53% of European Consumers Are Open to Switching Mobile Providers as Telco Loyalty Comes Under Pressure

New Circles analysis finds price and network quality remain the foundations of retention, while bundles, rewards and personalization must prove their impact on customer loyalty

Outline

SINGAPORE, 7 September 2026 - More than half (53%) of consumers across five of Europe’s largest telecommunications markets – France, Germany, Italy, Spain and the United Kingdom – are open to switching mobile providers, highlighting growing pressure on traditional approaches to customer loyalty, according to new analysis from Circles.

The new Consumer Insights: Customer Stickiness & Loyalty in European Telecommunications report brings together country-level consumer and market data from across Europe to examine what is driving switching intention, which retention levers still matter and why operators need strategies tailored to different markets and customer segments.

The findings reveal a fragmented loyalty landscape across Europe. Switching behavior varies considerably by market, age, customer value and exposure to low-cost competition, making a standardized pan-European retention strategy increasingly difficult to justify.

Europe Does Not Have One Loyalty Problem

The analysis identifies sharp differences across major European markets:

Germany: The generational divide is particularly pronounced. Earlier European consumer research found that 64% of adults under 35 were open to switching, while 75% of consumers over 55 intended to remain with their provider.
Italy: Two-year mobile switching intention increased from 18% in 2023 to 27% in 2024, the largest year-on-year increase among the five markets studied – with low-cost operators proving particularly attractive to potential switchers.
United Kingdom: 31% of respondents said they were likely to change mobile operator within two years in 2024, six percentage points higher than in 2023.
Spain: Despite a highly converged fixed-mobile market, consumers continue to move towards low-cost alternatives. Approximately 55% of the intended destinations among switchers were low-cost operators, suggesting that bundle ownership alone does not guarantee loyalty.

Price and Network Quality Still Define the Core Proposition

Across the five markets, price remains the leading factor when consumers consider a new provider, followed by network speed, signal coverage, service reliability and handset discounts.

The findings reinforce that loyalty initiatives cannot compensate for weaknesses in the core customer proposition. Rewards and personalization can strengthen retention, but competitive pricing and dependable connectivity remain its foundation.

"What this research makes clear is that European telcos are not facing just one loyalty problem, but a different one in every market. While price and network quality remain the price of entry, they no longer explain who stays and who leaves. The real differentiator is whether an operator understands what a specific customer values and can act on it. After all, bundles, rewards and personalized offers only build loyalty if it's relevant to that customer, not just available to them. At Circles, we have partnered operators globally to move from generic retention programs to ones that are tested against real customer value. The operators who get this right will not just reduce churn; they will set the standard for what loyalty means in a increasingly converged, commoditized market," said Rameez Ansar, Co-Founder & CEO at Circles.

Bundles Do Not Automatically Create Loyalty

The report also challenges a long-standing assumption that combining fixed and mobile services automatically locks in customers. In the UK, Italy and Germany, fewer than 43% of consumers hold both services with the same operator, and consumer research indicates that convergence has not reliably prevented mobile churn. Even in highly converged markets such as Spain, low-cost competition and the commoditization of bundles are putting pressure on traditional retention models.

Circles recommends that operators measure convergence by what it actually delivers: lower churn, stronger satisfaction, higher profitability and greater customer lifetime value. Bundle penetration, on its own, should not be treated as proof of loyalty.

The Next Battleground: Relevant Customer Value

Network quality remains critical, but in mature markets, incremental improvements can become harder for mainstream consumers to perceive. Deloitte's 2026 TMT prediction on mobile loyalty suggests that rewards are already the leading non-price switching consideration in the Netherlands and Belgium and the second-ranked consideration in the UK.

The opportunity is not to add more generic perks. It is to deliver value that is visible and relevant to a particular customer, including pricing transparency, useful rewards, service recovery, entertainment or device benefits, household convenience and personalized treatment. Circles says these interventions should be targeted and tested against measurable retention and customer-value outcomes.

Four Priorities for European Operators

Based on the analysis, Circles identifies four priorities for operators seeking to strengthen customer loyalty:

Defend the core proposition first – competitive pricing, network quality and reliability remain fundamental.
Segment retention strategies by market, demographics and customer value rather than applying a single loyalty model.
Measure what actually works by assessing the impact of bundles, rewards and personalization on churn, profitability and customer lifetime value.
Respond differently to low-cost competition in each market, reflecting local customer behaviour and competitive dynamics.

Circles brings an operator's perspective to the challenge through its experience building and operating digital telco brands and its AI-enabled SaaS capabilities. The company says the opportunity for European telcos is to connect a 360-degree understanding of customers with the operational agility to adapt propositions, experiences and interventions continuously.

Read the full report: Consumer Insights: Customer Stickiness & Loyalty in European Telecommunications

About Circles

Founded in 2014, Circles is a global technology company reimagining the telco industry with its innovative SaaS platform, empowering telco operators worldwide to effortlessly launch innovative digital brands or refresh existing ones, accelerating their transformation into techcos.

Today, Circles partners with leading telco operators across 14 countries and 6 continents, including KDDI Corporation, Etisalat Group (e&), AT&T, and Telkomsel, creating blueprints for future telco and digital experiences enjoyed by millions of consumers globally.

Circles is backed by renowned global investors, including Peak XV Partners (formerly Sequoia), Warburg Pincus, Founders Fund, and EDBI (the investment arm of the Singapore Economic Development Board), with a track record of backing industry challengers.

To learn more about how Circles enables digital transformation for leading telcos worldwide, visit circles.co.

Get Your Free SaaS Demo