Why SMBs Switch Telecom Providers

Bredin recently surveyed 500 U.S. small and midsized business (SMB) principals to uncover what prompts them to switch telecommunication vendors, and how likely they are to make a change within the year.

The results vary by headcount. For very small businesses (VSBs, with 1-19 employees), cost savings are the biggest switching motivator. After that, they are driven to switch if the incumbent provider can’t support their growth or provide a competitive advantage.

Like VSBs, small businesses (SBs, with 20-99 employees) are most motivated to switch telecom vendors to reduce costs. After that, though, they will change vendors in order to boost productivity, and if their provider can’t support their growth.

Midsized businesses (MBs, with 100-500 employees) are most likely to switch if they believe a new provider could increase their productivity. Other key switching drivers for MBs are cost savings, supporting business growth, and gaining a competitive advantage.

What Motivates SMBs to Switch Telecom Providers

We also asked how likely SMBs are to switch telecom providers in the next year. In brief, the bigger the company, the more likely they are to switch providers. For example, only 8% of VSBs are extremely likely to switch, compared to 15% of SBs and 25% of MBs. Conversely, 34% of VSBs are not at all likely to switch, versus 30% of SBs and 20% of MBs.

SMB Likelihood of Changing Telecom Provider

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