What you need to know

The US mobile telecommunications market is a $250 billion industry and is undergoing rapid changes with the shift to 5G connectivity. The merger between Sprint and T-Mobile has left three main national mobile network providers: Verizon, AT&T and T-Mobile. The industry is facing new challenges as well as opportunities. COVID-19 accelerated digital behaviors and drove interest in technology solutions, including wearable technology, fixed wireless home internet solutions, bundled entertainment services and ecommerce. These shifts will all have a role in shaping the mobile network landscape.

Key issues covered in this Report

  • The impact of COVID-19 on consumer priorities and attitudes toward mobile networks.

  • Service and equipment segments’ contribution to total revenues and how the balance of spending continues to shift.

  • Which factors drive satisfaction with mobile network providers and areas to focus on for improvement.

  • How 5G smartphones and data speeds will play a critical role driving consumer demand.

This Report was written in January 2021. Consumer research was fielded in December 2020 and thus reflects consumer attitudes in the pandemic environment.

Definition

For the purposes of this Report, Mintel defines the mobile network market as consisting of payments to telecommunications carriers for wireless services and equipment. Network selection, mobile voice, text and data communication are the focus of this Report.

Readers may also be interested in Mintel’s Mobile Network Providers – US, March 2020, Mobile Network Providers – US, April 2019, Mobile Phones – US, March 2019, as well as Mobile Network Providers – US, May 2018.

COVID-19: market context

The first COVID-19 case was confirmed in the US in January 2020. On March 11, the World Health Organization declared COVID-19 a global health pandemic; on March 13, former President Trump declared a national emergency in the US.

Across the US, state-level stay-at-home orders rolled out throughout the months of March and April, remaining in place through May and in some cases June. During this time, referred to as lockdown, non-essential businesses and school districts across the nation closed or shifted to remote operations. Due to restrictions on movement and out-of-home gathering, there were initial concerns within the industry that people would not rely as strongly on mobile data and connectivity. However, as digital connections replaced in-person interactions, these concerns proved unfounded and mobile connectivity increased in importance.

During re-emergence, all 50 states have relaxed stay-at-home orders and allowed businesses to operate with varying levels of social distancing measures in place. The continued spread of COVID-19 infections has driven some states to slow down or reverse course on reopening plans. Mintel anticipates the US will remain in a state of flux through 2021and that mobile network connectivity will remain integral to consumers’ daily lives.

Economic and other assumptions

The analysis provided reflects an estimated range of the market’s prospects in light of the upheaval caused by the COVID-19 crisis. Mintel’s economic assumptions are based on forecasts released by the CBO on July 2, 2020. The CBO expects US GDP to fall by 5.8% in 2020 and recover to 4.0% growth in 2021. The CBO projects the unemployment rate to average 10.6% for the year, with an 8.4% rate for 2021.

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