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Mobile Phones and Phone Service - US - August 2006

INTRODUCTION AND ABBREVIATIONS
Introduction
Definition
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Mobile phone market reinvigorated by technological innovation
Subscriber growth comes from within the household
Cingular loses market share post-consolidation
Motorola increases leadership with high-end strategy
Mobile phone ownership is driven by income while usage is driven by age
Other demographic factors have decreased impact
New multimedia features are most used by teenagers and young adults
Youth-driven market makes mobile technology a fashion trend
Brand strategy must evolve toward more specific consumer targeting
Slower growth ahead
MARKET DRIVERS
The omnipresent phone
Consumers discarding landlines
Increasing sales from data services
Third-generation networks drive sales of content and high-speed Internet
Safety
Innovative phone features driving replacement sales
Figure 1: Growth of mobile phone handsets sold vs. subscriber growth, 2001-06
Figure 2: Total number of handsets sold and replacements as a percentage of handsets sold, 2001-06
Teens: new subscribers in the same household
Figure 3: U.S. mobile phone subscribers and household penetration, 2001-05
Mobile phones as fashion
Figure 4: Additional attitudes toward mobile phones, by age, August 2006
Demographics
Figure 5: U.S. population, by age, 2000-10
Figure 6: U.S. population, by race and Hispanic origin, 2000-10
MARKET SIZE AND TRENDS
Market size
Figure 7: Total U.S. sales of mobile phone handsets and service, at current and constant prices, 2001-06
Figure 8: Graph: Total U.S. sales of mobile phone handsets and service, at current and constant 2006 prices*, 2001-06
Subscriptions and household penetration
Figure 9: U.S. mobile phone subscribers and household penetration, 2001-06
MARKET SEGMENTATION
Introduction
Figure 10: U.S. mobile phone sales, by service and handsets, 2004 and 2006
Figure 11: Graph: U.S. mobile phone sales, by service and handsets, 2001-06
Mobile phone services
Figure 12: U.S. sales of mobile phone services, at current and constant prices, 2001-06
Figure 13: Mobile phone service revenues, by service type, 2003 and 2005
Figure 14: Graph: Mobile phone service revenues by service type, 2005
Mobile phone handsets
Figure 15: U.S. supplier sales of mobile phone handsets, at current and constant prices, 2001-06
Figure 16: U.S. supplier unit sales of mobile phone handsets, 2001-06
SUPPLY STRUCTURE
Introduction
Wireless service providers
Overview
Figure 17: U.S. sales of mobile phone services in the U.S., 2003 and 2005
Figure 18: Graph: U.S. sales of mobile phone service in the U.S., 2005
Figure 19: Subscriber statistics for major wireless service providers, 2004 and 2005
Cingular Wireless
Verizon Wireless
Sprint Nextel
T-Mobile
Alltel
Handset manufacturers
Introduction
Figure 20: U.S. sales of mobile phone handsets in the U.S., 2003 and 2005
Figure 21: Graph: U.S. sales of mobile phone handsets in the U.S., 2005
Smart phone wars
Motorola
Samsung Electronics
LG Electronics
Nokia
ADVERTISING AND PROMOTION
Adspend
Figure 22: Media expenditures by major wireless providers and handset manufacturers, 2004 and 2005
Television vs. non-traditional media
Review of television advertisements
Cingular
Figure 23: Cingular Wireless television spot: All over network
Figure 24: Cingular Wireless television spot B
Verizon
Figure 25: Verizon Wireless television spot
Sprint Nextel
Figure 26: Sprint Nextel Wireless television spot A
Figure 27: Sprint Nextel Wireless television spot B
T-Mobile
Figure 28: T-Mobile “Get more minutes”
Alltel
Figure 29: Alltel television spot
Prepaid service
Virgin Mobile
Figure 30: Virgin Mobile “Pay as you go”
Boost Mobile
Figure 31: Boost Mobile “Where you at?”
