Table of Contents
Executive Summary
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- Market overview
- What you need to know about mobile network providers
- The issues
- Family plan participation is around 60%
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- Figure 1: Type of network plan, by gender and age, January 2020
- Wireless customers wary when it comes to how their data is delivered
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- Figure 2: Attitudes toward mobile network plans – Data plans and speed, January 2020
- The opportunities
- 5G connections could spur new consumer spending in the category
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- Figure 3: Attitudes toward mobile network plans – 5G, January 2020
- Two in five wireless customers considering making a change to their wireless plans
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- Figure 4: Interest in changing mobile network plans, January 2020
- Key trends
- Bundling entertainment streaming will continue
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- Figure 5: Index of triggers to changing mobile network plans, by generation, January 2020
- Telecoms branching out into new services
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- Figure 6: Attitudes toward mobile network plans – Bundled services, January 2020
- What it means
The Market – What You Need to Know
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- Steady growth forecast through 2024
- Tax reform bolsters equipment spending
- 5G awareness continues to grow
- Connected devices represent untapped revenue potential
Market Size and Forecast
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- Consistent growth expected through 2024
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- Figure 7: Total US sales and fan chart forecast of mobile network spending, with best- and worst-case scenarios, at current prices, 2014-24
- Figure 8: Total US retail sales and forecast of mobile network providers, at current prices, 2014-24
Market Breakdown
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- Equipment spending increases dramatically in 2018
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- Figure 9: Total US retail sales of mobile network providers, by segment, at current prices, 2014-19
- Mobile device usage and network subscription nearly ubiquitous
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- Figure 10: Mobile device ownership and network subscribers, 2014-19
- Unlimited data plans continue growth
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- Figure 11: Mobile network plans, 2013-19
- Consumer spending on mobile service remains consistent
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- Figure 12: Mobile network monthly spend, 2013-19
Market Factors
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- 5G awareness and knowledge is improving
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- Figure 13: 5G awareness and knowledge, January 2019, August 2019, January 2020
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- Figure 14: Verizon 5G mobile banner advertisement, February 2020
- Figure 15: T-Mobile 5G mobile banner advertisement, January 2020
- Bundling wireless and home internet will likely continue to grow
Market Perspective
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- Connected devices with dedicated data connections
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- Figure 16: Smartwatch behaviors, November 2019
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- Figure 17: T-Mobile upgrade email, January 2020
Key Players – What You Need to Know
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- Sprint and T-Mobile merger gets green light, is nearing finalization
- 5G gets major exposure from top network campaigns
- T-Mobile continues momentum and growth
- Sprint struggles to compete against the rest of the “Big 4”
Breakdown of Mobile Network Providers
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- Verizon and AT&T account for more than half of the wireless market
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- Figure 18: Mobile network providers – Simmons data, April 2018-June 2019
- T-Mobile, Verizon and “Other” networks show growth
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- Figure 19: Mobile network providers – Simmons data, 2012-19
What’s Working
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- T-Mobile subscriber growth continues
- Verizon strengthens its leading position in the market
What’s Struggling
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- Sprint can’t seem to meet customer expectations
What to Watch
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- T-Mobile and Sprint merger reaching final stages of approval
The Consumer – What You Need to Know
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- Majority of consumers have unlimited data plans
- Family plans are the most common plans in the market
- Verizon leads the industry with the highest market share
- T-Mobile outperforms among young and multicultural
- T-Mobile leads the “Big 4” in customer satisfaction
- Customer service, price and coverage are top factors driving customer satisfaction
- Four in 10 considering a change to their wireless plans
- Bundling streaming services could attract Gen Z subscribers
- 5G connectivity will have a significant impact on consumer decisions
- 5G early adopter consumer segment identified
Consumer Mobile Network Plans
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- Two thirds of consumers have post-paid subscription plans
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- Figure 20: Breakdown of post-paid and pre-paid wireless plans, January 2020
- Family plans account for six in 10 network subscribers
