KPMG: Customer Service to Separate the Winners and Losers in UK Broadband

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BT has announced it expects to pass 10m broadband connections this week and Vodafone is to begin offering a branded broadband service nationwide from next week.

With reportedly 99.8% of UK consumers now able to access broadband Alex Sanderson, Telecoms Partner, KPMG, comments:

“The phenomenon of ‘free’ broadband together with music downloads and user generated content has fuelled a huge up take in broadband and this trend is set to continue. With mobile operators also entering the fray, the next year is likely to see the most intense period of competition, with providers striving to differentiate themselves.”

The first phase of broadband growth has been characterised by ‘free’ offers and poor customer service, but KPMG expect the next phase to focus on a quality service for an increasingly sophisticated marketplace.

Alex Sanderson continues: “As consumers grow increasingly sophisticated, their level of service expectation rises. Recent reports have indicated that many consumers are dissatisfied with their broadband providers, on issues such as the length of time it takes to get connected and difficulty reporting defects.

“The smart operators will address poor customer service levels now to capitalise on the new broadband opportunity. We believe the broadband winners will be those that can respond to the new customer service challenge.”

Moreover, as the industry increasingly bundles its broadband offer with landlines, mobiles and TV, winning in broadband becomes a critical success factor in these other markets.

Alex Sanderson concludes: “For those organisations looking to provide bundled services, the issue of poor service can only get more complex. Customers are looking to call their provider about their broadband, landlines, mobiles or TV. That raises the bar again in delivering first class service. Providing a high level of customer service now could ultimately be the differentiator that sets the winners apart.”