| Telecom 2009 |
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Press ReleaseEPSI Baltic CountriesMobile/Broadband Telecom |
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Press Release – EPSI Baltic
Mobile Telecommunications and Broadband (Internet) providers – 2009
Mobile telecommunications providers, Private Consumer segment:
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Mobile telecommunication providers, Corporate Market
- Latvian corporate mobile telecommunications subscribers are the most satisfied with their providers’ performance in comparison with Estonian and Lithuanian ones in 2009, their score equals 74.9 points out of 100;
- Lithuania dropped significantly this year by 5.7 points;
- Satisfaction of corporate clients with mobile telecommunications providers in Estonia is going slightly down, but not as dramatically as in Lithuania;
- The only company who experienced significant growth in EPSI this year is Tele2 Estonia (+4.2);
- Corporate subscribers in Baltic countries demonstrate growing loyalty in Latvia, while the loyalty felt substantially in Estonia and Lithuania;
- Tele2 gained loyalty on all Baltic markets;
- LMT is a leader in both loyalty and satisfaction levels among the corporate customers with score of EPSI 77.1 and loyalty 80.1 out of 100.
Broadband (Internet) supply, Private Consumer segment
- Satisfaction with Internet providers’ performance ranges from 68 to 78 out of 100 at companies level in Baltic countries, with Lithuania being a leader for last 3 years;
- Consumers show rather high Satisfaction with Internet providers in Lithuania (74.7 out of 100), the least in Estonia (68.6) and Latvia is on the second place with 70.9 points out of 100;
- Among biggest Baltic Internet providers, Meganet performs best in terms of satisfaction (78.2 out of 100 points) and loyalty (80 out of 100 points);
- Striking loyalty growth in Latvia this year +5.7 points;
- Lithuania, still being a leader with 75.8 points out of 100 does not experience significant changes comparing to previous year;
- The largest loyalty growth this year experiences Lattelecom with +3 points up to score 77.4 out of 100.
These are some of the results from the recently conducted studies among Telecommunications (mobile and Internet) consumers in the three Baltic countries. The study has been conducted as an integral part of the Pan European Performance Satisfaction Initiative (EPSI Rating).
This is the sixth annual study in the Baltic States. It is done in order to support the development of customer oriented and driven services throughout Europe.
The study is based on interviews with thousands of individual and corporate customers representing all three Baltic States. The data collection company Runway conducted it through telephone interviews. EPSI Baltic does all analysis using the same approach and model as in other countries that are part of the initiative. Thus, the results can be compared with those available on an annual basis from many other European countries.
Mobile service providers Private Consumer segment (B2C)
- Customers’ Satisfaction
Customers’ satisfaction is basics for a long-term sustainable business development that is why company strategy could be directed by EPSI (Extended Performance Satisfaction Index). Historic rapid saturation of mobile telecommunications markets has influenced customers’ satisfaction levels in Baltic countries. Market penetration exceeded 100% in each of the Baltic countries now (above 140% in Lithuania), when the market is nearly reached saturation, growth rate of number of SIM cards is only couple of percentage points (especially in Estonia and Lithuania) and it has become easy to switch the mobile service provider keeping same telephone number nowadays. Mobile operators are basically fighting for existing telecommunications customer base. In 2009, due to overall economical turmoil, when people become more price-sensitive, mobile service providers actively pushed to the market various offers (for different target groups, offering different tariff schemes). Fluctuation in satisfaction with mobile services in all Baltic countries in 2009 is observed.
Graph 1 Satisfaction, Mobile Service providers, B2C, 2004-2009
EPSI is falling down in 2009 in all three Baltic countries: Lithuania experiences the most dramatic movement, while Latvia has the smallest drop in satisfaction.
Baltic countries demonstrate satisfaction trends in three different ways:
It is worth noting that the average satisfaction level in Baltic countries is still higher than in most European countries observed by EPSI Raiting (see graph 8). Thus, the competitive edge needs to be sought by carefully analyzing the underlying latents, which form the basis for customer satisfaction and loyalty.
