Voice quality can cut churn
Persistent problems with the quality of mobile voice calls continue to negatively affect customer attitudes toward their network operator, according to a report from Heavy Reading.
The report, based on interviews with cellcos, suggests that such problems will ultimately require operators to invest in better-performing technologies like VoLTE and HD Voice to reduce customer churn.
“Call quality affects operator expenses such as attracting and retaining customers," said Tim Kridel, research analyst and author of the report.
“The catch is that even when an operator provides call quality that's noticeably superior to that of its rivals, it's not necessarily something that customers will pay extra for,” added Kridel.
According to Kridel, operator research indicates that HD Voice already is a market differentiator, but telcos won't be able to charge a premium for superior call quality because as more operators deploy HD Voice and other enhancements, lifelike quality becomes table stakes.
The report also finds that call quality is a major loyalty factor, especially in the United States, and higher call quality can increase revenue by encouraging longer and more frequent calls.
Also, HD Voice is a minor additional expense, partly because it leverages VoLTE. Mobile operators could use VoLTE and HD Voice to fend off OTT rivals.
Further, call-quality upgrades also benefit non-voice services such as ringback tones, gaming and music.