Vodafone edging ahead of O2

Hannah ThompsonYouGovLabs and UK Public Opinion Website Editor
May 12, 2010, 6:23 PM GMT+0

Vodafone is now outperforming O2 in the smartphone market, in both customer satisfaction and loyalty, new research by YouGov’s Technology & Telecoms Consulting team shows. Since O2 became the first mobile phone network to offer the Apple iPhone in the UK, smartphones, and the networks that provide them, have seen prolific diversification and progression, which appears to be threatening O2’s hitherto grip on the market.

Indeed, in recent years, O2’s diversification into broadband, music and financial services markets had seen its customer satisfaction rating stay ahead of that of its competitors, with high levels of consumer loyalty recorded with regard to the network. However, as the market becomes more about data, voice and SMS packages compared to simple voice plus SMS deals, the emphasis on O2 may be waning in favour of other mobile phone network providers when it comes to the lengths consumers will go to get a smartphone.

When we asked 1,679 smartphone users if they would be prepared to switch networks to get their ideal handset, half of current O2 customers agreed they would, compared with just 34% of Vodafone users. This question, designed to gauge customer loyalty, suggests a significant shift in consumer attitudes at a time when demands on technology are changing.

Russell Feldman, Research Manager in YouGov’s Technology & Telecoms team, comments: ‘At times of technological transition, market leaders are vulnerable. This survey shows that Vodafone has invested in the smartphone market and is now reaping the benefits. O2 appears overly-dependent on the iPhone and our data shows that among the rest of its customer base satisfaction, loyalty and recommend scores are trailing behind its traditional rival.’

For more information on YouGov Technology & Telecoms Consulting, please contact Russell Feldman, Research Manager, on russell.feldman@yougov.com