European Mobile Customers Are Willing to Pay for New Services

Among the fears communication service provider executives sometimes have is that customers will not pay for better service or new features. A new survey of 2,500 mobile subscribers by Amdocs, including mobile consumers in five European nations suggests subscribers are willing to pay for an improved customer experience and new services.

Fully 90 percent of Russian subscribers indicated they are willing to pay higher premiums to receive the products and services they want.

Only 30 percent of subscribers from all of the surveyed countries said they would be unwilling to pay for additional services.

Connectivity and the ability to make mobile payments were cited by European consumers as the top reasons they would increase their mobile usage. Subscribers also expressed a willingness to pay a
premium for the ability to consume all services from any device and for a single data bundle option.

Forty-three percent of respondents from all five European countries viewed connectivity as the most important industry development of the next decade.

Fifty-two percent of surveyed Russians and more than half of the Germans felt connectivity and synchronization between all devices would be the most important development of the next 10 years, and
almost 50 percent of German end users felt that the connected world would encourage them to increase their mobile usage.

In the U.K., more than 70 percent of respondents cited connection to other devices as the first or second most influential factor in increasing their mobile consumption.

European respondents chose improved network quality as the service they would be most likely to pay a premium for and 46 percent said this is the aspect they would most like to change or improve about their current mobile reality.

Users in the United Kingdom are most likely to pay a premium for increased network quality (39 percent) and 50 percent of surveyed consumers in the United Kingdom cited network improvements as their top concern, reflecting a growing reliance on access to mobile communication and information wherever they are.

The survey also included subscribers in France, Germany and Sweden.

As with all such surveys, there often is a difference between what consumers ay they will do, and the ways they actually behave.

Still, as with any product, the notion that customers will not buy new features, products or applications can be wrong. Whether they will, or will not, depends on the value of the innovations and the cost of using those new innovations.

Nobody seems to think "paying" is an issue with iPhones, iPads or virtual goods used in online games. What service providers must do is what all suppliers must do: create more compelling products.

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