Data caps and pricing cited as top reasons for switching carriers

Survey by Commerce Commission says 33 percent of fixed-line customers who have switched telcos did so for larger data caps

New Zealand mobile and fixed-line users say better data caps and cheaper pricing are key when switching telcos, with nearly 14 percent of mobile users saying they switched carriers in the previous 12 months, according to a new Commerce Commission report.

The Commerce Commission’s survey on consumer switching behaviour says the main reasons for changing fixed-line service providers are for cheaper plans (41 percent) and larger data caps (33 percent).

Of the mobile users who have switched, 46.6 percent say it was for cheaper rates. Only 12 percent say they switched because they were dissatisfied with the service of their previous provider.

The New Zealand Telecommunication Forum (TCF) says that by the end of this month 500,000 mobile numbers and 300,000 fixed-line numbers will have been ported in the last five years.

More than a quarter of post-paid mobile customers who have considered switching carriers say it is easier to stay with the same carrier, compared to 17.4 percent of prepaid users who say the same. A fifth of prepaid users who have considered switching say they are happy with their current provider, while only 16.9 percent of post paid users say the same.

The Commerce Commission says that barriers to switching do not appear to be significant at this point, but adds that it will continue to monitor the situation.

The survey was produced by Roy Morgan Research and involved two parts. First an analysis of Roy Morgan’s annual survey conducted between November 2010 and April 2011, followed by telephone interviews with 1053 mobile and fixed-line consumers which took place between October 2011 and November 2011.

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Tags data capsnumber portingtelco pricing

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