An Ericsson ConsumerLab report reveals the impact of network speed on the satisfaction and loyalty of Saudi consumers towards their mobile operators in the kingdom. Report findings show that network speed in Saudi Arabia also impacts the adoption of advanced services – more users on faster networks are accessing data services like mobile payment and video calls.

1. CONSUMERLAB
LIFE IN
THE FAST
LANE
How network speed affects user
behavior in Saudi Arabia
An Ericsson Consumer Insight Summary Report
June 2014

2. Ericsson ConsumerLab has close to 20 years’ experience of
studying people’s behaviors and values, including the way they act
and think about ICT products and services. Ericsson ConsumerLab
provides unique insights on market and consumer trends.
Ericsson ConsumerLab gains its knowledge through a global
consumer research program based on interviews with 100,000
individuals each year, in more than 40 countries and 15 megacities
– statistically representing the views of 1.1 billion people. Both
quantitative and qualitative methods are used, and hundreds of
hours are spent with consumers from different cultures.
To be close to the market and consumers, Ericsson ConsumerLab
has analysts in all regions where Ericsson is present, developing a
thorough global understanding of the ICT market and
business models.
All ConsumerLab reports can be found at:
www.ericsson.com/consumerlab
2 ERICSSON CONSUMERLAB LIFE IN THE FAST LANE
the voice of the consumer
METHODOLOGY
This study seeks to investigate how network speed affects mobile
broadband user behavior in Saudi Arabia. A number of interviews
were carried out using qualitative and quantitative methods.
The respondents were people living in urban regions, aged 15–69. All
were mobile internet users with either a dongle or mobile phone. The
faster network behavior comparison analysis sections are based only
on mobile internet users with phones.
The findings are estimated to represent 35 percent of the total
population of Saudi Arabia. They encompass 6 focus group meetings
in Riyadh and Jeddah, as well as the following
interview methods:
> 1,279 quantitative interviews
– 663 online interviews
– 351 face-to-face interviews
The fieldwork period took place in the later half of 2013, with a ratio
of 72 percent prepaid and 28 percent postpaid users.
contents
METHODOLOGY 2
BEHAVIORAL DIFFERENCES 3
A DIVERSE MARKETPLACE 4
SATISFACTION VS. IMPORTANCE 5
CUSTOMER CARE COUNTS 6
VOICE AND MESSAGING 7
OVER THE INTERNET
FASTER NETWORK, NEW BEHAVIOR 8
THE KEY TO A BETTER EXPERIENCE 9
WI-FI VS. MOBILE BROADBAND 10
IDENTIFYING BARRIERS 11

3. Perceived
slower
networks
ERICSSON CONSUMERLAB LIFE IN THE FAST LANE 3
VS.
BEHAVIORAL
DIFFERENCES
> Faster networks are affecting
user behavior
Users on faster networks behave differently
to users on slower networks. In both
samples, the users’ profiles are very similar,
and the early adopter segments are not
overrepresented in faster networks. However,
mobile broadband smartphone users on
faster networks tend to have a more positive
perception of the network operator, and the
number of promoters (users who recommend
their operators) is also higher.
> User priorities are changing
Value for money and network performance
are two important areas that impact
satisfaction. However, network performance
is not generally a concern for users on
faster networks.
> Advanced services are used more
Advanced services such as internet/
video calls, mobile payments and tethering
are used significantly more by users on
faster networks, compared to those on
slower networks.
> Toggling between connections
is decreasing
Indoor Wi-Fi used to be preferred to mobile
broadband as a way of connecting to the
internet. However, due to the perceived
good service provided by faster networks,
toggling between the two types of
connections from location to location
is decreasing.
> Perceived extra costs are a deterrent
There is a misguided
perception in
Saudi Arabia that faster
networks are more
expensive. This is one of
the main barriers
preventing people from
subscribing to them.
Key findings
Mobile broadband is right at the center of consumers’
lives, from the moment they wake up until the end
of the day. As more advanced applications become
popular, perceived network performance and reliability
have a significant impact on users’ satisfaction and
loyalty. In this study, we compared the differences in
mobile broadband users’ behavior when using data on
networks perceived as faster and networks perceived
as slower. The networks perceived to be faster were
in this case represented by 4G networks, and the
networks perceived to be slower were represented by
3G networks.
Perceived
faster
networks

