7 in 10 consider switching mobile provider as cost of living crisis hits*

• Lyca Mobile research reveals that 73% of UK mobile users that are thinking about switching providers this year stated that getting better value elsewhere is their motive
• As inflation soars and prices rise, loyalty to the big four MNOs is at risk as over half of customers (56%) believe they could find better value deals elsewhere
• Growing appetite amongst contract customers to switch is creating market opportunity for alternative providers

London, 11th August 2022 – As rising inflation and the cost of living crisis continues to bite, many are considering switching mobile provider to help ease the pressure, according to new research by Lyca Mobile, the world’s largest mobile virtual network operator (MVNO).

Over two thirds of contract customers (65%) of the big four mobile network operators in the UK – Vodafone, O2, EE, and Three – stated that the current cost of living crisis has made them reconsider their phone contract. With consumers looking to bring down costs where they can, 73% of UK mobile users that are thinking about switching providers this year stated that getting better value elsewhere is their motive.

Cost of living crisis shakes MNO loyalty

Almost two-thirds of contract customers (64%) revealed they feel a sense of loyalty to their mobile provider. Yet the current squeeze on household finances could be set to change that as two in five (41%) contract customers think they are overpaying for their current tariff.

In the interests of lowering costs alone, just under half of contract customers (48%) would actively seek a new mobile provider. With over a third (35%) saying they only stay with their current mobile provider because it’s too much hassle to switch, mobile network operator (MNO) loyalty could diminish as prices continue to soar across the country and consumer priorities to save increase.

Growth opportunity for MVNOs

As the cost of living crisis continues to hit the UK, consumers are becoming more deal-conscious. The current economic climate has meant that many are now re-evaluating their loyalty to the big four MNOs. Almost six in ten (58%) said they would switch to alternative providers such as MVNOs, creating a major market opportunity for smaller providers.

Despite almost 2 in 5 (38%) contract customers revealing that on average they have been with their current mobile provider for over 5 years, 41% felt signing up to a mobile contract for longer than 12 months would make them feel trapped – highlighting discontent with their current provider and what is a typical big four MNO plan.

Lyca Mobile chairman, Allirajah Subaskaran, says: “

As households across the UK continue to be squeezed by rising bills and price hikes, consumers are increasingly frustrated and unafraid to ask the all important question: ‘Is this service giving me the best value of money?’.

“This is shaking up the mobile services market, and beginning a move away from the big four to alternative providers that offer low value deals to suit changing consumer needs. We know how important it is to be able to connect with family and friends – wherever you are, easily and accessibly. Everyone should be able to stay connected, which is why Lyca Mobile is proud to deliver great value offers that give customers one less thing to worry about during these difficult times”.

ENDS

Methodology

Lyca Mobile and Censuswide surveyed 1,012 UK mobile users between the 19th May and the 1st June 2022. All mobile users surveyed are contract customers of Vodafone, O2, EE, and Three, and aged 18 or over.

*Among the 32% of respondents that are considering switching mobile providers in 2022, 73% stated ‘I think I can get better value elsewhere’ as their main motivation