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SUMMARY
The UK mobile market is mature and fiercely competitive. Mobile players are
enticing existing subscribers to churn with handset subsidies, free gifts and
discounted deals. UK MNOs must focus on retaining their existing mobile
subscribers. This report highlights the UK mobile market conditions that are
fuelling churn, and the key loyalty programmes and reward schemes employed by
UK MNOs.
TABLE OF CONTENTS
Executive summary
- In a nutshell
- Key messages
- Ovum view
- Recommendations
UK mobile market conditions promote churn
- Fierce competition and slowing growth
- Lack of differentiation between mobile offerings
- UK MNOs need to start putting existing subscribers first
UK MNOs - three loyalty issues
- Handset subsidies reward “bad” behaviour
- Better to be a new customer than a loyal one
- Loyalty programmes are poorly communicated
Loyalty programmes
Useful tools for MNOs
Telefónica O2 UK
- Early mover with simple programmes
- O2 treats - a monthly sweet
- Other O2 loyalty initiatives
Orange
- Lots of quantity but quality is not the same
- Pay as you go (PAYG) Animal Packages
- Best plan proposition
- Other Orange loyalty programmes
Vodafone
- Targeting high-value prepaid subscribers and friends
T-Mobile
- Focused on giving credit back
3
Table of figures
- Figure 1. UK mobile connections: 2007-12
- Figure 2. UK MNOs subscriber base versus net additions in 2007
- Figure 3. Fully subsidised handsets offered by UK MNOs in May 2008
- Table 1. Orange's PAYG Animal Package with rewards
- Table 2. Speak Easy rewards
- Table 3. PAYG handset upgrade rewards
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