Global Telecommunications Study 2026 shows growing commoditization in telecoms as operators shift focus toward customer lifetime value and lifecycle management
Cologne, June 16, 2026 - Telecom operators are under growing pressure as key differentiators such as network quality become increasingly commoditized, driving customers towards price comparisons rather than focusing on differentiated value. Simon-Kucher’s Global Telecommunications Study 2026 finds that only 54 percent (vs. 52 percent in ‘25) of customers see telco services as good value for money, even as ARPU declines across premium, mid-market, and budget segments.
In this environment, operators need a more systematic growth model. The IBRO (Inflow, Base, Renewal, and Outflow) framework provides that structure. Simon-Kucher builds on this approach by layering in brand perception to deepen insights across the customer lifecycle, focusing on four levers: winning the right customers, growing value in the base, strengthening loyalty, and reducing churn before it happens.
“Telcos are not overpriced, but they are under-explaining their value,” said Kajetan Zwirglmaier, Partner and Global Head of Telecommunications at Simon-Kucher. “Winning in this market will depend less on acquiring new customers and more on growing customer lifetime value within the existing base. That requires aligning acquisition, monetization, and retention into one coherent system, which is exactly what the IBRO framework enables.”
Key findings:
- Value gap persists – Only 54 percent of customers perceive telco services as good value for money, with Europe and North America trailing global averages while MENA and LATAM perform more strongly
- Global leaders and laggards – The UAE leads with 72 percent positive value perception, while Germany stands at 61 percent and the USA at 56 percent. Portugal ranks lowest at 34 percent
- Premium under pressure – Premium segment’s mobile ARPU has declined at a 2.6 percent CAGR since 2024, while the budget segment fell 2.3 percent and mid-market declined 0.5 percent
- Features near parity – In 90 percent of markets, at least one budget player offers 5G. In 92 percent, one offers eSIM. In 64 percent, one offers unlimited data
- MVNOs reshape markets – Regions with higher MVNO intensity show a faster deterioration of the premium segment (Europe: -2.9 percent, North America: -2.5 percent vs. +1.7 percent rest of world)
- Sub-brand gap persists – An intensifying MVNO threat requires a thoughtful alignment of a multi-brand strategy with typically 1-2 sub-brands. However, on average operators average 0.8 sub-brands limiting their ability to compete effectively in the budget segment.
- Churn risk elevated – Around 30 percent of customers say they are likely to switch provider, with pressure most visible in premium and mid-market segments
- Engagement drives value – Loyalty program participation can raise customer lifetime value by 20 percent, while telco app usage can lift it by 17 percent
- Base loyalization is key – ~65 percent of customers optimized themselves in the last 2 years, while only 35 percent kept their offer, underlining the high importance for operators to loyalize their base
“Growth will not come from better networks alone, but from systematically managing value perception and customer lifetime value.” said Alexander Zimm, Senior Director at Simon-Kucher. “Operators need to fix value perception before touching price, build multi-brand portfolios to capture all segments, and turn engagement into a monetization engine. The biggest opportunity lies in managing the base more effectively and acting before churn happens.”
Complete study findings are available upon request.
About the Study: The Global Telecommunications Study 2026 was conducted in April 2026 across 35 countries in six key geographical regions (Europe, MENA, SSA, APAC, North America, LATAM) surveying nearly 18,000 consumers.
About Simon-Kucher
Simon-Kucher is a global consultancy with more than 2,200 employees in 30+ countries. As a trusted commercial advisor focused on unlocking better growth, we combine deep consulting expertise, growth specialization, and technology to scale lasting impact. We optimize every lever of commercial strategy – product, pricing, innovation, marketing, and sales – based on what customers want and value. With over 40 years of monetization experience, we are recognized as the world’s leading commercial growth and pricing specialist.
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