EPSI Rating survey also gauges aspects like public image, product and service quality, value for money. The following facts give a general picture of every country specific market situation:
Improvement at 2 points is a recognized change. The satisfaction index is reported on the scale 0 – 100. The higher score the more satisfied customers. Averages usually fall in the region 60 – 75. Any company receiving a score above 75 has a strong position among its customers, while those below 60 face risks of loosing the customer base. The statistical precision is good for the overall results, and a difference of 1 unit or more for the country average is significant.
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• Customers’ Loyalty
Table 2. Loyalty levels 2004-2009 in Baltic countries
For every business, achieving high Loyalty last year the crucial challenges come this year:
- All Baltic mobile telecommunication providers experience the fall in loyalty levels by more than 3 points on country average;
- Latvia drops back to the level before 2006 in terms of loyalty;
- Lithuania shows the smallest level of loyalty among all the Baltic countries for last 5 years having 74.5 points on industry level.
- The only operator which looks to be in good shape is Bite Latvia with 89 points in loyalty
On company levels situation is similar to tendencies of satisfaction levels; however, the drops are a bit slighter and at least one company per country manages to keep its position above previous year’s level.
Graph 2
- Linkage between customers’ loyalty and satisfaction
The trend presents the strong linkage between satisfaction and loyalty towards leading telecom companies with operations in Baltic countries (see Graph 3). It means that these companies are able to effectively manage clients’ loyalty via factors effecting their satisfaction. It is also important information for companies for better understanding their customers’ behavior in different countries and for reacting accordingly.
Graph 3
Mobile services operators Corporate Market (B2B)
• Satisfaction and Loyalty
| Graph 4 Satisfaction with mobile operators B2B, 2004-09
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| Graph 5 Loyalty to Mobile operators, B2B, 2007-09 |
Broadband (Internet) supply, Private Consumer segment (B2C)
• Customers’ Satisfaction
Table 3 Satisfaction, Broadband, Baltic countries 2007-2009
- Satisfaction with Internet providers’ performance ranges from 68 to 78 at company level (out of 100) in Baltics, with Lithuania being a leader for last 3 years (see Graph 6).
- Consumers show rather high Satisfaction with Internet providers in Lithuania (74.7 out of 100), the least in Estonia (68.6) and Latvia is on the second place: 70.9 points out of 100. (see Graph 6)
- Among biggest Baltic Internet providers, Meganet performs best in terms of satisfaction (78.2 out of 100 points).
Graph 6. Satisfaction, Broadband, Baltic countries 2007-2009
- Loyalty
Table 4 Loyalty, Broadband, Baltic countries 2007-2009
- Striking loyalty growth in Latvia this year +5.7 points;
- Lithuania, still being a leader with 75.8 points out of 100 among Baltic countries does not experience significant changes comparing to previous year;
- The best in terms of loyalty is also Meganet in Lithuania (80 out of 100 points);
- The largest loyalty growth this year experiences Lattelecom with +3 points up to score 77.4 out of 100.
Graph 7 Loyalty, Broadband, Baltic countries, 2007-2009
EPSI Rating – Pan European Telecommunication trends
The mobility sector has been measured in the Nordic countries since year 1999 in annual studies. The coverage has successively been increased to more and more European nations, and in 2009 another central and EurAsian countries have been added. In addition, we now also cover Broadband (Internet) in most of the countries. In the following, the first benchmark results for 2009 are reported.
Mobile telecommunication providers, Private Consumer segment
In the diagram below, the private consumers in the respective country give the scores of their mobile communication provider.
Graph 8 Satisfaction, Mobile telecommunications, B2C, EPSI 2003-2009
- Latvia reported the highest relative satisfaction among historically covered countries by EPSI European ICT-study;
- Norway consumers give the lowest average scores;
- The gap between satisfaction levels for different countries is decreasing;
- Long-term positive trend of satisfaction with mobile telecommunication for observed countries during the last six years should be noted;
- The reaction towards financial turmoil differs from country to country: it did NOT affect satisfaction of mobile telecommunication subscribers, living in Denmark Finland, Norway and Sweden and, otherwise, did affect clients, living in Estonia, Latvia, Lithuania and Check Republic;
- Georgia demonstrates highest satisfaction among three Eastern countries with 84.8 score. Azerbaijan is at the second place.
