Tuesday, 22 August 2017

Brazilian operators miss out on over R$40bn per year from premium services

CommProve
Monday 02 December 13

New research released today by CommProve reveals that 60 per cent of Brazilians are so frustrated by unreliable mobile signals that they would happily pay a premium for guaranteed mobile connectivity. The research also shows that operators are missing out on revenues of over R$3…

New research released today by CommProve reveals that 60 per cent of Brazilians are so frustrated by unreliable mobile signals that they would happily pay a premium for guaranteed mobile connectivity. 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 per cent 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 per cent of respondents would move operator for better signal, and 33 per cent for a better phone, only 9 per cent 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.”

The top reasons for leaving a network operator are:

· To save money (53%)

· Unreliable signal (46%)

· Bad customer service (33%).

Interestingly for operators, 18-24 year-olds place the greatest value on their mobile access, with 92 per cent of the younger generation saying they planned to shop around before renewing their contract and 56 per cent claiming unreliable signal was the main reason for it. 67 per cent of the valuable 18-24 group would be willing to pay extra for guaranteed coverage and improved services levels, and 56 per cent would pay R$10 or more per month for better service.


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