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Tecnotree survey reveals what makes mobile customers loyal, and what is making mobile customers churn

Tecnotree Corporation
Press Release
8 May, 2013 at 8.30 am EEST

• Argentina and Kenya have the most loyal mobile customers
• Subscribers in the UK, Brazil and Nigeria are  most likely to switch networks, citing better devices as the cause
• 4G will inject an uplift in non-communication services – with 59% of consumers seeing it as a major incentive to move operators

Espoo, Finland – Telecom IT solution provider Tecnotree today shares its analysis and comparison of mobile customer loyalty across a sample of markets in Africa, Europe and Latin America. ‘ Subscriber perspective to customer loyalty’ reveals the most loyal nations, and those most likely to switch networks.

Providing an in-depth look into the sentiment of customer loyalty in each nation, Tecnotree’s 2013 study finds that Kenya, Argentina and Germany were the most loyal mobile customers with 66%, 57% and 53% respectively, of mobile subscribers having remained with their existing CSP for at least two years. The report also highlights the least loyal mobile users of the countries surveyed, with 44% of mobile users in Nigeria, 42% in the UK and 30% in Brazil having churned in the last 12 months.

The research revealed that communications service providers (CSPs) drive loyalty via device upgrades and better tariffs, supplemented by a bundled service offering, and a broader “all of the above” tactic. Conversely, churn is primarily driven by the incentive of a better device, with better tariffs playing a secondary role. However, 4G will provide a major incentive to churn, with an average of 59% of respondents across all nine markets stating that a service provider offering 4G would be a major incentive to switch.

Timo Ahomäki, Chief Technology Officer at Tecnotree comments, “Device upgrades and better tariffs are as much about loyalty for service providers as they are for driving churn. Right now, network coverage is having minimal impact on loyalty and churn. But as service providers roll out 4G, the promise of faster download speeds will become a very appealing incentive to churn."

The research was conducted by On Device Research in February 2013 and involved surveying 2,700 respondents across Germany, Spain, UK, Argentina, Brazil, Mexico, Kenya, Nigeria and South Africa. The analysis and writing of the report was conducted by mobilesquared.

The results of ‘Subscriber perspective to customer loyalty' can be viewed in full at www.tecnotree.com/whitepapers.

Further Information
Helen Gough / Anne-Marie Lavelle at Liberty Communications: tel. +44 (0) 207 751 4444, tecnotree@libertycomms.com

About Tecnotree:
Tecnotree is a global provider of telecom IT solutions for the management of products, customers and revenue. Tecnotree helps communications service providers to transform their business towards a marketplace of digital services. Tecnotree empowers service providers to monetise service bundles, provide personalised user experiences and augment value throughout the customer lifecycle. With over 1100 telecom experts, Tecnotree serves more than 100 service providers in over 70 countries. Tecnotree is listed on the main list of NASDAQ OMX Helsinki with the trading code TEM1V. For more information on Tecnotree, please visit www.tecnotree.com.