Table of Contents
Executive Summary
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- Top takeaways
- Market overview
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- Figure 1: Total US sales and fan chart forecast of mobile network providers, at current prices, 2015-25
- Impact of COVID-19 on mobile network providers
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- Figure 2: Short, medium and long term impact of COVID-19 on digital services and mobile network providers, February 2021
- Re-emergence
- Recovery
- Opportunities and Challenges
- Family plan participation increases during COVID-19
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- Figure 3: Type of network plan, January 2020 and December 2020
- Customer service, coverage and pricing drive satisfaction
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- Figure 4: Key drivers of satisfaction with mobile service provider – impact of factors, December 2020
- 5G critical to future success, though some consumers need convincing
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- Figure 5: Attitudes toward mobile network providers – 5G, December 2020
The Market – Key Takeaways
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- Mobile network revenue to remain stable through 2025
- 5G upgrades should drive equipment sales for network providers
- COVID-19 leads many young adults back to a family plan
- Fixed wireless looks to play a role for delivering home internet
Market Size and Forecast
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- Mobile network market value forecast to pace inflation
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- Figure 6: Total US sales and fan chart forecast of mobile network providers, at current prices, 2015-25
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- Figure 7: Total US sales and forecast of mobile network providers, at current prices, 2015-25
- Impact of COVID-19 on the mobile network industry
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- Figure 8: Short, medium and long term impact of COVID-19 on digital services and mobile network providers, February 2021
- Lockdown
- Re-emergence
- Recovery
- Learnings from the 2007-09 recession
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- Figure 9: Total US consumer expenditure on communications and technology at current prices, 2007-12
Segment Performance
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- Services account for bulk of revenue, but losing ground to equipment
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- Figure 10: Total US sales and forecast of mobile network providers, by segment, at current prices, 2015-25
- Figure 11: Total US sales and forecast of mobile network providers, by segment, at current prices, 2015-25
- Equipment should continue to drive growth
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- Figure 12: Sales and fan chart forecast of mobile network provider equipment, 2015-25
- Smartphone ownership puts priority on data connection and speed
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- Figure 13: Sales and fan chart forecast of mobile network provider services, 2015-25
- Cost of mobile network plans remaining stable
Market Factors
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- New administration could bring net neutrality back into the conversation
- DISH completes purchase of Boost Mobile
- Broadband subsidies available from recent COVID-19 stimulus package
- Wireless service essential despite the economic downturn from COVID-19
- Increase in parent-child cohabitation increases family plan participation
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- Figure 14: Unemployment rate, by young adult age groups, January 2020-January 2021
- Businesses look to 5G and connectivity for future transformation
- Future success will hinge on 5G performance
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- Figure 15: Interest in 5G networks and 5G smartphones, December 2020
Market Opportunities
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- 5G smartphone upgrades offer immediate hardware revenue
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- Figure 16: Verizon Samsung Galaxy 5G smartphone online promotion, January 2021
- Figure 17: T-Mobile iPhone 12 online promotion, January 2021
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- Figure 18: AT&T iPhone 12 online promotion, January 2021
- Home internet and wireless service bundles gaining steam
Companies and Brands – Key Takeaways
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- Verizon continues market-leading position with its strong coverage
- T-Mobile and alternative carriers showing growth
- Carriers are including 5G in standard data plans for consumers
Market Share
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- Verizon continues to lead US wireless market
- T-Mobile and smaller network providers showing growth
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- Figure 19: Mobile network providers, December 2020
Competitive Strategies
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- Standardizing 5G mobile data plans will spur device purchases
- Bundling promotions highly visible
- Entertainment bundles
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- Figure 20: Verizon Start Unlimited email promotion, December 2020
- Figure 21: T-Mobile acquisition email, December 2020
- Figure 22: AT&T Wireless acquisition email, December 2020
- Device bundles look to attract smartphone shoppers
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- Figure 23: T-Mobile free kids smart watch email promotion, March 2020
The Consumer – Key Takeaways
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- Family plan participation increases in 2020
- Merger between T-Mobile and Sprint leads to three major national carriers
- Low churn rate among major providers
- Mobile networks executing on key performance metrics for satisfaction
- Four in 10 wireless consumers considering changing plans
- Future success will rely on 5G
Trends Drivers
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- Connection and cost shape consumer behavior in the mobile network category
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- Figure 24: Mintel Trend Drivers and supporting Pillars – Technology, Value
Consumer Mobile Network Plans
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- Post-paid plans continue to account for the majority of the market
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- Figure 25: Breakdown of post-paid and prepaid wireless plans, January 2020 and December 2020
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- Figure 26: Pre- and post-paid plans, by household income, December 2020
- COVID-19 spurs increase in family plan usage
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- Figure 27: Type of network plan – Single line vs family plans, January 2020 and December 2020
- Family plan participation increases across all age and gender groups
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- Figure 28: Type of network plan, by gender and age, January 2020 and December 2020
