How Telecoms Can Fix Their Customer Service Reputation

This year’s Mobile World Congress felt like a turning point. The spotlight on traditional carriers was dimmer, and there were fewer headline phone launches than in past years. Instead, the event emphasized how mobile technology can integrate seamlessly into everyday life. From new devices and artificial intelligence to connected cars and virtual reality, the themes showed that the market is moving from novelty toward normalization — making technology easier to adopt and more useful for consumers.

One clear takeaway was how deeply mobile and connected devices are woven into our routines. Mobile tech is changing how people access products and services at home, in the car, and at work. Yet many mobile network operators still struggle to capitalise on this central role. Research we conducted with Oxford Brookes University showed mobile phone providers score lowest on customer engagement, with a score of 64 out of 100 compared with retail (68) and banking (67). Consumers often view telcos as utilities rather than meaningful partners in their lives; they feel loyalty toward device brands more than their network operator. The question is whether the rise of new technologies gives telcos a chance to improve customer relationships or whether it widens the gap between providers and their subscribers.

At the show, UK operator O2 revealed it is developing artificial intelligence to handle routine customer tasks — from checking data usage and bill dates to adding services — without human interaction. The move is largely driven by cost: many customers now use mobile apps to manage accounts, and call volumes have fallen. While automated self-service can be efficient and convenient, it also raises concerns about whether automation will weaken customer engagement and loyalty if it reduces personalization or service quality.

Our study shows that customers who interact with their mobile provider across multiple channels feel most engaged and loyal. Phone remains the primary channel for 68% of consumers, followed by online channels (52%), in-store (35%), email (34%), social media (31%), and mobile apps (29%). The more touchpoints a customer uses, the stronger their sense of engagement: those who use all six channels reported an engagement score of 80, significantly above the average. So while AI-driven self-service can boost convenience, carriers must ensure automation complements — not replaces — personalized, high-quality service.

Other sectors are already designing services that integrate into customers’ lives. At Mobile World Congress, Jaguar Land Rover and Shell announced an in-car payment system to streamline refuelling, and Mercedes-Benz showcased an in-car AI assistant that proposes route updates, delivers safety alerts, and makes suggestions based on driver recognition. These examples show auto manufacturers are building services that anticipate needs and add tangible convenience.

The business landscape has shifted: serving customers with one-off transactions is no longer enough. The broader ecosystem around telcos is innovating, and operators should seize the opportunity to lead rather than cede ground to others. Companies like Amazon have reset consumer expectations about personalization, recognition, and convenience — a one-size-fits-all approach no longer resonates in a market saturated with choice.

Organisations that succeed at customer engagement offer services that support people’s wider lifestyles at relevant moments. Many industries have adopted customer-centric strategies; telcos must raise the bar to stand out. To build stronger, longer-lasting relationships, mobile providers should rethink how they connect with customers. Engaging people meaningfully across more touchpoints and across more areas of life helps create deeper, more loyal customer relationships.

Mobile World Congress is increasingly a showcase for connected technologies, and now is the moment for telcos to reclaim the narrative about how these devices serve consumers. Providers need to prioritise tailored experiences, aggregating the services customers want and expect. Doing so will help carriers differentiate themselves, influence the broader ecosystem, and ultimately build the customer loyalty that drives sustainable revenue. After all, a loyal customer base is the foundation of a healthy bottom line.