Variable network quality a key driver of multi-SIM ownership

Globally, the average number of SIM cards owned per mobile subscriber declined to 1.44 in 2016, from a high of 1.50 in 2012. The GSMA Intelligence Consumer Survey 2016 shows that variable network quality is the second biggest driver of multi-SIM ownership, after separate SIMs for personal and business use. The higher the perceived network quality in a country, the less likely consumers are to own dual-SIM handsets and switch between different operators for better network coverage. In developing markets in particular, coverage and network quality remain key levers in operators’ customer retention strategies and competitive positioning.

Reasons for multi-SIM ownership vary between developed and developing markets

The need for separate SIM cards for personal and business use remains the main driver for multi-SIM ownership at the global level. However, consumers in developed and developing countries have other, differing reasons for multi-SIM ownership. While the average number of SIMs per subscriber (SIM ratio) does not differ significantly between developed and developing regions, there exist significant variations in the SIM ratio at a country level.

In our survey, one in five users of multiple SIMs in developed countries claimed that, as well as their primary mobile device, they use at least one other device with cellular connectivity. In Australia this is the main driver of multi-SIM ownership, with more than two in five multi-SIM users saying they have a second connected device with a SIM. The US and South Korea are close behind, with more than a third of users quoting the same reason. Meanwhile, 15% of multi-SIM users in developed countries claimed they require multiple SIMs for travelling, both within their home market and abroad, because coverage varies by operator.

In developing countries however, more than a third of multi-SIM users claimed they switch between different operators to make use of the best call quality in certain locations, due to the variable network quality in their region. In Sierra Leone, Nigeria and Tanzania more than half of multi-SIM users said that network quality was a key reason why they use multiple SIMs. Price sensitivity also remains a strong factor in countries such as Côte d’Ivoire, DRC, Tanzania and other developing economies, where up to a third of multi-SIM users say they regularly buy new SIM cards to take advantage of discounts and promotions.

Figure 1: Average number of SIM cards per subscriber
Note: Developing countries average excludes China; Developed countries average excludes Russia.
Source: GSMA Intelligence Consumer Survey 2016

Poor network quality in the area is a decisive factor in use of dual-SIM handsets

Half the surveyed mobile subscribers living in developing countries own a dual-SIM handset. Cameroon, Sierra Leone and Nigeria have the highest ownership rates, with more than two thirds of respondents possessing a phone with two SIM slots.

Our survey showed a strong correlation between ownership of dual-SIM handsets, ownership of multiple SIM cards for coverage reasons, and a higher average number of SIMs per subscriber. Consumers are more likely to own multiple SIMs from different operators and use dual-SIM handsets in those markets where network quality is perceived as poor and few if any operators provide nationwide coverage. This consumer perception of network quality correlates with data on mobile latency and download speeds from the GSMA Mobile Connectivity Index.

Survey results such as these highlight that in developing markets in particular, extending coverage and reducing variability in network quality can help operators boost customer retention and strengthen their competitive position.