Cable / Telecom News

Wireless network issues taint customer’s perception of carrier; fuel churn: J.D. Power

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Videotron, Telus Mobility, SaskTel rank highest in respective segments

TORONTO – As Canadians hold on to their wireless devices longer, their growing appetite for heavy data-based websites and apps is impairing the performance of wireless networks, which in turn fosters a negative brand image of their wireless carrier, according to a new J.D. Power report.

The 2018 Canada Wireless Network Quality Study measures Canada’s wireless carrier networks performance in metro and rural Canada, and provides an overview of Canadians’ wireless usage patterns, data plan preferences, and more.  Fielded in February-March 2018, the study was conducted online in English and French and is based on 13,981 responses.  It measures problems per 100 connections (PP100) and includes four wireless carriers in the East region; four wireless carriers in Ontario; and five wireless carriers in the West region.

The study found that 23% of customers have had their phone for more than two years, an increase from 21% in 2017.  Further, customers who own a newer phone (six months or less) experience fewer slow web and app connection incidents (10 problems per 100 network connections for web and 7 PP100 for app), compared to those with devices older than two years (12 PP100 for web and 9 PP100 for app).

Consumers with fewer network problems have a more favourable brand image of their wireless carrier and are less likely to switch providers compared to those experiencing more network problems, continues the study.  Specifically, 37% of consumers who experienced fewer than 4 PP100 said that they plan to stick with their carrier, compared with only 18% of those who experienced 12 PP100 or more. The former group also perceives their wireless provider as more innovative, reliable and of good value.

“Since 1 in 3 Canadians are opting for 5 GB or higher data plans to enable increased data-driven wireless experiences, wireless networks and devices are pushed to their limits,” said Adrian Chung, director of the technology, media & telecom practice at J.D. Power in Canada, in the report’s news release.  “Carriers should be mindful about this trend and the effect it has on their reputation. Network upgrades and more compelling trade-in programs for heavy users are examples of potential remedies.”

In the East region, Videotron (7 PP100) ranked highest in overall network quality, followed by Rogers Wireless and Telus Mobility in a tie (8 PP100).

In Ontario, Telus Mobility (8 PP100) ranks highest in overall network quality, followed by Bell Mobility (10 PP100).

In the West region, SaskTel and Telus Mobility rank highest in a tie with 8 PP100.

Additional findings include:

Rural Canada is more disconnected: Canadians in rural areas experience the highest number of network incidents of all types (call, text message and web browsing), with an overall score of 10 PP100, compared with only 9 PP100 in urban areas.

Younger Canadians consume more data: Gen Z consumers, (defined as those born 1995-2004), have the highest data cap plans, with 14% having a data cap of 10 GB or more. By contrast, while 37% of Pre-Boomers (born before 1946) have a small data allowance of less than 2 GB, only one-fourth of Gen Y (born 1977-1994) and Gen Z, 24% and 23%, respectively, opt for similar light-data plans.

Size of data plans on the rise: High-volume data plans are on the rise in Canada, boasting year-over-year growth. The percentage of both 5 GB and 10 GB data plans in Canada has grown from last year (25% to 33% for 5 GB or more).

www.jdpower.com