53% of European Consumers Open to Switching Mobile Providers

More than half of consumers across five major European telecommunications markets, France, Germany, Italy, Spain, and the United Kingdom, are open to switching mobile providers, according to new research from Circles. The findings, detailed in the report "Consumer Insights: Customer Stickiness & Loyalty in European Telecommunications," highlight growing pressure on traditional approaches to customer loyalty.

The analysis, which brings together country-level consumer and market data, reveals a fragmented loyalty landscape across Europe. Switching behavior varies significantly by market, age, customer value, and exposure to low-cost competition. For instance, in Germany, the generational divide is pronounced, with 64% of adults under 35 open to switching compared to 75% of those over 55 who plan to stay with their provider. In Italy, the percentage of two-year mobile switching intention increased from 18% in 2023 to 27% in 2024, the largest year-on-year increase among the five markets studied.

In the United Kingdom, 31% of respondents said they were likely to change their mobile operator within two years, a six percentage point increase from 2023. In Spain, despite a highly converged fixed-mobile market, consumers continue to move towards low-cost alternatives. Approximately 55% of switchers intended to go to low-cost operators, suggesting that bundle ownership alone does not guarantee loyalty.

Price and network quality remain the leading factors in determining a new provider, followed by network speed, signal coverage, service reliability, and handset discounts. Circles emphasizes that while price and network quality still define the core proposition, they no longer fully explain customer loyalty. The real differentiator, according to the company, is an operator's ability to understand what specific customers value and act on it. Circles notes that bundles, rewards, and personalized offers can strengthen retention, but they must be relevant to the customer.

The report challenges the long-held assumption that combining fixed and mobile services automatically locks in customers. In the UK, Italy, and Germany, fewer than 43% of consumers hold both services with the same operator, and consumer research indicates that convergence has not reliably prevented mobile churn. Even in highly converged markets like Spain, low-cost competition and the commoditization of bundles are putting pressure on traditional retention models.

Circles recommends that operators measure convergence by what it actually delivers, lower churn, stronger satisfaction, higher profitability, and greater customer lifetime value, rather than bundle penetration alone. The company identifies four priorities for European operators seeking to strengthen customer loyalty: 1. Defend the core proposition: competitive pricing, network quality, and reliability remain fundamental. 2. Segment retention strategies by market, demographics, and customer value. 3. Measure what actually works by assessing the impact of bundles, rewards, and personalization on churn, profitability, and customer lifetime value. 4. Respond differently to low-cost competition in each market, reflecting local customer behavior and competitive dynamics.

Circles aims to help telcos connect a 360-degree understanding of customers with the operational agility to adapt propositions, experiences, and interventions continuously. The company's innovative SaaS platform enables telco operators to launch or refresh digital brands and accelerate their transformation into techcos.