4. Who are the faster network users?
In this study, the behavior of mobile broadband users
who had subscribed to faster and slower networks is
compared. Between these two groups the nationality and
age composition is very similar.The two samples were also
analyzed from an early-late adopter perspective.
The majority of early adopters were from the youth
segment, with experience-oriented, career-focused
profiles, while late adopters include basic and
family-phone profiles. The proportion of early adopters
in both samples is very similar, with no ‘early adopter
effect’ in the faster sample. We therefore consider them
to be comparable samples.
The level of technology adoption among users on
faster and slower networks correlates with what would
be expected from their user profiles. This means that
from a behavior perspective, any differences are due to
network speed.
Total
sample
A customized ConsumerLab mobile internet
segmentation model has been developed for
Saudi Arabia to identify different user groups. The
region is a diverse market made up of many different
nationalities. In our mobile broadband user sample,
62 percent of the respondents were Saudi nationals
and 38 percent were expats. The Saudi national
segment consisted of two parts: Saudi adults and
Saudi youth. Saudi adults make up nearly half of the
total mobile broadband users in the region. There is
also a significant expat Arab community, comprising
29 percent of the total mobile broadband users.
4 ERICSSON CONSUMERLAB LIFE IN THE FAST LANE
Source: Ericsson ConsumerLab 2014, Life in the fast lane
Base: Mobile broadband users in Saudi Arabia
Source: Ericsson ConsumerLab 2014, Life in the fast lane
Base: Mobile broadband smartphone users in Saudi Arabia
Figure 1: Mobile broadband user segments
in Saudi Arabia
Figure 2: Network user profiles in Saudi Arabia
A DIVERSE
MARKETPLACE
15–24
years
Saudi
locals
Early
adopters
25–34
years
Expat
Arabs
Early
followers
Expat
Asians
Late
adopters
Others35–44
years
45–54
years
55–59
years
Slower network user profile Faster network user profile
62%
Saudis
46%
Saudi adults
38%
Expats
27%
Saudi parents
29%
Expat Arabs
9%
Saudi parents
– others
18%
Career-focused
Saudi parents
16%
Expat Arab
parents
19%
Saudi singles
13%
Expat Arab
singles
16%
Saudi youth
9%
Expat Asians

5. From the moment a consumer enters the operator’s
retail store, there are many factors affecting their
satisfaction. But which factor has the biggest impact?
To address this question, regression analysis*
was conducted. This calculates the correlation
factor between the different elements in regards to
contribution to the overall customer satisfaction score.
Figure 3 plots the impact of different elements on
customer satisfaction versus the current level of
satisfaction for each element. For users, value for
money and network performance are the most
important factors that impact satisfaction. However,
there is also a very strong correlation between the two.
Network performance satisfaction is relatively high
compared to other factors, however the satisfaction
with value for money is only moderate.
ERICSSON CONSUMERLAB LIFE IN THE FAST LANE 5
Satisfaction
vs. importance
Source: Ericsson ConsumerLab 2014, Life in the fast lane
Base: Mobile broadband users in Saudi Arabia
Figure 3: Satisfaction vs. importance
Customer service Offer Marketing Network
14131211109876
6.4
6.6
6.8
7.0
7.2
7.4
7.6
7.8
Handset
offered
Initial
purchase
Account
management
Ongoing
communication
Loyalty
rewards
Customer
support
Tariffs
Billing
Value for
money
Network
performance
Derived performance (%)
Satisfaction
Source: Ericsson ConsumerLab 2014, Life in the fast lane
Base: Mobile broadband smartphone users in Saudi Arabia
* Shapley regression analysis, showing the relative impact between satisfaction with each driver and operator satisfaction.
Figure 4: Top five drivers for user satisfaction with operator
Slower network mobile data users Faster network mobile data users
Customer service Offer Network
Price plan/tariff options Value for money
Network performance Customer support
Customer support Price plan/tariff options
Value for money Billing and payments
Billing and payment Account management
Customer support is also an area of high importance
with a comparatively low level of satisfaction, and
should therefore be prioritized. On the other hand,
satisfaction with loyalty rewards is low, but also lower
on the scale of priorities.
Figure 4 reflects the perspective of users receiving
services from slower and faster networks.
For smartphone users subscribed to the faster network,
value for money and customer support are the most
important factors impacting satisfaction. At first glance,
network performance does not seem to be a high
priority for users on better performing networks. The
reason is that once users are accustomed to having a
good performance, they stop thinking about it and focus
on other things. However, they tend to be sensitive
to any degradation in performance, and should this
happen it would quickly become high priority again.
15%
14%
12%
13%
11%
16%
13%
11%
12%
10%

