A new report by Ericsson ConsumerLab, titled ”Life in the Fast Lane”, evaluates the usage habits of consumers in Saudi Arabia, revealing that network speed is a significant factor that changes the behavior of mobile broadband users in the Kingdom.
Report findings show that network speed in Saudi Arabia also impacts the adoption of advanced services – more users on faster networks are accessing data services like mobile payment and video calls.
The research was conducted with 1,279 mobile broadband users, estimated to represent 35 percent of the total population of Saudi Arabia. All respondents use mobile broadband through either a mobile phone or dongle, and 72 percent have a prepaid connection.
The key findings in the report are as follows:
1. Faster networks affect users’ behavior
Users on faster networks behave differently than users on slower networks. Smartphone users on faster networks tend to have a more positive perception of the network operator, and the number of promoters (users who recommend their operators) is also higher.
2. User priorities are changing
Both “value for money” and “network performance” are two important areas that impact consumer satisfaction among all mobile broadband users. But, network performance is less of a concern for users on faster networks.
3. Advanced services are used more
More users on faster networks are accessing advanced data services like internet video calls, mobile payment and tethering compared to users on slower networks. As an example 19% of smartphone users on slower networks make online payments on mobile phone, while 34% of smartphone users on faster networks use this service.
4. Perceived extra costs are a deterrent
Consumers in Saudi Arabia perceive faster networks to be more expensive, although upgrading is in fact free in Saudi Arabia. %44 percent of smartphone users who had rejected moving to faster networks cited expensive monthly fees as the reason for not doing so. This is one of the main barriers preventing people from subscribing to them.
Bunyati Kirdniyom, Head of Communications and Regulatory Affairs, Ericsson Thailand said that “mobile broadband is right at the center of consumers’ lives, from the moment they wake up until the end of the day. As more advanced applications become popular, perceived network performance and reliability have a significant impact on users’ satisfaction and loyalty. In this study, we compared the differences in mobile broadband users’ behavior when using data on networks perceived as faster and networks perceived as slower. The networks perceived to be faster were in this case represented by 4G networks, and the networks perceived to be slower were represented by 3G networks.”
Smartphone users who subscribed to faster networks were significantly more satisfied than those on slower networks. Highly satisfied users are also more likely to be promoters, recommending their preferred network to others, added Bunyati.