Customers vote against mobile phone network giants

Customers vote against mobile phone network giants

Virgin Media has been rated 'Best Network' amongst pay monthly customers, while Tesco Mobile comes top for pay as you go. It is interesting to note that both Virgin and Tesco are virtual network operators - which means that they do not have their own network, but 'piggyback' on those belonging to older and more established companies instead.

The Winners

Virgin Media swept the board in the pay monthly category, winning six out of the nine awards, including 'Best Value for Money' and 'Best Customer Service'.  Since entering the market in 1999, Virgin Media has offered consistently cheap line rental, first class customer service and a user-friendly website.  Although it does not always have the most sought-after handsets, Virgin has secured exclusives that are out of the reach of the network giants, as well as some interesting initiatives, such as teaming up with Nokia on V Festival phones.  

Tesco Mobile won five pay as you go categories, including 'Best Value for Money' and 'Best Choice of Handsets'. Tesco Mobile has also made a determined, aggressive push to become a major industry player since it launched in 2003. As you would expect from the supermarket brand, its key selling point has always been value and it has managed to undercut the competition with an impressive range of affordable handsets, whilst also offering supermarket-style incentives, including Clubcard points.

See the full results of the Mobile Phone Customer Satisfaction Awards 2010.

The Losers
While some networks shone, in general, service levels remain poor - less than 6 out of 10 (58%) of those survey said that they were satisfied with the customer support they received and just 68% said that they felt that their provider offers good value for money.

3 Mobile had the lowest overall score in the pay monthly poll, despite being the runner up for 'Best Value for Money'.  The network came bottom in four categories and just 55% of those surveyed were satisfied with the customer support.  This could be the result of some initial call centre and reception issues, or the need for technical support with new features such as Skype and Windows Live Messenger. Things may change - 3 is currently making a concerted effort to attract smartphone users - its new One Plan offers 2,000 minutes, 5,000 texts and 1GB of internet from as little as £25 per month, and can be paired with a wide range of handsets, including the iPhone 4.

T-Mobile takes the bottom spot for pay as you go customers - coming last in three categories. T-Mobile recently finalised a merger with Orange to form Everything Everywhere, the UK's largest mobile phone operator. 

Network coverage
O2 is rated 'Best for Network Coverage' amongst pay monthly customers, while pay as you go customers give Tesco the highest score for network coverage, despite the fact that the operator piggybacks off the O2 network. T-Mobile and 3 Mobile were rated worst for network coverage in the pay as you go and pay monthly categories respectively.

Value for Money
People spend an average of £15 a month on their mobile, but there seems to be a big difference in terms of the value for money they get. For example, Virgin Media (which was voted 'Best Value for Money' in the pay monthly category) offers customers 200 minutes of talk time for £15, while Orange (which came bottom) offers just 100 minutes for the same price. Overall, 73% of people with a monthly contract are satisfied with the value they get from their phone, compared to just 65% of those on pay as you go.  However, 10% of those surveyed are still not satisfied, so the pressure is on for the networks to keep offering their customers a good deal.

Best Perks
With all the phone operators competing for customers, freebies and incentives are becoming more important. However, the report shows a big difference in their popularity: Tesco, which offers bonus Clubcard points and in-store incentives, came out on top in 'Best Perks' category.  Meanwhile, Vodafone came bottom, unable to compete with Tesco's points, or Orange's 2-for-1 cinema tickets or O2's Priority gig passes. However, Vodafone has recently launched a new 'VIP' service, giving customers front row access to fashion events, Formula 1 races and a host of music festivals.

Ernest Doku, communications expert at uSwitch.com, commented on the results: "In such a saturated market it's remarkable to see new entrants sweep in and steal the glory. Customer satisfaction is not rocket science but networks have taken a long time to get it right. Our hats go off to the new operators that recognise that customers want more than fancy marketing.

"Customers need to see beyond the glitz. The winning formula includes an interesting range of handsets, tariffs that offer real value for money, backed up by first class customer service and a user-friendly website.

"Established carriers would do well not to forget their existing customer base in the quest for new sign-ups. Dedicated helplines and perks for loyal subscribers are equally as important as securing the latest handsets or offering freebies in appealing to price conscious shoppers."

See the full results of the Mobile Phone Customer Satisfaction Awards 2010.

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