The satisfaction between companies within one country varies quite significantly. It is noted that during the last year a number of changes in position have occurred.
Table 5 Satisfaction, Mobile telecommunication (B2C), 2003 - 2009
Table 6 Ranking, satisfaction levels, Mobile telecommunication (B2C)
Mobile phones Corporate Market
The coverage of also corporate Markets for mobile telecoms has successively been increased. The results for 2008compared with previous year are illustrated in the diagram below.
Graph 9 Satisfaction Mobile Telecommunication, B2B, EPSI 2007-09
Table 7 Satisfaction Ranking, Mobile telecommunication, B2B
Broadband supply in the region
The satisfaction with the broadband/data-communication provider (among final consumers) is on average lower in the Nordic countries, than for mobile phones.
Graph 10
Table 8 Satisfaction Ranking, Broadband, B2C
In addition to these 3 segments studied in all countries, also Fixed phone (landlines) markets and broadband supply to corporate customers (as well as mobile Internet and digital-TV) are covered in a few countries.
The four main North European/Nordic telecom provider TDC, Telenor, Tele2 and TeliaSonera with their respective brands in different markets have been studied over the last few years, Among these Pan-Nordic/International Telecom companies, TeliaSonera performs best also in 2009, followed by Tele 2, TDC and Telenor. However, all the others have improved significantly in many markets. It is worth noting that none of the main providers is the customer favourite in every country and segment.
EPSI in scope
EPSI Rating is the Pan European measurement tool for analysing non-financial value creation in commercial entities and organisations.
The regular measurement started in Sweden in 1989, and was extended to a number of other European countries in 1999, based on an EU-commission study. The basic results may also be compared with similar studies in USA and a number of countries in the Far East | EPSI operates in around 20 European countries through national (sub-regional) entities, located in Czech Republic, Denmark, Estonia, Finland, Greece, Latvia, Lithuania, Norway, Russia, Sweden (also R&D office) and Ukraine. |
EPSI produces indexes for the majority of economic sectors in the national economics (focus is on sectors with high penetration by final consumers). At present at least 14 industries are covered in the various EPSI countries. In the nations with the highest coverage about 75 – 80 percent of all value added (measured by GDP) is covered. All main companies are studied in a covered industry (mostly those with at least 8 – 10 percent market share). | Currently, EPSI is running surveys in more than 30 sectors industries/sectors: Banking, General Insurance, Life/pension insurance, Trade and Distribution, Telecoms (fixed lines, mobiles and broadband), Utilities (electricity, water gas etc.), Health services, Education, Police and public safety, Public transport, Public administration, Postal Service and Logistics, Business Services (IT, auditing, legal, recruitment agencies, etc.). For the majority of these sectors both final consumer and corporate segments are covered. The number of industries and areas is step-by-step extended by customer and society demands. EPSI Baltic has been dealing with 4 industries mainly: banking, general insurance, Telecom (mobile and broadband) and retail (supermarkets). It also is active with social survey (health care, police, education and public transport). |
The EPSI database system contains more than 70,000 indices from over 2 Million interviews. | Well over 300 companies and organisations in Europe take direct advantage of EPSI corporate results and analysis through subscriptions. More than 80 percent of the subscribers are repeat customers of EPSI. |
More details about the Baltic results are found on the EPSI Baltics web-site: www.epsi-baltics.org. More information about the results for the Baltic Telecommunications sector can also be obtained from Gunnar Ljungdahl on E-mail: Gunnar.Ljungdahl@epsi-baltics.org , phone: +371-29419055 or +371-7015851 and Jelena Alohina on E-mail: jelena.alohina@epsi-baltics.org, phone: +371 29782758.