In the fast-paced world of telecommunications, where competition is fierce and customer expectations are higher than ever, a new study has revealed a striking truth: telecom operators are realizing only about 60% of their customers’ full potential value. This means that 40% of customer value remains untapped, leaving billions of euros in possible revenue on the table.
According to the Global Telecommunications Study 2025 by Simon-Kucher, which surveyed more than 15,700 consumers across 31 markets, the industry is falling short in maximizing customer satisfaction, loyalty, and long-term profitability. The research highlights key weaknesses in customer engagement strategies and offers actionable recommendations for telecom providers to bridge the gap.
This news carries significant implications for telecom operators, regulators, and customers alike. Let’s explore the findings in detail and understand what this untapped potential means for the future of telecom.
Key Findings From the Global Telecommunications Study 2025
The Simon-Kucher study provides a detailed snapshot of customer sentiment and business performance in the telecom sector.
1. Net Promoter Score (NPS) remains worryingly low
- Telecom operators scored an average NPS of 14, which is far below benchmarks in other industries.
- In comparison, sectors like retail and entertainment reach NPS scores ranging between 16 and 80.
2. ARPU (Average Revenue Per User) is declining
- ARPU has fallen by 7% year-on-year, highlighting a downward trend in profitability.
- Despite technological advancements and higher network investments, monetization of customer relationships is weakening.
3. Customer lifetime value (CLTV) potential is underutilized
- Operators currently capture only 60% of the available customer value.
- The remaining 40% represents a growth opportunity of between 11% and 43%, depending on market conditions.
4. Customers are not fully engaged
- The study introduces the HELP Framework (Happy, Engaged, Loyal, Paying).
- Across this framework, telecoms scored poorly on satisfaction, engagement, and loyalty, which ultimately impacts monetization.
Understanding the HELP Framework
To better analyze the performance of telecom providers, Simon-Kucher designed the HELP Index. This approach measures four key dimensions:
- Happy – Customer satisfaction with services and overall experience.
- Engaged – Interaction and meaningful engagement with the provider’s offerings.
- Loyal – Long-term commitment, reduced churn, and advocacy for the brand.
- Paying – Willingness to spend more, upgrade, or purchase additional services.
The HELP Index revealed that while operators often manage to secure payments, they fall behind in keeping customers truly happy, engaged, and loyal. This imbalance prevents them from unlocking the full spectrum of customer lifetime value.
Why Telecom Operators Are Falling Short
Telecom companies face a combination of structural and strategic challenges:
- Overemphasis on acquisition: Many operators still prioritize acquiring new subscribers instead of maximizing value from their existing base. This “red ocean” approach leads to high marketing costs with diminishing returns.
- Weak customer experience: Long waiting times, poor first-call resolution rates, and limited personalization leave customers dissatisfied.
- Limited loyalty incentives: Compared to other industries like aviation or retail, telecom loyalty programs lack compelling value.
- Pricing pressure: Intense market competition forces operators into price wars, reducing average revenues and margins.
- Underutilized digital engagement: Despite advances in apps and digital tools, many telecoms fail to connect with users in meaningful, personalized ways.
The Revenue Opportunity: 40% Untapped Value
Leaving 40% of customer value untapped is not just a theoretical problem; it represents a substantial financial gap. With the global telecom industry worth trillions of dollars, even a small improvement in customer monetization can deliver massive revenue gains.
The study indicates that by improving across the HELP framework, operators could lift CLTV by up to 43%. This would come not from raising prices aggressively, but from increasing satisfaction, deepening engagement, fostering loyalty, and encouraging customers to spend more willingly on value-adding services.
Strategic Opportunities for Telecom Operators
To close the gap and capture untapped value, operators must rethink their strategies. The study highlights several key focus areas:
1. Improve First-Call Resolution
Customers expect quick solutions. When problems drag across multiple calls, satisfaction plummets. By investing in better training, AI-assisted support tools, and streamlined processes, telecoms can resolve issues faster and build trust.
2. Deliver Frictionless Service Experiences
From onboarding to billing, every touchpoint should be smooth and intuitive. Frictionless digital channels, simplified payment options, and transparent communication help reduce frustration.
3. Build Compelling Loyalty Programs
Strong loyalty programs can increase retention and encourage upgrades. By offering rewards, personalized bundles, and exclusive perks, telecoms can strengthen customer bonds.
4. Leverage Targeted Digital Engagement
Mobile apps, personalized notifications, and customer data analytics should be used to engage customers more effectively. Proactive suggestions, service optimization tips, and tailored offers improve both engagement and spending.
5. Drive Up-Selling and Cross-Selling
Instead of focusing only on core services, operators can generate more value through smart bundling of products such as home internet, streaming subscriptions, and cloud storage.
6. Pivot Toward Commercial Excellence
Commercial excellence means aligning customer satisfaction with financial results. Rather than simply adding customers, telecom operators should aim to maximize lifetime value by integrating marketing, pricing, and service excellence strategies.
The Red Ocean vs. Blue Ocean Shift
Traditionally, telecom operators have focused on a red ocean strategy—fighting competitors for market share through promotions and discounts. This approach is costly and often unsustainable.
The study suggests that operators should pivot toward a blue ocean strategy, focusing on retention, differentiation, and long-term value creation. By investing in unique services, personalized experiences, and deeper relationships, telecom providers can escape the price war trap and unlock sustainable growth.
The Consumer Perspective
For customers, the findings are a double-edged sword. On one hand, competition among operators has driven down prices and increased access to affordable connectivity. On the other hand, service quality, loyalty rewards, and personalized engagement remain underwhelming.
Consumers want more than just a low price. They expect:
- Faster issue resolution.
- Seamless digital interactions.
- Rewards for long-term loyalty.
- Value-driven offers instead of one-size-fits-all packages.
Meeting these expectations will not only benefit operators but also enhance the everyday experiences of millions of telecom users worldwide.
Key Notes for Readers
- 40% of telecom customer value remains untapped, creating a massive growth opportunity.
- Net Promoter Score averages just 14 in telecom, lagging behind other industries.
- ARPU has dropped by 7% year-on-year, signaling weakening monetization.
- The HELP Framework (Happy, Engaged, Loyal, Paying) provides a structured way to assess customer relationships.
- Operators can increase Customer Lifetime Value by 11%–43% by focusing on satisfaction, engagement, loyalty, and monetization.
- Strategic areas of improvement include first-call resolution, frictionless service, loyalty programs, digital engagement, and cross-selling.
- A shift from acquisition-driven growth (red ocean) to retention and value-driven growth (blue ocean) is essential.
Conclusion: A Wake-Up Call for the Telecom Industry
The Global Telecommunications Study 2025 is a wake-up call for operators worldwide. By continuing to leave 40% of customer value on the table, telecom companies risk stagnation, declining revenues, and weakened customer trust.
However, the path forward is clear. By prioritizing customer happiness, engagement, loyalty, and willingness to pay, telecom operators can transform untapped potential into measurable growth. The key lies not in adding more subscribers at any cost but in creating sustainable relationships that benefit both customers and businesses.
In a world where connectivity is no longer a luxury but a necessity, telecom operators must step up their game. Those who successfully unlock the full value of their customers will not only improve their financial performance but also strengthen their role as essential service providers in the digital economy.
