European consumers cited pricing as one of the most important factors on which they base purchasing decisions. And although 85 percent of operators also identified pricing as key, many believed their advanced service offerings made costs less relevant to consumers. But 44 percent of consumer respondents indicated they would be willing to forego advanced services in return for lower costs. Many also indicated a willingness to purchase subscriptions and manage their bills online in the interests of saving money.

Coverage was another major issue for consumers, with 67 percent of Swedish respondents and an average of 44 percent in France, Italy and the UK expressing frustration with it. Findings suggest that up to 74 percent of consumers would use their mobiles more if coverage were improved indoors and on transportation systems. Likewise, 79 percent of consumer respondents said they would be more likely to speak on their phones while driving if they had operator-subsidized car kits.

Many consumer respondents also indicated frustration with paying for services. More than a third of postpaid consumers said they wished it were easier to monitor and control their accruing mobile charges, while prepaid users mentioned problems with making top-up payments. Overall, 54 percent of postpaid users and 78 percent of prepaid users rated ease of paying as important or very important, while only 12 percent of operators named it as a key factor on which to compete.

Lack of simplicity is another source of dissatisfaction for consumers, with older respondents in particular reporting that the increasing complexity of mobile devices annoyed them. Similarly, tariff and subscription structures often seem needlessly complex to users. Yet only a quarter of interviewed operators identified the simplicity of their offerings as a key competitive factor.

The Capgemini and INSEAD report concludes that many European players in the telecom industry are locked in a technology-led race to out-compete one another by trying to be all things to all people. Instead, they should be enhancing the basic value proposition of anytime, anywhere communication by focusing on simplicity, convenience and affordability for consumers.