Cable / Telecom News

Wireless carriers must ensure plans meet customers’ data needs, expectations: J.D. Power

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Telus Mobility tops for network quality across Canada

TORONTO – While Canadian wireless carriers’ investments in their infrastructure have largely translated into improved customer satisfaction with network quality, carriers’ data-hungry younger customers report experiencing a significantly higher rate of connectivity problems, according to a new J.D. Power report.

The 2019 Canada Wireless Network Quality Study measured satisfaction based on recent customer usage activities in three areas that impact network performance: calling, messaging, and data connections.  The study, which measured problems per 100 connections (PP100), includes seven wireless carriers in the East region; seven wireless carriers in Ontario; and nine wireless carriers in the West region.  Conducted online in English and French, it is based on 13,900 responses and was fielded in February-March 2019.

Overall, wireless network issues have dropped to 9 PP100 from 11 PP100 in 2017.  However, Gen Y (born 1977-1994) and Gen Z (1995-2004) customers, the heaviest users of mobile data, are experiencing a significantly higher rate of connectivity problems than customers in other age groups. Gen Y and Gen Z customers are the most prolific users of plans over 5GB (46% and 48%, respectively), and cite a high level of web issues (14 PP100 for Gen Y and 19 PP100 for Gen Z). This is higher than the number of issues cited by Boomers (8 PP100) and Pre-Boomers (5 PP100).

The study adds that Gen Y and Gen Z customers rate wireless provider reliability lower (5.7 points on a 1-7 scale), compared with Gen X (5.8), Boomers (6.1) and Pre-Boomers (6.2).  Additionally, 40% of Gen Z customers cite price as the main reason for ending their relationship with a carrier.

“Wireless network quality is an important brand promise,” said Adrian Chung, director of the technology, media & telecom practice at J.D. Power in Canada, in the report’s news release. “When customers experience connectivity issues, it negatively affects their perception of reliability and erodes trust. While younger customers tend to be more price sensitive, they are heavier users of data. Wireless carriers that want to reduce potential churn should focus on understanding the data problems experienced and better align plans to meet the data needs and expectations of these customers.”

In the East region, defined as New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island and Quebec, Telus Mobility ranked highest in network quality with 7 PP100.  Bell Mobility and Videotron were second in a tie with 8 PP100.

In Ontario, Telus Mobility was tops with 8 PP100, followed by Bell Mobility with 9 PP100.

Telus Mobility was also first in the West region of Alberta, British Columbia, Manitoba, Northwest Territories, Nunavut, Saskatchewan and Yukon Territory with a score of 8 PP100.  Bell Mobility, Bell MTS and SaskTel tied for second with 9 PP100 each.

Additional findings include:

– From a phone to a communications hub: Younger customers, especially Gen Y and Gen Z, use their mobile devices as a communications hub rather than just as a phone. Gen Z customers sent/received an average of more than 90 text messages within a recent 48-hour span, compared with only 12 text messages sent/received by Pre-Boomers. Also, Gen Z and Gen Y customers use apps on their devices three to six times more frequently (24.9 and 20.4 times, respectively) than Boomers (7.2 times) and Pre-Boomers (3.7 times).

Data suckers: Among younger customers, the changing function of smartphones led to an increase in the number of apps they host on their devices which has nearly doubled with each generation through Gen Y. The most common apps used by Gen Y and Gen Z are instant messaging (72% vs. 78%, respectively); social networking (70% vs. 75%); listening to music (65% vs. 81%); and mobile payments (43% vs. 46%).

Need for speed: Younger customers have the highest satisfaction with the speed of their devices. Among Gen Z customers, 13% say data speeds are higher than expected, followed by Gen Y (9%), Gen X (7%), Boomers (7%) and Pre-Boomers (2%). This is due, in most cases, to younger customers owning newer phones with improved technology.

www.jdpower.com