Over half of UK consumers would leave their telecoms provider in the event of a personal data breach even willing to face financial penalties
In a survey carried out by auditing firm KPMG on 2,000 UK consumers in the summer of 2016, 50 per cent would cancel their contracts if personal details were leaked.
A security breach is also twice as likely to convince consumers to switch telecoms providers. Rude or unhelpful staff is also twice as likely to switch off customers.
However the report also found consumers would pay 10 per cent more for reliable connectivity and perfect customer service. This offers a potential revenue boost of £1.45 billion for telecommunications.
Based on the average amount consumers would add to monthly bills, improving customer service and eliminating dropped calls could deliver £900 million to annual mobile revenues, while reliable broadband accounts for £550 million.
IoT sees great interest
The survey also found a growing demand for Internet of Things devices offering new revenue opportunity. Of the 2,000 surveyed, 47 per cent would be willing to buy a smartwatch from their mobile provider, 50 per cent would buy a connected kitchen appliance from their broadband provider and 22 per cent would consider buying connected household security from their provider.
Potential for TV, broadband, mobile and landline ‘quad-play’ bundles was also found, with consumers stating they would consider a single contract for all of the above. However consumers remain nervous with being over-reliant on one provider and onerous contracts.
KPMG partner and head of telco, media and technology Alex 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.”