In 4G era, app, video streaming experience key for brand loyalty: Report

| Updated on: Jan 17, 2018

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At a time, when mobile services operators are gearing to make most from the 4G bandwagon, the latest Ericsson Report reveals that quality of video streaming would determine the brand loyalty of the customers.

The report released on Tuesday stated that mobile broadband experience among the users has emerged as the principal driver of smartphone user loyalty towards operators.

"As smartphone users’ behavior changes, traditional measurements are no longer enough to determine whether customers prefer their operator," a new report from Ericsson ConsumerLab says.

In high growth markets, such as India and Brazil, mobile broadband experience is twice as important in driving smartphone user loyalty compared to voice experience. This is because users of smartphone and mobile broadband in these markets are younger and care less about voice call usage compared to mobile data, it revealed.

"As new apps emerge and video usage behavior evolves, network performance will matter more than ever and will determine how loyal smartphone users will be to their operators," says Jasmeet Singh Sethi, Senior Advisor with Ericsson ConsumerLab.

Overall, 2 in 5 smartphone users claim they face more than 11 issues at least weekly. Issues range from lack of signal or coverage, slow loading web pages and video content on streaming apps to slow upload and download of content on social media websites.

In 2013, slow and failed content upload/download was the most common issue, while today video streaming issues are more common, the report noted.

As against global average of 26 per cent smartphone users, who face video streaming issues daily, markets like Brazil, India and Indonesia have this extent at over one third.

While mobile broadband coverage has improved, the ever-evolving nature of apps and new video streaming behavior is placing different demands on a network’s expected performance.

According to the Ericsson Mobility Report, at the end of 2013, mobile broadband networks with 3G technology covered approximately 60 per cent of the world’s population, while 4G LTE coverage was 20 per cent.

In 2015, this increased to 75 per cent and 50 per cent respectively.

The views expressed in the survey are representative of 650 million smartphone users across 14 markets such as Brazil, China, Germany, India, Indonesia, Ireland, Oman, Poland, Russia, Sweden, South Korea, Ukraine, the US, and the UK.

Published on August 26, 2016
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