Saudi Arabia’s telecom industry is evolving from a competition centered on infrastructure and pricing to one defined by customer experience. A new study by consultancy firm New Metrics, surveying 600 respondents across the Kingdom, highlights how service quality, trust, and seamless digital-physical integration are now the decisive factors shaping loyalty.
Market Leadership and Loyalty
STC dominates the market with 56% top-of-mind awareness and 53% of customers using its services. This leadership reflects years of investment in reliability. However, customer loyalty is no longer guaranteed—competitors must provide differentiated experiences rather than incremental feature upgrades.
The survey revealed that good mobile internet speed and strong coverage drive 60% of customer recommendations, while customer service and value for money remain critical. At the same time, poor coverage (41%), pricing dissatisfaction (31%), and unmet plan needs (28%) were cited as the main reasons for churn. With Saudi Arabia’s Mobile Number Portability law making it easy to switch providers, loyalty hinges on daily performance and responsiveness.
Digital Channels and Service Quality
Despite high digital adoption, service quality outweighs convenience in shaping satisfaction. Mobile apps dominate digital engagement at 79% usage, but customers expect ongoing improvements in usability, speed, and simplicity. Trust in online platforms is strong, with 88% of respondents confident in their provider’s digital security—creating opportunities for more personalized digital services.
The Role of Physical Branches
Even with a digital-first trend, physical branches remain vital, with 68% of respondents visiting one in the past year. Branches provide reassurance, especially for complex services, and play a role in building trust. Seamlessly linking digital and physical touchpoints is essential for customer retention.
Perception of Innovation
While 74% of respondents view their provider as innovative, one in four see them as outdated or slow to adapt. This perception gap suggests that telecom companies must better communicate their advancements, tying innovation to clear, tangible benefits for customers.
“Saudi Arabia’s telecom sector is no longer competing solely on infrastructure or pricing. The new battleground is experience,” said Mounir Mekkaoui, principal at New Metrics. “Connection is no longer enough—experience is what keeps customers loyal.”