6. 6 ERICSSON CONSUMERLAB LIFE IN THE FAST LANE
CUSTOMER
CARE COUNTS
Consumers interact with many different service
providers throughout their daily lives, from retail stores
to banks. When interacting with their mobile operators,
they do not compare the customer service experience
with other operators, but to service providers in
different sectors. Figure 5 below illustrates that
customer satisfaction across the banking, retail, mobile
operator and airline industries is compared. The results
show that satisfaction with mobile operators’ customer
service lags behind other industries in many areas,
including speed of service and users’ ability to get help.
In today’s world, mobile phones are lifelines. Mobile
services play a vital role in consumers’ lives, and
the majority do not expect to have problems with
their smartphones. If a problem occurs, they expect
immediate resolution. 50 percent of users said that
personalized and knowledgeable customer service
support is extremely important to them, even if they
have to pay extra for it.
We want the service
provider to listen to us.
Even if the speed is good,
I won’t choose a provider
that doesn’t listen
because I can’t take
the headache.”
Local male
Suffering in silence
Customer support plays a major role in the satisfaction
of mobile broadband users, as more and more use
different channels to seek a resolution to their problems.
A robust customer support service is absolutely
necessary. In general, customer support for voice
services is perceived to be better than for data services.
Figure 6 shows that 31 percent said customer support
for voice services is always better than data services,
and only 7 percent said the opposite. Similar results are
observed in both faster and slower networks.
But what about the complaints that never reach
customer care? Around 75 percent of the users say
that they report less than half of the problems they
experience. This means that operators actually know
very little about what is really happening. These
unspoken complaints could easily turn into negative
perception, and lead to negative word of mouth. To
help combat this, operators should consider moving
their service quality management from ‘reactive’ to
‘predictive’ mode.
Source: Ericsson ConsumerLab 2014, Life in the fast lane
Base: Mobile broadband users in Saudi Arabia
Courteous
staff
Good online
support
Timely
service
Easy to
get help
Efficient
complaint
handling
User-friendly
hours of
operation
Modern
branches/stores
20%
40%
Multi-brand retail stores
Banking
Airlines
Mobile phone operators
Figure 5: Percentage (top two agree) of respondents who agree that the following statement describes
their experience of different industries within the different areas of customer service
Source: Ericsson ConsumerLab 2014, Life in the fast lane
Base: Mobile broadband users in Saudi Arabia
Figure 6: Customer support for voice services is perceived as better
than for data services
Always
Sometimes
Sometimes
Always
Customer support for data
services is better
Customer support for voice
services is better
31%
11%
21%
7%

7. Saudi Arabian mobile broadband users make use of
internet-based communication services quite frequently.
At least 29 percent make video calls over the internet on
a daily basis, while 85 percent make regular phone calls
through their mobile service providers.
Instant messaging (IM) over the internet is used
more than SMS. On average, 63 percent of mobile
broadband users regularly use IM services, while
53 percent of them choose SMS.
An important point to note is that IM is much more popular
among the younger user segments.These segments
are more cost-aware compared to adults. In addition,
presence, group conversations and the ability to record
voice clips and share functionalities are further reasons for
the young being drawn to IM services.
According to Figure 9, those involved in the study who
make calls over the internet said that out of every
10 calls, 3 are made over the internet and 7 are made
through mobile service providers. Out of every 10 voice/
video calls made over the internet, nearly half of them
are local calls. Only 2 out of 10 mobile internet calls are
international calls.
ERICSSON CONSUMERLAB LIFE IN THE FAST LANE 7
Voice and MESSAGING
over the internet
Smartphones have made
our lives easier. For a
video call we don’t have
to go through the hassle
of setting up a desktop
and webcam or a laptop
– we can do it easily on
our mobile phones.”
Expat Asian
Source: Ericsson ConsumerLab 2014, Life in the fast lane
Base: Mobile broadband users doing internet calls on their mobile phones
Local calls Domestic long
distance calls
International
calls
5.5 2.4 2.1
Figure 9: Destination of calls made over the internet per 10 calls
Source: Ericsson ConsumerLab 2014, Life in the fast lane
Base: Mobile broadband users in Saudi Arabia
Figure 7: Is the instant messaging phenomenon mainly limited
to young people?
Calls Instant messaging service
Videotelephony or video calls SMS
Internet calls without video
Percentage of daily usage
15–19 15–19
0 0
10
20
30
40
50
60
70
10
20
30
40
50
60
70
80
90
20–24 20–2425–29 25–2930–39 30–3940–49 40–49
Age Age
Average of
all users
Average of
all users
85% 63%
53%
29%
28%
Source: Ericsson ConsumerLab 2014. Life in the fast lane
Base: Mobile broadband users doing internet calls on their mobile phones
Figure 8: Calls over the internet vs. mobile service provider
67%
33%
VIA MOBILE SERVICE
PROVIDER
OVER THE INTERNET
INSTANT
MESSAGING
IS POPULAR
among younger user segments

