UK consumers would be inclined to pay more for better telecoms services, to the tune of £1.45 billion per year in additional industry revenues, but half would terminate their contracts immediately in the event of a security breach, according to new research.

Based on a poll of 2,000 UK adults, professional services firm KPMG found customers would pay an extra £900 million per year for improved customer service and eliminating dropped calls, and £550 million per year for reliable broadband connectivity, equivalent to 10 percent of UK providers’ average revenue per user.

At the same time, half of them said they would immediately cancel their contract in the event of a personal data leak, even if the action resulted in a financial penalty.

A security breach is twice as likely to prompt consumers to switch providers as being subjected to rude or unhelpful staff, the research found.

Alex Holt, Partner and Head of Telco, Media and Technology, KPMG in the UK, said: “Tolerance is extremely low for anything that prevents connections with the devices or services [consumers] want.”

He added: “By focusing on building trust with their customers, there is a clear opportunity for telcos to increase revenues and become the trusted gateway for tomorrow’s connected consumer.”

The survey also suggested UK consumers are well disposed to new technologies, and bundled services, with around half willing to purchase either smart watches or connected kitchen appliances from their telecoms provider.

Around one in five would consider buying connected household security from their telco, the research found. 

A third of respondents said they would consider a single quad-play contract for television, broadband internet, landline phone, and mobile services.

The remainder are nervous about being over-reliance on a single provider.

Holt said: “We believe that telcos have a great opportunity to define the connected world.

"They need to take action now, invest in great infrastructure and position themselves as the logical and trustworthy digital curator to the consumers exciting, but daunting journey into the connected world.

"In short - get the basics right today to realise the opportunity of the connected world tomorrow.”

More News

TIM aims to become “technological heart” for smart home with product launches, new look for retail TIM aims to become “technological heart” for smart home with product launches, new look for retail TIM has launched the TIM Home ecosystem, introducing a range of new products including a modem and a TV decoder. More detail
KPN vows to sharpen up business offer as operating profit jumps KPN vows to sharpen up business offer as operating profit jumps KPN CEO Eelco Blok has vowed to improve customer satisfaction in its Business arm, as the operator shrugged off faster declining sales to report an increase in operating profit of 13 percent. More detail
Telefónica sees sunny skies ahead as shift to high-value customers bears fruit Telefónica sees sunny skies ahead as shift to high-value customers bears fruit Telefónica has revised its sales outlook for the year ahead as operating income increased by 6.1 percent. More detail
Nokia revises 2017 outlook but Apple deal brings cheer to CEO Suri Nokia revises 2017 outlook but Apple deal brings cheer to CEO Suri Nokia CEO Rajeev Suri has warned of a more difficult 2017 than expected, as the Finnish vendor reported a surge in profits off the back of a patent deal with Apple. More detail
Orange reports bonhomie at home as sales growth continues Orange reports bonhomie at home as sales growth continues Orange has returned to growth in France for the first time in almost a decade as sales made further headway in 2017. More detail
    

@eurocomms