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- Figure 21: Type of network plan, January 2019
- Women are more likely than men to be participants on a family plan
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- Figure 22: Type of network plan, by gender and marital status, January 2020
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- Figure 23: Type of network plan, by gender and age, January 2020
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- Figure 24: Type of network plan among 18-34 year olds, by gender and marital status, January 2020
- Majority of subscribers have unlimited data plans
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- Figure 25: Mobile network data plans, January 2019
- Pre-paid plans skew toward single line holders
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- Figure 26: Breakdown of pre- and post-paid network plans, by type of network plans, January 2020
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- Figure 27: Type of network plan, by pre- and post-paid subscribers, January 2020
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- Figure 28: Breakdown of pre- and post-paid subscribers, by household income, January 2020
Mobile Network Providers
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- Verizon is top carrier followed by AT&T
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- Figure 29: Mobile network providers, January 2020
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- Figure 30: Mobile network providers – breakout, January 2020
- T-Mobile outperforms among multicultural and young
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- Figure 31: Age breakdown, by mobile network provider, January 2020
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- Figure 32: Breakdown of race and Hispanic origin, by mobile network providers, January 2020
- Figure 33: T-Mobile Tuesdays promotional email – Dark Phoenix, June 2019
- Alternative carriers predominantly have single-line subscribers
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- Figure 34: Type of network plan, by mobile network providers, January 2020
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- Figure 35: Mobile network providers, index of age and household income to all, January 2020
- Verizon and AT&T subscribers have highest household incomes
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- Figure 36: Breakdown of household income, by mobile network providers, January 2020
- T-Mobile customers primarily in urban and suburban areas
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- Figure 37: Breakdown of area, by mobile network provider, January 2020
- T-Mobile and Sprint subscribers go for unlimited plans
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- Figure 38: Breakdown of data plan types, by mobile network provider, January 2020
Mobile Network Satisfaction
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- Subscribers are most satisfied with coverage and phone selection
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- Figure 39: Overall mobile network satisfaction, January 2020
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- Figure 40: Mobile network satisfaction, January 2020
- T-Mobile leads the major providers in overall customer satisfaction
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- Figure 41: Overall satisfaction with mobile network service provider, by mobile network provider, January 2020
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- Figure 42: Satisfaction with customer service, by mobile network provider, January 2020
- Figure 43: Satisfaction with price, by mobile network provider, January 2020
- Key Driver Analysis – Overall satisfaction
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- Figure 44: Key drivers of overall satisfaction with mobile service provider – Correlation coefficients (R values), January 2020
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- Figure 45: Key drivers of satisfaction with mobile service provider – Chart, January 2020
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- Figure 46: Key drivers of overall satisfaction with mobile service provider, by mobile service provider, January 2020
- AT&T: Key Driver Analysis of overall satisfaction
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- Figure 47: Key drivers of satisfaction with AT&T, January 2020
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- Figure 48: AT&T promotional email, January 2020
- Figure 49: AT&T Samsung Note10 +5G animated promotional banner ad, February 2020
- Figure 50: AT&T iPhone promotion online banner ad, January 2020
- Verizon: Key Driver Analysis of overall satisfaction
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- Figure 51: Key drivers of satisfaction with Verizon, January 2020
- T-Mobile: Key Driver Analysis of overall satisfaction
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- Figure 52: Key drivers of satisfaction with T-Mobile, January 2020
- Sprint: Key Driver Analysis of overall satisfaction
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- Figure 53: Key drivers of satisfaction with Sprint, January 2020
- Other networks: Key Driver Analysis of overall satisfaction
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- Figure 54: Key drivers of satisfaction with other mobile service providers, January 2020
Interest in Changing Mobile Network Plans
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- Six in 10 wireless consumers have no interest in changing plans
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- Figure 55: Interest in changing mobile network plans, January 2020
- T-Mobile has lowest customer attrition consideration
