U.K. consumers are willing to pay more for fixed broadband and mobile services, and that could translate to a hefty revenue opportunity for telcos, but only if they are willing to improve the quality of their offerings, according to new research published this week.
Premium mobile and broadband contracts could be worth an additional £1.65 billion (€2.25 billion) in annual revenues to U.K. operators, KPMG claims, citing the results of a recent consumer survey; mobile operators could have access to an additional £720 million a year and fixed broadband providers to £930 million.
Three in 10 of the 2,000 U.K. adults surveyed by the auditing firm said they would pay more for faster and more reliable broadband and 17% said they would pay as much as £10 more per month.
Meanwhile, one in 10 consumers would pay extra for a more reliable mobile service and 5% would pay up to an additional £10.
While that translates to valuable additional revenue for the country’s service providers, the study also showed that they are not necessarily in a position to capture it.
60% of respondents admitted to having a problem with their broadband connection or speed within the past 12 months, while 38% had suffered from a poor mobile signal and dropped calls.
"With £1.65 billion on the table it’s time to fix service, build trust and tap into the growing and insatiable demand for digital services," said Alex Holt, head of telecoms at KPMG UK, in a statement.
He explained that in addition to fixing network issues and helping users with security concerns, telcos should also look to capitalise on the growing desire for quad-play services. The survey showed that 13% of U.K. consumers are considering taking their fixed and mobile phone, pay TV and mobile service from a single provider in the next six months.
"Telcos are failing to take advantage of this substantial opportunity and tho se who rectify this fastest will be in pole position to take the lion’s share of the £1.65 billion," Holt said.
