dr David Gray. "By comparison, our research shows that the Australian public rates mobile telco trust at a dismal four out of 10." 

Reasons why telco customers refuse to make the switch. [Source: Macquarie University Sample of respondents n=804].

Interestingly, while 41 per cent of respondents claimed they wanted to switch providers, less than 20% had actually done so in the past 12 months. The reasons for not switching were various, including contract lock-ins (33%), an inability to properly compare deals on the market (32%) and the anticipated time drain and perceived high costs associated with switching (25%). 

However, the study found that this is set to change in 2012, with 46% of those polled claiming they were either 'likely' or 'very likely' to switch providers in 2012. 

“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," Dr Gray said.

"Australian customers are sharpening their knives," added chief investigator Dr Leanne Carter. "They're waiting for their contracts to end and they want revenge."

According to the study, approximately two million Australians switched mobile phone telcos this year, with each saving an average of $26.52 per month on their new plan.

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See more about:  phones  |  telcos  |  vodafone  |  smartphones
 
 

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Comments: 5
gnome
22 November 2011

There are some interesting movements in public opinion. We used to dislike banks, politicians and used car salespeople.

A more current take on that might suggest that lawyers and telcos now share the bottom with the pollies.



Comment made about the PC & Tech Authority article:
Study: Australian mobile telcos "more hated" than banks?
Australian mobile phone providers are the new Public Enemy Number One, according to Macquarie University research.

What do you think? Join the discussion.
kevin_watters
23 November 2011
I bet if you asked most people... they would say the real problem with telco's are the overseas call centres. They don't understand you (despite them repeating what you say to them verbatim), you can't understand them and they have apparently no ability to actually DO anything about any problems you call them with.
j876
23 November 2011
I just switched recently from Vodafone to Telstra because their coverage and quality of phone calls was terrible.

I have changed the way I purchase mobile services. I buy my own phone unlocked and outright and go on the BYO plans which are more flexible (and a hell of a lot cheaper also the phone ends up bieng cheaper). I have done the sums and I am better off. Have a look on the telco websites at the BYO or SIM only plans for yourself and calculate the cost over 24 months.

Now I can switch very easily without being whacked in the wallet and they know it too.

Also here is a tip for dissatified customers. If you are having trouble with your current provider ask to be put through to account terminations/disconnections. I found they will do almost anything to stop you walking to another Telco!

Edited by J876: 23/11/2011 10:21:46 AM
htcs
23 November 2011
Mobiles are just bad news. An unlocked phone + cheap GSM calls are the way to go. If you need internet on the go, then it is a minefield. It's a real pity that they shut off CDMA which was 9c/min. :(
ory_zm
23 November 2011
There are so many good options now for BYO... If you don't mind Optus network than TPG caps are ridiculous ($550 credit, 1.5GB data for $18), and personally I even find the Telstra prepaid caps reasonable ($40 for $550 credit and 1gb of data is my sweet spot) given the speed and coverage.
Seeing as a smartphone still has a good resell value when you want a new one, it really turns into a no brainer...
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