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With Vodafone set to launch NBN services next year, Roy Morgan Research consumer telecommunications data reveals that 550,000 of its mobile customers are looking already to switch broadband provider.Vodafone had advised earlier in the week of its intention to enter the fixed-line broadband market, with the Roy Morgan data showing that the telco “has a massive potential market at the ready”.
Roy Morgan states that 3.5 million Australians aged 14+ have a mobile phone with Vodafone, of which nearly 2.5 million also have fixed-line broadband at home, including almost one in 10 already on the NBN.
Customers with Vodafone mobile “are – almost by definition – less keen than average on Telstra”.
Roy Morgan states that 22 per cent of Vodafone mobile phone customers have a home fixed-line broadband service connected through Telstra, compared with 32 per cent of all Australians, while another 12 per cent have fixed-line broadband with Optus, equating to the same nationally.
Vodafone customers are twice as likely as average to use a TPG Telecom fixed-line broadband service (13 per cent), with a further 8 per cent connected with TPG-owned iiNet, and 6 per cent with either Dodo or iPrimus, part of Vocus Communications.
Vodafone mobile customers’ fixed broadband providers
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| Source: Roy Morgan Single Source, April – September 2016 n = 3,991 Australians aged 14+ with a mobile phone with Vodafone. * iiNet Group includes iiNet, Internode, Westnet, Adam and TransACT; Vocus Group includes Dodo and iPrimus. |
Roy Morgan notes that of the Vodafone mobile customers already on the NBN, the proportion with each internet provider is fairly consistent with the broadband market, with Telstra marginally less popular and TPG marginally more popular.
“Vodafone has a massive potential market at the ready: 550,000 of their mobile customers are already intending to switch fixed broadband provider in the next 12 months,” Roy Morgan states.
“Among the nearly 2.5 million Vodafone mobile users with fixed broadband, 22 per cent are very or fairly likely to switch.”
Vodafone customers are also over 50 per cent more likely than average to be dissatisfied with their current fixed-line broadband provider, Roy Morgan states, while customers with TPG fixed-line broadband are among the most satisfied, and least likely to be inclined to switch.
Roy Morgan Research CEO Michele Levine noted that in two months it is the second time “a mobile phone service provider has announced its aim to expand into the fixed broadband market”.
“Every new competitor compels all existing operators to take full stock of their current and trended market share, evaluate pricing and offers, analyse the satisfaction levels and intentions among customers, and pinpoint those who are most likely to switch to the new entrant,” Levine commented.
“Unlike with Amaysim, Vodafone has a massive existing customer base it can immediately target. But it’s not simply a matter of sending out the same series of texts to 3.5 million people. There are many different segments who would each be receptive to different communication strategies and offers.
“There are those who want the cheapest fixed broadband, those who want the fastest, those who trust brand-name recognition and customer service, those who prefer to bundle their telco services, those who already have the NBN and those without any fixed broadband at all.”
