Subscribe

Subscribers 'fed up' with operators

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 15 May 2015
None of SA's mobile broadband operators provide close to the ideal wireless Internet solution, according to a survey.
None of SA's mobile broadband operators provide close to the ideal wireless Internet solution, according to a survey.

South African mobile consumers are fed up with service providers, but are stuck between a rock and a hard place as all operators are equally as bad.

In addition, the lack of service - which is prompting an outcry - will not see improvement any time soon as demand escalates, leading to more service issues, note commentators.

Yesterday, the SA Customer Satisfaction Index (SAcsi) released its inaugural survey looking at end-user happiness when it comes to mobile broadband providers. The results show Telkom is narrowly tops, followed by Vodacom and Cell C, with MTN the laggard.

None provided close to the ideal wireless Internet solution, and all had high levels of complaints, with a third of all users reporting they had experienced a problem in the previous six months. Most complaints revolved around the quality of the network and connection speed. MTN seemed to struggle with delivering its offering consistently and was regarded as being expensive.

This survey aligns with recent findings from the UK's MobileSquared for network and subscriber intelligence company Astellia, which found almost 50% of local participating consumers had a negative experience when it came to engagement with mobile operators.

HelloPeter.com also shows how unhappy consumers are: in the past 12 months, subscribers have logged 53 242 complaints against the mobile operators, although these figures do not strip out Telkom Mobile as a separate Telkom unit. Most complaints were levelled against SA's largest operator, Vodacom, followed by Telkom, MTN and then Cell C.

SAcsi found Vodacom, Cell C and MTN were rated much lower than expected on their ability to meet individual customer needs. "This is indeed a concern given that the expectations among customers are lower than in other industries we have measured," explains Adr'e Schreuder, founder of SAcsi and CEO of Consulta Research.

Working on it

Telkom has welcomed customer satisfaction results, saying this shows its turnaround strategy is paying off and it is on the right track to improve customer service. The telco attributes the positive findings for Telkom Mobile to network quality, product quality, value for money and quality of service.

"Improving the overall customer experience is our primary focus at Telkom and we will continue focusing the necessary time, technology, people and cash, to deliver the kind of world-class service our customers deserve."

HelloPeter.com has received over 50 000 complaints about mobile operators in the past year.
HelloPeter.com has received over 50 000 complaints about mobile operators in the past year.

Vodacom spokesman Richard Boorman says "the playing field isn't level" as Telkom has about double the amount of spectrum compared with Vodacom, but a "fraction" of the data customers. He adds it is pleasing Vodacom customers have the highest expectations in terms of quality of service and meeting the needs of consumers.

"I could be cheeky and suggest it's easy to score at the same level or higher than Vodacom if your customers have lower expectations. The big story when it comes to customer satisfaction on mobile data is network investment."

However, notes ICT commentator Adrian Schofield, network investment is not keeping up with demand, despite big commitments from operators. MTN is spending R10 billion on its infrastructure this year, while Vodacom is investing R9 billion.

Neither MTN nor Cell C responded to a request for comment.

Less for more

Ovum analyst Richard Hurst notes consumers are increasingly unhappy, especially as they are getting less for their buck. Every operator - with the exception of Telkom Mobile - recently hiked contract tariffs, inciting consumer anger.

Hurst adds the challenge is to get wireless broadband to mimic the consistency of fixed, and while operators face spectrum issues, consumers do not perceive the service to be reliable. He notes there is a lot more operators can do to improve delivery, but they will probably fall back on the excuse that there is not enough spectrum.

Antony Seeff, CEO of Tariffic, has said nearly every customer the cellphone bill analysis company speaks to, "has a horror story [to tell] about dealing with the network operators". He points to the Cell C banner saga last year - when a Johannesburg businessman had to resort to erecting a giant banner castigating the operator's customer service - as indicative of "the frustration that exists with current customer care channels".

Consumers are finally fed up, says Hurst, but have no alternative and are at the mercy of mobile providers. He notes it is ironic that Telkom comes out tops, given its failure to capitalise on ADSL in the early days led to such a rapid take-up of mobile data.

Schofield adds increased adoption of mobile broadband means the pressure from consumers will mount, but end-users will have no choice but to make the best of a "bad job". He says the fact the operators are equally bad means none of them will be forced out of business. "We will go on complaining.

How the operators stack up

Measured companies

Sample (n)

SAcsi score

Point difference from industry average

Position relative to industry

Cell C

202

66.8

-0.4

On par*

MTN

308

64.5

-2.7

Below par*

Telkom Mobile

260

70.4

3.0

Leader*

Vodacom

442

67.4

0.2

On par*

Source: SAcsi

Share