Handset manufacturers
Motorola
Figure 32: Motorola television spot: E series phone
Figure 33: Motorola television spot: ROKR phone
Figure 34: Motorola television spot: Ojo phone
Figure 35: Motorola television spot: Motorola Q
Samsung
Figure 36: Samsung television spot: Mobile phones
Figure 37: Samsung television spot: Twist
LG
Figure 38: LG television spot: Mobile phones
Nokia
Figure 39: Nokia television spot: 8801 phone
Figure 40: Nokia television spot: 6236i phone
Figure 41: Nokia television spot: 3155 phone
RETAIL DISTRIBUTION
Carrier retail stores
Figure 42: Number of retail stores operated by major service providers, 2003 and 2005
Online retail
Figure 43: Top-selling mobile phone handsets online, Q1 2006
Other retailers
THE CONSUMER
Introduction
Summary
Individual mobile phone ownership
Figure 44: Ownership of mobile phones, 2001-05
Figure 45: Ownership of mobile phones, by age, January-September 2005
Figure 46: Ownership of mobile phones, by household income, January-September 2005
Figure 47: Mobile phone penetration, by cohort, January-September 2005
Attitudes toward mobile phones
Figure 48: Attitudes toward mobile phones, by gender, June 2006
Figure 49: Attitudes toward mobile phones, by age, June 2006
Figure 50: Graph: Attitudes toward mobile phones, by age, June 2006
Figure 51: Attitudes toward mobile phones, by household income, June 2006
Figure 52: Attitudes toward mobile phones, by presence of children in the household, June 2006
Reasons for choosing a mobile phone
Figure 53: Reasons for choosing a mobile phone, by age, June 2006
Figure 54: Graph: Reasons for choosing a mobile phone, by age, June 2006
Figure 55: Reasons for choosing a mobile phone, by household income, June 2006
Figure 56: Reasons for choosing a mobile phone, by presence of children in the household, June 2006
Ownership of mobile handset brands
Figure 57: Ownership of mobile handset brands, by age, January-September 2005
Figure 58: Ownership of mobile handset brands, by household income, January-September 2005
Reasons for choosing a service provider
Figure 59: Reasons for choosing a service provider, by gender, June 2006
Figure 60: Reasons for choosing a service provider, by age, June 2006
Figure 61: Reasons for choosing a service provider, by household income, June 2006
Subscription to wireless service providers
Figure 62: Subscription to wireless provider brands, by age, January-September 2005
Figure 63: Subscription to wireless provider brands, by household income, January-September 2005
Figure 64: Subscription to wireless provider brands, by geographic region, January-September 2005
Reasons for changing service provider
Figure 65: Reasons to change mobile phone service provider, by gender, June 2006
Figure 66: Reasons to change mobile phone service provider, by age, June 2006
Figure 67: Reasons to change mobile phone service provider, by household income, June 2006
Figure 68: Interest in technology, by household income, January-September 2005
Figure 69: Reasons to change mobile phone service provider, by presence of children in the household, June 2006
Additional attitudes toward mobile phones
Figure 70: Additional attitudes toward mobile phones, by gender, June 2006
Figure 71: Additional attitudes toward mobile phones, by age, June 2006
Figure 72: Additional attitudes toward mobile phones, by presence of children in the household, June 2006
Usage of extra mobile phone features
Figure 73: Usage of mobile phone features, by gender, June 2006
Figure 74: Usage of mobile phone features, by age, June 2006
Figure 75: Usage of mobile phone features, by household income, June 2006
Figure 76: Usage of mobile phone features, by presence of children in the household, June 2006
Mobile phone satisfaction
Figure 77: Mobile handset and service satisfaction, by gender, June 2006
Figure 78: Graph: Mobile handset and service satisfaction, by gender, June 2006
Figure 79: Mobile handset and service satisfaction, by age, June 2006
Figure 80: Mobile handset and service satisfaction, by household income, June 2006
Figure 81: Mobile handset and service satisfaction, by presence of children in the household, June 2006
