Ultra-Broadband Forum September 2015 Madrid, Spain
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1 Ultra-Broadband Forum September 2015 Madrid, Spain
2 Ovum s Global Broadband Experience Scorecard Mark Newman, Chief Research Officer, Ovum mark.newman@ovum.com
3 Introducing Ovum s Global Broadband Experience Scorecards Macro data + Micro data > GBES Broadband penetration + Service and applications Scorecards and rankings for 30 Growth momentum + experience + countries in four regions Network data Consumer network score + stakeholder interviews
4 A global survey of consumers in 30 countries
5 Key discovery #1: 10Mbps is the new minimum quality for broadband services People on higher speeds are significantly more satisfied Overall service provider satisfaction ratings Don t know 100Mbps+ 50Mbps to 100Mbps 200Mbps to 50Mbps 10Mbps to 20Mbps 5Mbps to 10Mbps 1Mbps to 5Mbps 500Mbps to 1Mbps <500kbps Broadband speed Service reliability Value for money Ease of payment Billing transparency Billing accuracy Customer support Service installation and set up Overall NPS (%) Overall NPS (%) Note : n=15,050 Note : n=15,050
6 Respondents(%) Key discovery #2: There are significant gaps in current customer experience Intention to churn over next 12 months versus broadband speeds Reasons for churn by access speed Not sure Unlikely Maybe Possibly Very likely Note:n=15,050 <500kbps 500kbps to 1MBPS 1Mbps to 5MBPS 5Mbps to 10MBPS 10Mbps to 20MBPS 20Mbps to 50MBPS 50Mbps to100mbps 100Mbps+ Don t know
7 Key discovery #3: Waiting for more than three seconds is not acceptable Good or better ratings for time-sensitive applications How long does it take short form video (eg YouTube))to play?
8 Level of expectation Key discovery #4: Customers in mature markets rate their service worse than it actually is 30% 20% 10% 0% -10% -20% -30% -40% -50% -60% -70% Italy, -57% France, -40% Spain, -54% UK, -23% Germany, -48% USA, -2% Sweden, -6% Poland, -29% 0% 100% Technical performance Singapore, 25% As actual network performance rises, the lag in perceived performance gets bigger (i.e. consumers demand ever more of their network) Romania, -23% This means that customer expectations of a high performance network tend to be greater than what it can deliver customers will expect more! For every 30% increase in technical network score, the perceived network performance only rises by 20%
9 Key discovery #5: The best network experience is based on three key elements 1. Network performance (waiting time, buffering and picture quality) 2. Network speed (50Mbps for UHD.HD video) 3. Excellent customer service (issue resolution, service provision, activation and restoration)
10 Key discovery #6: One third of customers say their broadband service did not meet the expectations of the service they signed up for Even at higher-speeds, nearly 40% claim the service didn t meet their expectation
11 Respondents(%) Use of long-form video by access speed Never At least once a week Rarely Key discovery #7: Video is becoming a basic broadband service In India the live streaming of TV to different devices place shifting will be the next big thing <500kbps 500kbps To 1Mbps 1Mbps To 5Mbps 5Mbps To 10Mbps 10Mbps To 20Mbps 20Mbps To 50Mbps 50Mbps To 100Mbps 100Mbps+ FBB service provider, SE Asia Note:n=15,050
12 Key discovery #7: Video is becoming a basic broadband service What BB services and applications do you expect to use more and less of over the next 12 months? Significantly decrease Decrease Increase Significantl y increase Significantly decrease Decrease Increase Significantl y increase Download / watch full-length films / TV programs Watch short videps (such as YouTube) Online games Download /listen to music Note:n=398 General Internet browsing Young and urban, emerging markets Download / watch fulllength films / TV programs Watch short videps (such as YouTube) Online games Download /listen to music Note:n=2023 General Internet browsing Over 55 year olds, developed country
13 Respondents(%) Key discovery #8: The video is experience is not meeting expectations in most countries Video streaming buffering versus speed Impact of buffering on overall QoE Yes, it regularly buffers (l.e.at least once per video) Yes, it buffers Now and again Yes, but cery occasionally Never Note:n=7,330 0 <500kbps 500kbps To 1Mbps 1Mbps to 5Mbps 5Mbps to 10Mbps ps 10Mbps to 20Mbps 20Mbps to 50Mbps 50Mbps to 100Mbps 100Mbps+ Don t know
14 Key discovery #9: Customers are using an average of four devices Multi-device usage is most prevalent among younger people Most over-55s mainly access the Internet via a laptop or PC
15 GBES: how the 30 markets compare Europe Asia-Pac Americas MEA France (11) Germany (6) Italy (16) Poland (11) Romania (2) Russia (8) Spain (13) Sweden (1) UK (8) Australia (15) China (18) India (24) Indonesia (26) Japan (6) Malaysia (23) Philippines (29) Singapore (4) South Korea (5) Thailand (19) Vietnam (22) Argentina (25) Brazil (21) Canada (3) Mexico (20) USA (8) Egypt (30) Saudi Arabia (26) South Africa (26) Turkey (17) UAE (14)
16 Recommendations for service providers, regulators and government 1. Maintain investment in network bandwidth and network quality 2. Network performance needs to exceed usage requirements (to minimise tendency to churn) 3. Emerging market operators need to build video-ready networks 4. Customer service is a differentiator 5. Regulators network quality data needs to refer to specific services and applications
17 Thank you Ultra-Broadband Forum 2015
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