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MOBILE NETWORK PROVIDERS - US - MAY 2018

Published By :

Mintel

Published Date : May 2018

Category :

Telecommunications

No. of Pages : N/A

Wireless service marketing is challenging given that penetration is virtually universal and that the majority of subscribers are not interested in changing service. With limited opportunities for adding new subscribers and difficulty in poaching existing ones, focusing on increasing average revenue per user (ARPU) through new features is likely to be a chief thrust for the industry looking forward.

Table of Contents

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
Overview
The issues
No easy way out of mass advertising across traditional and digital
Figure 1: Role in service selection, March 2018
Prepaid places lid on pricing
Figure 2: Impression of prepaid services, March 2018
Churn rates dauntingly low
Figure 3: Postpaid churn rates, most recently reported financial quarter, April 2018
The opportunities
Additional services, devices, boosting revenue
Figure 4: Features subscribers would like to add, March 2018
Basic elements of service helping to create loyalty
Figure 5: Perception of provider among subscribers uninterested in changing carrier, March 2018
Promotions propel acquisitions
Figure 6: Interest in changing carriers and circumstances under which changing would be motivated, March 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Sales survive difficult conditions
No growth in service sales 2015-17
Vast majority participate in selection
MARKET SIZE
Adverse conditions stall sales 2014-17
Figure 7: Total US sales and forecast of market, at current prices, 2012-18
MARKET BREAKDOWN
Service sales stall
Equipment revenue sees substantial growth
Figure 8: Wireless service sales vs equipment sales, 2015-17
MARKET PERSPECTIVE
Everyone is involved
Figure 9: Role in service selection, March 2018
No taint on prepaid
Figure 10: Impression of prepaid and smaller carriers, March 2018
MARKET FACTORS
Lower prices far and away leading reason to change carrier
Figure 11: Objectives in changing carrier, by carrier (AT&T/Verizon), March 2018
Figure 12: Objectives in changing carrier, by carrier (other brands), March 2018
Growth via acquisitions tough
Figure 13: Postpaid churn rates for most recently reported financial quarter, April 2018
KEY PLAYERS – WHAT YOU NEED TO KNOW
Four networks carry 88% of subscribers
Vanishing brand distinctions advantageous to smaller services
Merger, 5G create room for new second tier
WHAT’S WORKING?
Dominance tied to handsets
Figure 14: Subscriptions by provider (with subsidiaries included in parent share), March 2018
Campaigns lead perception
Figure 15: Perception of Verizon and AT&T among subscribers uninterested in changing carriers (AT&T/Verizon), March 2018
Figure 16: Perception of provider among subscribers uninterested in changing carriers, by carrier, excluding AT&T/Verizon, March 2018
WHAT’S STRUGGLING?
Current strugglers likely to see gains from merger
Figure 17: Subscriptions by brand, March 2018
WHAT’S NEXT?
5G coming to a hotspot near you
Competition with home internet service providers
T-Mobile and Sprint to merge
Additional devices retain potential
Figure 18: Features subscribers would like to add, March 2018
THE CONSUMER – WHAT YOU NEED TO KNOW
Promotions, reviews critical to success
Customer service and reputation matter
Few planning to switch, but many open to it
Younger and lower-income demographics more inclined to switch
Eight in 10 cite price as reason to switch
INFLUENCES ON CARRIER SELECTION
Personal experience tops marketing
Figure 19: Influences on carrier selection, March 2018
Duopoly reliant on personal experience
Figure 20: Influences on carrier selection, by carrier (AT&T/Verizon), March 2018
Figure 21: Influences on carrier selection, by carrier (other carriers), March 2018
Urbanites more likely to have considered marketing
Figure 22: Influences on carrier selection, by area of residence, March 2018
Marketing carries less weight among highest-income group
Figure 23: Influences on carrier selection, by household income, March 2018
HOW LOYAL SUBSCRIBERS PERCEIVE THEIR CARRIER
Basics fulfilled for those uninterested in change
Figure 24: Perception of provider among subscribers uninterested in changing carrier, March 2018
Hispanics focus on price, customer service
Figure 25: Perception of provider among subscribers uninterested in changing carrier, by race and Hispanic origin, March 2018
With investment, shifts possible in rural and suburban areas
Figure 26: Perception of provider among subscribers uninterested in changing carriers, by area of location, March 2018
Older ages value customer service
Figure 27: Perception of provider among subscribers uninterested in changing carriers, by gender and age, March 2018
INTEREST IN CHANGING CARRIER
Nearly half of subscribers open to change
Figure 28: Interest in changing carriers and circumstances under which changing would be motivated, March 2018
Interest in change lower at smaller services
Figure 29: Interest in changing carriers, by current carrier, March 2018
Top target by income: $75K-99.9K
Figure 30: Interest in changing carriers, by household income, March 2018
Older ages staying put
Figure 31: Interest in changing carriers, by age, March 2018
Urbanites more likely to move
Figure 32: Interest in changing carriers, by area of residence, March 2018
Improved rewards can aid acquisitions
Figure 33: Interest in changing service, CHAID tree output, March 2018
REASONS TO SWITCH
Price, data, and speed
Figure 34: Objectives in changing carrier, March 2018
Younger ages less concerned with price
Figure 35: Objectives in changing carrier, by age, March 2018
Lower-income groups less concerned with price
Figure 36: Objectives in changing carrier, by household income, March 2018
Dads motivated by speed, phones, features
Figure 37: Objectives in changing carrier, by parental status, March 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
CHAID analysis methodology
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE MARKET
Figure 38: Total US sales and forecast of market, at inflation-adjusted prices, 2012-18
APPENDIX – CONSUMER
CHAID tree output
Figure 39: Interest in changing service, CHAID tree output, March 2018

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