Reasons a cell phone is not owned
Figure 82: Reasons a mobile phone is not owned, by gender, June 2006
Figure 83: Reasons a mobile phone is not owned, by age, June 2006
Figure 84: Reasons a mobile phone is not owned, by household income, June 2006
Figure 85: Reasons a mobile phone is not owned, by presence of children in the household, June 2006
Reasons to keep a landline
Figure 86: Cell phone users with landlines, by gender, age, marital status, and income, June 2006
Figure 87: Reasons a landline is kept by mobile phone owners, by gender, June 2006
Figure 88: Reasons a landline is kept by mobile phone owners, by age, June 2006
Figure 89: Reasons a landline is kept by mobile phone owners, by household income, June 2006
 TEENS
Mobile phone penetration
Figure 90: Mobile phone ownership—teens, by gender, January-September 2005
Figure 91: Mobile phone ownership—teens, by age, January-September 2005
Reasons for choosing a mobile phone
Figure 92: Reasons for choosing a mobile phone—teens, by gender, June 2006
Figure 93: Reasons a mobile phone is selected—teens, by age, June 2006
Reasons for choosing a service provider
Figure 94: Reasons for choosing a service provider—teens, by gender, June 2006
Figure 95: Reasons for choosing a service provider—teens, by age, June 2006
Additional attitudes toward mobile phones
Figure 96: Additional attitudes toward mobile phones—teens, by gender, June 2006
Figure 97: Additional attitudes toward mobile phones—teens, by age, June 2006
Usage of extra mobile phone features
Figure 98: Usage of mobile phone features—teens, by gender and age, June 2006
Reasons a cell phone is not owned
Figure 99: Reasons a mobile phone is not owned—teens, by gender, June 2006
Figure 100: Reasons a mobile phone is not owned—teens, by age, June 2006
 RACE/ETHNICITY
Figure 101: Mobile phone ownership, by race/ethnicity, January-September 2005
Figure 102: Mobile phone ownership by Hispanics, by language spoken at home, January-September 2005
Figure 103: Attitudes toward mobile phones, by race/ethnicity, June 2006
Figure 104: Ownership of mobile handset brands, by race/ethnicity, January-September 2005
Figure 105: Reasons for choosing a mobile phone, by race/ethnicity, June 2006
Figure 106: Subscription to wireless provider brands, by race/ethnicity, January-September 2005
Figure 107: Reasons to change mobile phone service provider, by race/ethnicity, June 2006
Figure 108: Additional attitudes toward mobile phones, by race/ethnicity, June 2006
Figure 109: Mobile handset and service satisfaction, by race/ethnicity, June 2006
Figure 110: Reasons a landline is kept by mobile phone owners, by race/ethnicity, June 2006
FUTURE AND FORECAST
 FUTURE TRENDS
45-64 year olds to increase ARPU through ancillary services
Figure 111: U.S. population projections, by age, 2005 and 2010
Spanish-speaking Hispanics remain under-served
Figure 112: U.S. population, by race and Hispanic origin, 2005 and 2010
Increase branding over commoditization
Brand extensions and MVNOs
Growth of content-based services
Geography-based services to increase child ownership of phones
Mobile shopping
Competition for under-served cell phone groups
Increasing emphasis on network quality
Wireless Internet to become larger part of providers’ revenues
Advertising revenue to increase rapidly
Fixed-mobile convergence
Competition from cable and satellite companies
Voice-based entertainment
 MARKET FORECAST
Mobile phone handsets and service
Figure 113: Forecast of total U.S. sales of mobile phone handsets and service, at current and constant prices, 2006-11
Figure 114: Graph: Forecast of total U.S. sales of mobile phone handsets and service, at current and constant prices, 2006-11
Mobile phone service
Figure 115: Forecast of U.S. sales of mobile phone service, at current and constant prices, 2006-11
Mobile phone handsets
Figure 116: Forecast of U.S. sales of mobile phone handsets, at current and constant prices, 2006-11
Forecast factors
APPENDIX: TRADE ASSOCIATIONS
APPENDIX: SIMMONS COHORTS
Figure 117: Married couples cohorts
Figure 118: Single women cohorts
Figure 119: Single men cohorts

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