News From Telecom World

Network Quality an Important Driver for Indian Consumers in Choice of Mobile Phone Operator

Posted on: May 25, 2009

A survey by Neilsen of Indian mobile phone users has found that that most cities have a clear network-quality leader. However, no single operator has a clear leadership position in all markets and there is significant variation in network performance across individual Indian cities.

The network quality of operators is measured on three parameters – Reliability, Coverage, and Audio Quality.

“There is an opportunity for an operator to get ahead of its competition and create a nationally or regionally differentiated network position in the market by using the competitive benchmarks to guide their investments,” said Ms. Shankari Panchapakesan, Executive Director, Telecom Practice Group, The Nielsen Company. Nielsen’s Best Practice Reliability metric indicates that there is room for improvement particularly in India’s Tier I markets.

According to the Nielsen survey carried out in the Top 10 Indian cities, 42 percent of Indian subscribers rate network performance as very important for selecting their mobile operator. In fact, with 34 percent of votes, network driven choice is ahead of price driven choice. After initial selection, satisfaction with network performance is the single most important driver for shaping overall satisfaction with the operator. Over 50 percent of the variation in satisfaction levels across operators is determined by the variation in their network performance. This compares favorably with what Nielsen has seen in other markets.

“Nielsen studies across the world show rising consumer expectations from Wireless Networks, even as their calling patterns and demands from the Network increase over time. As the market grows and newer services are introduced, to retain the current high levels of satisfaction and to remain competitive, Indian operators need to be on top of the changing expectations of their subscribers,” continued Ms. Panchapakesan.

Nielsen has demonstrated that network satisfaction is a key variable in understanding the health of a subscriber base. Research has found that some operators enjoy a higher perception of their Network compared to actual performance creating a risk to their business. Conversely, the perception of network quality of some operators lags their actual network performance creating an opportunity for them to educate subscribers via advertising and seek their rightful share of network-driven acquisitions.

The India Consumer Experience Mobile Test Program

The Nielsen India Consumer Experience Mobile Test program, started in August 2008, will cover nearly 163,000 km and a population of nearly 100 million people. Voice and data reports are available for 25 cities for immediate delivery. Another 19 cities will be completed by May 2009, and additional cities may be added based on market demand.

Source: cellular news


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