8. 8 ERICSSON CONSUMERLAB LIFE IN THE FAST LANE
Faster network,
new behavior
Once smartphone users have a faster mobile network
connection, their mobile services usage behavior
changes significantly. In the figure to the right, we
compare the faster and slower network subscribers’
usage levels for certain services. Assurance of
uninterrupted, high quality network performance led
users to make more use of mobile internet services in
their daily lives. As a result, smartphone users on faster
networks tend to use more data-intensive services
compared to those on slower networks.
As well as using advanced services like mobile
banking and m-commerce, more users on faster
networks are accessing data services by making video
calls, streaming video content, tethering and using
navigation services. Services such as online payments
in particular show a significant jump between these
two user groups, because on faster networks the
users are more confident that the connection won’t be
interrupted during the payment process.
A large proportion of smartphone mobile data users
mentioned that their experience with different services
improved significantly after they started having
access to faster networks. The services that had the
biggest improvement were video calls, streaming
and uploading/downloading photos/videos – all of
which are data-intensive activities. Expats had a more
positive reaction to this improvement than Saudi
nationals, once both had moved to faster networks.
78 percent of Saudi nationals said that their experience
while using video calls improved after moving to the
faster networks, while 84 percent of expats said that
their experience while using video calls improved.
Source: Ericsson ConsumerLab 2014, Life in the fast lane
Base: Mobile broadband smartphone users in Saudi Arabia using services
via mobile networks daily
Figure 10: Fast and slow network subscriber usage levels
Videotelephony
or video calls
Video calls
and streaming
M-banking
and commerce
Navigation
Tethering
Use maps, navigation
or positioning services
(like GPS)
Use/access
banking services
via mobile phone
Watch video clips,
TV or movies
Check timetables and/
or traffic information
Make payments
via mobile phone
Tethering via
mobile phone
Transfer money
via mobile phone
Use as part of my
shopping habit
67%
40%
31%
23%
19%
81%
45%
20%
34%
73%
48%
44%
35%
34%
88%
56%
31%
49%
Slower networks mobile data user Faster networks mobile data user
Source: Ericsson ConsumerLab 2014, Life in the fast lane
Base: Mobile broadband smartphone users in Saudi Arabia
Saudi national faster network users
Expat faster network users
Figure 11: Service improvement on faster networks – a percentage of Saudi nationals and expats
rated their services improved after moving to faster networks (top two agree out of one to five scale)
78%
84%
78%
81%
76%
81%
70%
81%
66%
70%
VIDEO CALLS
VIDEO CALLS
STREAMING
STREAMING
GAMING EXPERIENCE
GAMING EXPERIENCE
DOWNLOADING
DOWNLOADING
ONLINE PAYMENTS
ONLINE PAYMENTS
The main reason for this is that Saudi nationals are
much more sensitive to network quality, and hence they
have higher expectations.

9. Figure 12: Satisfaction with mobile service provider Recommendation of mobile service provider
Source: Ericsson ConsumerLab 2014, Life in the fast lane
Base: Mobile broadband smartphone users in Saudi Arabia
6.0
6.6
7.4
7.3
7.3
7.3
7.6
7.0
7.5
7.7
7.7
7.1
7.6
7.8
7.7
7.8
8.0
7.4
7.8
8.0
7.9
9.0
Figure 13: Satisfaction with different service areas
Billing and payment
Account management
Customer support
Network performance
Value for money
Handset/devices offered
Price plan/tariff options
Ongoing communication
about services offered
Rewards for being a
loyal customer
Faster network users Slower network users
Initial purchase process
ERICSSON CONSUMERLAB LIFE IN THE FAST LANE 9
In Figure 12, the satisfaction and loyalty of smartphone
users on faster and slower networks are compared with
regard to their operators. Those who subscribed to
faster networks were significantly more satisfied than
those on slower networks.
Highly satisfied users are also more likely to be
promoters. Those using faster networks have a
significantly higher Net Promoter Score (NPS) than
those on slower networks.
Users’ higher satisfaction on the faster networks has a
positive impact on many aspects of customer interaction,
from the billing and payment process to perceived value
for money. Figure 13 shows that across all of the key
customer interaction touch points, the smartphone users
on faster networks are more satisfied.This in turn leads to
lower churn and positive word of mouth.
The key to a
better experience
Source: Ericsson ConsumerLab 2014, Life in the fast lane. Base: Mobile broadband smartphone users in Saudi Arabia
Good PoorAverage
Smartphone mobile data users on faster networks Smartphone mobile data users on faster networks
Smartphone mobile data users on slower networks Smartphone mobile data users on slower networks
73%
62%
22% 5%
30% 8%
Promoters DetractorsPassive
Net Promoter
Score
46
27
60%
48%
26% 14%
31% 21%