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- Figure 56: Interest in changing mobile network plans, by mobile network provider, January 2020
- Parents need to be prioritized for upgrade messaging
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- Figure 57: Interest in changing mobile network plans, by gender and presence of children in the household, January 2020
Triggers to Changing Mobile Network Plans
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- Price is king when it comes to inspiring change
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- Figure 58: Triggers to changing mobile network plans, January 2020
- TURF analysis – Streaming services don’t move the needle that much
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- Figure 59: TURF analysis – Factors in carrier selection, January 2020
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- Figure 60: Table – TURF analysis – Factors in carrier selection, January 2020
- Gen Z wants streaming services
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- Figure 61: Index of triggers to changing mobile network plans, by generation, January 2020
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- Figure 62: Verizon Disney+ promotional email, February 2020
- Figure 63: T-Mobile Magenta Plus promotional email, August 2019
- Parents could be convinced to replace cable with wireless internet
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- Figure 64: Triggers to changing mobile network plans, by gender and presence of children under 18 in the household, January 2020
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- Figure 65: Index of triggers to changing mobile network plans, by gender and presence of children under 18 in the household, January 2020
- Sprint subscribers most likely to cite various factors as catalyst for change
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- Figure 66: Index of triggers to changing mobile network plans, by mobile network provider, January 2020
Attitudes toward Mobile Network Plans
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- 5G has a growing influence on mobile network decisions
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- Figure 67: Attitudes toward mobile network plans – 5G, January 2020
- Concerns over throttling and caps are common
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- Figure 68: Attitudes toward mobile network plans – Data plans and speed, January 2020
- Consumers are open to creative ways to save money
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- Figure 69: Attitudes toward mobile network plans – Family plans and bundled services, January 2020
- Figure 70: T-Mobile Home Internet direct mail, December 2019
- Younger men most willing to get separate data plans for alternative devices
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- Figure 71: Attitudes toward mobile network plans – Device dedicated data plans, by gender and age, January 2020
- T-Mobile consumers looking forward to the impact of 5G
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- Figure 72: Attitudes toward mobile network plans – 5G and devices, by mobile network provider, January 2020
Consumer Segmentation – Attitudes toward Mobile Network Plans
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- Figure 73: Mobile network subscriber segments, January 2020
- 5G Acolytes (27%)
- Characteristics
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- Figure 74: Profile of 5G Acolytes, January 2020
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- Figure 75: Attitudes toward mobile network plans, by consumer segments, January 2020
- Opportunities
- Demanding Subscribers (29%)
- Characteristics
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- Figure 76: Profile of Demanding Subscribers, January 2020
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- Figure 77: Overall satisfaction with mobile network service, by consumer segments, January 2020
- Opportunities
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- Figure 78: Type of network plan, by consumer segments, January 2020
- Late Adopters (25%)
- Characteristics
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- Figure 79: Profile of Late Adopters, January 2020
- Opportunities
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- Figure 80: Triggers to changing mobile network plans, by consumer segments, January 2020
- 5G Considerers (19%)
- Characteristics
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- Figure 81: Profile of 5G Considerers, January 2020
- Opportunities
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Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 82: Total US sales and forecast of mobile network spending, at inflation-adjusted prices, 2014-24
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Appendix – Key Driver Analysis
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- Interpretation of results
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- Figure 83: Level of satisfaction with mobile service providers – Key driver output, January 2020
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- Figure 84: Level of satisfaction with AT&T – Key driver output, January 2020
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- Figure 85: Level of satisfaction with Verizon – Key driver output, January 2020
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- Figure 86: Level of satisfaction with T-Mobile – Key driver output, January 2020
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- Figure 87: Level of satisfaction with Sprint – Key driver output, January 2020
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- Figure 88: Level of satisfaction with Other mobile service providers – Key driver output, January 2020
- TURF methodology
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