Gurgaon/New Delhi, November 4, 2007:  Overall satisfaction among wireless mobile users has increased by approximately one percentage point to 92.6% during 2007 as networks continued to improve services and streamline processes, according to IDC’s India Mobile Services Usage and Satisfaction Study 2007. However, customer care suffered due to large increase in subscriber additions.

Only three of 11 service providers covered – Aircel, BPL Cellular and Hutch/Vodafone – were able to meet the 95% satisfaction level set by TRAI, as compared to only one service provider in 2006 (Spice) and two service providers in 2005 (Idea and Aircel).

Commenting on the study, the 3rd in a series, Kapil Dev Singh, Country Manager, IDC India said, “Indian telecom operators have done a good job of satisfying customers continuously over the last three years. But this may not continue if the government does not address the issue of spectrum availability speedily. Though at present it is considered a core technology issue customers will soon start complaining about network quality.”

These findings are a part of IDC’s third India Mobile Services Usage and Satisfaction Study conducted on a sample of 4,760 mobile users spread across 18 major cities from a representative set of category A, B and C telecom circles. 

Customer Churn an Area of Concern
Despite an improvement in overall satisfaction, customers were quick to jump at a better offer from a competing network, the study showed. 

This trend has grown in the last one year and is more pronounced in B and C telecom circles. The number of loyal customers has gone down and the number of disloyal and opportunist consumers has risen from 18% in 2006 to 20% in 2007. It may increase further when the long awaited number portability is finally introduced in India, the IDC India survey adds.

Commenting on this trend of shifting loyalty among mobile users Shailendra Gupta, Senior Manager, Consumer Research, IDC India said, “Mobile service providers should not let go of their brand’s inherent perceived strengths and continue to devise innovative pricing schemes and offers. With the total number of mobile subscribers in India set to double to 500 million by 2010, the pie is big enough for everyone.” 

Of India’s two oldest telecom players, the BSNL and MTNL, only MTNL achieved higher than industry customer satisfaction level at 92.8%. Two of the largest telecom players, Tata Telecom and Reliance Communications (both GSM and CDMA) lagged behind the industry average in customer satisfaction.

Table 1: ‘Top Three’ in Customer Satisfaction – 2005, 2006 and 2007

Year	Aircel	Hutch	BPL
2005	97.0	89.6	92.4
2006	93.6	94.4	NA
2007	96.5	94.7	94.8

Figure 1: Customer Satisfaction Levels with Service Providers – 2007

Source: IDC's India Mobile Services Usage and Satisfaction Study 2007

Customer Care Emerged as a Sore Point
According to the survey mobile users were unhappy with the customer care services provided by the networks. The average waiting time to speak to a customer care executive was 5.7 minutes, the highest across the last three years. Mobile users of all service providers, without an exception, saw an increase in their waiting time to reach their customer care executive this year.

The key issues that bothered Indian customers included the ‘Knowledge level and promptness of the Customer Care Executive (CCE)’ and the ‘Final solution provided by the CCE’.

Billing, which was an area of concern in the last two years saw an improvement of almost 10 percentage points from 85.5 in 2005 to 94.2 in 2007. Almost all service providers improved their billing processes.

“It appears that service providers are not upgrading their infrastructure to match their growing customer base. This needs greater attention and implementation of a well defined customer care programme is likely to benefit service providers ", Shailendra added.

Note for Editors: IDC’s India Mobile Services Usage and Satisfaction Study 2007, was conducted on a sample of 4,760 mobile users by face-to-face structured interviews spread across 18 major cities across the country from a representative set of mobile users based on category A, B and C telecom circles and across SEC classes and age groups. The sample size for a service provider was decided in accordance with market characteristics such as total number of subscribers/operator in a circle, pre-paid subscribers and post-paid subscribers. The sample distribution was done across different geographical areas of a given city to ensure proper representation.

For media inquiries, please contact: 
Sanjiv Kataria, Strategic Communications & PR
+91-9810048095, sanjiv.kataria@gmail.com 

Vishaal Bhatnagar, General Manager, IDC India 
+91-9810191634, vbhatnagar@idcindia.com