10. People spend most of their time indoors, either in the
office, school or home. Location therefore plays an
important role in the type of network connection they
prefer. At home, most consumers prefer to use either
mobile data or a Wi-Fi connection, depending on the
price plan, speed and connection they get. In
Figure 14, mobile broadband vs. Wi-Fi preference
among smartphone mobile data users on slower and
faster networks is compared in different locations.
Across locations, the enhanced experience from
faster mobile networks led to greater usage of mobile
broadband. Indoors, Wi-Fi was the preferred mode
of connection for users on slower mobile networks.
However, due to the perceived good quality of services
from faster mobile networks, toggling between mobile
broadband and Wi-Fi across different locations is
decreasing. Indoors, 29 percent of the users who
subscribed to faster networks prefer to use Wi-Fi most
of the time, compared to 46 percent of the users on
slower networks.
As users become familiar with having a faster
connection, their behavior with regards to mobility also
changes, as shown in Figure 15. Once they realize that
the internet experience indoors and outdoors does
not vary from a performance perspective, they tend
to integrate more mobile internet into their lives, even
while they are out and about. Those on faster networks
are more likely to access the internet on a daily basis at
schools/workplaces and whilst on the move, compared
to users on slower networks.
10 ERICSSON CONSUMERLAB LIFE IN THE FAST LANE
Wi-Fi vs.
mobile broadband
Source: Ericsson ConsumerLab 2014, Life in the fast lane
Base: Mobile broadband smartphone users in Saudi Arabia
Source: Ericsson ConsumerLab 2014, Life in the fast lane
Base: Smartphone users who use various services over
mobile broadband on a daily basis
Figure 14: A good mobile broadband experience across locations leads to higher mobile data usage
Figure 15: Accessing the internet on a daily basis in different areas
At home
At workplace/school
Out and about
Smartphone users on slower networks Smartphone users on faster networks
36%
50%
95%
40%
58%
96%
16%
46%
18%
29%
54%
19%
48%
34%
Outdoors
Indoors
Outdoors
Indoors
Prefers Wi-Fi most of the time Prefers mobile broadband most of the time
Smartphone users on slower mobile networks
Smartphone users on faster mobile networks

11. In Saudi Arabia faster mobile networks have wide
coverage – and no price premium to subscribe to
this access type. As long as the user has a capable
smartphone, they can enjoy higher internet speeds
without paying any extra fees, compared to the
slower networks.
We asked smartphone users on slower networks
why they had chosen not to subscribe to the freely
available faster networks. Although there is no extra
subscription fee for using a faster network, 44 percent
of the users who had rejected subscribing to faster
networks cited expensive monthly fees as the reason
for not doing so. However, if they subscribed to faster
networks, they would not need to pay anything on top
of their current connection type. This may be a case of
consumers simply not being aware of what is available
in the market. Other reasons for not doing so include
satisfaction with their current internet connection,
inertia and perceived lack of coverage.
ERICSSON CONSUMERLAB LIFE IN THE FAST LANE 11
IDENTIFYING
Barriers
Source: Ericsson ConsumerLab 2014, Life in the fast lane
Base: Smartphone users on slower networks
Figure 16: Reasons for not subscribing to faster networks
14%30% 24%
Lack of
coverage
Monthly
subscription
is expensive
Faster networks rejecters
Monthly subscription
is expensive
Lack of coverage
Current internet connection
satisfies my internet needs
Lack of information on
products and services
High initial cost (expensive
handset/dongle)
Lack of choice in devices
I want to hear about my friends/
colleagues/relatives’ experience first
38%
21%
17%
41%
24%
44%
29%
cost
perceptioN
IS A BARRIER
despite network
upgrades being free

12. EAB-14:034848 Uen
© Ericsson AB 2014
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