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Mobile Network Providers - US - May 2017

Published By :

Mintel

Published Date : Jun 2017

Category :

LTE

No. of Pages : N/A

"In February 2017, Verizon changed its postpaid plans to unlimited data plans, effectively closing the period in which major carriers were focused on shared data plans, provided that consumers are willing to pay for the unlimited plans with AT&T, Sprint, and T-Mobile having already made this shift. If consumers do convert to unlimited, the use of data caps as a means to increase revenue will come to an end."

Table of Content

OVERVIEW
What you need to know
Definition

EXECUTIVE SUMMARY
The issues
Adoption nearly complete
Figure 1: Cell phone ownership among adults and teens, April 2014-November 2016
Service revenue in decline
Figure 2: Wireless carrier service revenues, 2013-16
Growth via acquisitions tough
Figure 3: Tenure with current carrier, January 2017
The opportunities
Moving into cars
Figure 4: Willingness to pay for mobile internet for cars, by price, January 2017
Reducing spending via more targeted marketing
Figure 5: Interest in changing service, January 2017
Focusing on the needs of the minority
Figure 6: Attitudes to unlimited data, January 2017
What it means

THE MARKET – WHAT YOU NEED TO KNOW
Stagnant sales
Slow growth for branded service
Growth in M2M
Most subscribers stick with carrier for three years or more
Tablets retain room to propel sales
OTT for branded prepaid

MARKET SIZE AND FORECAST
Growth narrows 2015-16
Figure 7: US wireless service revenues fan chart and forecast, at current prices, 2011-21
Figure 8: US wireless service revenues and forecast, at current prices, 2011-21

MARKET BREAKDOWN
Postpaid slowest segment
Figure 9: Subscriptions, prepaid vs postpaid, 2015 vs 2016
Gains seen at MVNOs
Figure 10: Subscriptions, branded prepaid vs branded postpaid vs MVNO, 2015 vs 2016

MARKET PERSPECTIVE
Adoption nearly complete
Little room for expansion in unlimited
Figure 11: Cell phone ownership among adults and teens, April 2014-November 2016
Courting teens and tweens
Figure 12: Cell phone ownership among adults and teens, April 2015-November 2016
M2M subscriptions shine

MARKET FACTORS
Growth via acquisitions tough
Figure 13: Tenure with current carrier, January 2017
Smartphones headed toward universal penetration
Tablets still offer gains
Figure 14: Smartphone and tablet ownership, April 2015 vs January 2017
Larger, faster phones drive mobile entertainment
Figure 15: Activities conducted by device, PC vs phone, January 2017

KEY PLAYERS – WHAT YOU NEED TO KNOW
T-Mobile rising
Equipment sales drive growth
Value rejected
5G rollout this year

CARRIER SALES AND SUBSCRIPTIONS
T-Mobile sales grow 16% in 2016
Figure 16: Service and equipment sales by carrier, 2015-16
Limited changes in share favor T-Mobile brands
Figure 17: Branded subscriptions by carrier, 2015-16

WHAT’S WORKING?
Equipment sales
Figure 18: Wireless carrier equipment sales revenues, 2012-16

WHAT’S STRUGGLING?
Value
Figure 19: Price per month for unlimited service, April 2017
Service revenue
Figure 20: Wireless carrier service revenues, 2013-16

WHAT’S NEXT?
Tweens and smartphone ownership
Auto subscriptions
Subscriptions for cars a tough sell, but necessary
Figure 21: Interest in mobile internet for cars, January 2017
Services tout safety, teen tracking, happy kids
Figure 22: Verizon Hum creative materials, December 2016
5G

THE CONSUMER – WHAT YOU NEED TO KNOW
Limited interested in changing carrier
3Cs: Coverage, cost, confidence more important than speed, promotions
Unlimited not for everyone

CARRIER
Majority opt for higher-cost carriers
Figure 23: Mobile network provider, January 2017
Differences in income typify carrier selection
Figure 24: Mobile network provider, CHAID tree by demographic groups, January 2017
Figure 25: Mobile network provider CHAID, January 2017

INTENT TO SWITCH CARRIER
Only one in six planning a change
Figure 26: Interest in changing service, January 2017
Parents in second year of service top target
Figure 27: Interest in changing service – CHAID tree, January 2017
Dads standout
Figure 28: Interest in changing service in next month, by gender and age, January 2017
Hispanics carry elevated intent to change carriers
Figure 29: Interest in changing service in next month, by Hispanic origin, January 2017
Urbanites busting a move
Figure 30: Interest in changing service in next month, by location of residence, January 2017

CARRIER SELECTION
Confidence scores
Figure 31: Carrier selection – Leading factors, January 2017
Forget the phone
Figure 32: Carrier selection – Trailing factors, January 2017
Low-cost shoppers keep moving
Figure 33: Selection of lowest-cost carrier, by intent to change carriers, January 2017
Hispanics price sensitive
Figure 34: Selection of lowest-cost carrier, by race and Hispanic origin, January 2017
Youngest adults buy speed
Figure 35: Selection of carrier due to fastest network, by age, January 2017

ATTITUDES TO DATA
Half of subscribers deprioritize unlimited
Figure 36: Attitudes to unlimited data, January 2017
Switchers want their unlimited service fast
Figure 37: Attitudes to unlimited data, by interest in changing service, January 2017
Younger age groups need that data
Figure 38: Interest in unlimited data, by age, January 2017
Subscribers make informed decisions
Figure 39: Interest in unlimited data, by carrier, January 2017

APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
CHAID analysis methodology
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms

APPENDIX – THE MARKET
Figure 40: Total US sales and forecast of market, at inflation-adjusted prices, 2011-21

APPENDIX – THE CONSUMER
Figure 41: Optimal target group for changing service – CHAID output, January 2017

List of Table

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