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- Figure 29: Type of network plan, by gender and marital status, January 2020 and December 2020
- Unlimited data plan participation increases
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- Figure 30: Mobile network data plans, January 2020 and December 2020
- Family plan participation increases across both pre- and post-paid accounts
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- Figure 31: Type of network plan, by pre- and post-paid subscribers, January 2020
Mobile Network Providers
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- T-Mobile loses some Sprint subscribers in merger
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- Figure 32: Mobile network providers, December 2020
- Figure 33: Mobile network providers – Share, January 2020 and December 2020
- Merger with Sprint shifts T-Mobile subscriber demographics
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- Figure 34: Breakdown of age, by mobile network providers, January 2020 and December 2020
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- Figure 35: Breakdown of race and Hispanic origin, by mobile network providers, January 2020 and December 2020
- “Big 3” networks gained wealthier customer base over 2020
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- Figure 36: Breakdown of household income, by mobile network providers, January 2020 and December 2020
- Family line participation increased across all network providers
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- Figure 37: Type of network plan, by mobile network providers, January 2020 and December 2020
- Verizon and AT&T reduce gap in unlimited data plan participation
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- Figure 38: Breakdown of data plan types, by mobile network provider, January 2020 and December 2020
- More than half have been with their carrier for more than five years
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- Figure 39: Length of service, by mobile network providers, December 2020
- Majority of subscriptions happen in-store – but digital is growing
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- Figure 40: Mobile network sign-up method, December 2020
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- Figure 41: Mobile network sign-up method, by length of service, December 2020
Mobile Network Satisfaction
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- Customers widely satisfied with their network providers
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- Figure 42: Overall mobile network satisfaction, December 2020
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- Figure 43: Mobile network satisfaction, December 2020
- Customer service, coverage and pricing drive satisfaction
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- Figure 44: Key drivers of satisfaction with mobile service provider – impact of factors, December 2020
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- Figure 45: Key drivers of satisfaction with mobile service provider, December 2020
- Methodology
- T-Mobile absorbs dissatisfied Sprint customers
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- Figure 46: Overall network satisfaction, by mobile network provider, January 2020 and December 2020
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- Figure 47: Galaxy Note Sprint customer screenshot, January 2021
- Figure 48: T-Mobile Sprint informational email, December 2020
- Networks outside the “Big 3” win on pricing
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- Figure 49: Satisfaction with mobile network factors, by mobile network provider, December 2020
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- Figure 50: Satisfaction with mobile network factors, by mobile network provider, by plan type, December 2020
- T-Mobile – Key drivers of satisfaction
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- Figure 51: Key drivers of satisfaction with T-Mobile, December 2020
- Verizon – Key drivers of satisfaction
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- Figure 52: Key drivers of satisfaction with Verizon, December 2020
- AT&T – Key drivers of satisfaction
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- Figure 53: Key drivers of satisfaction with AT&T, December 2020
Interest in Changing Mobile Network Plans
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- Four in 10 wireless consumers considering changing plans
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- Figure 54: Interest in changing mobile network plans, December 2020
- More T-Mobile customers considering a change at the end of 2020
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- Figure 55: Interest in changing mobile network plans, by mobile network provider, January 2020 and December 2020
- Parents remain key target for networks in 2021
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- Figure 56: Interest in changing mobile network plans, by gender and presence of children in the household, December 2020
- Black consumers most likely to consider a change to their mobile plan
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- Figure 57: Interest in changing mobile network plans, by race and Hispanic origin, December 2020
- Reasons for changing carriers differ by age
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- Figure 58: Reasons for considering changing network providers, December 2020
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- Figure 59: Reasons for considering changing network providers, by age, December 2020
Attitudes toward Mobile Network Providers
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- 5G critical to future success
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- Figure 60: Attitudes toward mobile network providers – 5G, December 2020
- High-quality network management apps improve the customer experience
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- Figure 61: Attitudes toward mobile network providers – Network app, December 2020
- Bundles are an attractive option for many mobile network users
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- Figure 62: Attitudes toward mobile network providers – Bundling and extra data plans, December 2020
- Consumers unwilling to compromise on network performance
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- Figure 63: Attitudes toward mobile network providers – Network performance, December 2020
Consumer Segmentation – Attitudes toward Mobile Network Providers
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- Figure 64: Consumer segmentation of attitudes toward mobile network providers, December 2020
- Plan Explorers (25%)
- Characteristics
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- Figure 65: Profile of Plan Explorers, December 2020
- Opportunities
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- Figure 66: Attitudes toward mobile network providers, by consumer segments, December 2020
- Irate Subscribers (33%)
- Characteristics
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- Figure 67: Profile of Irate Subscribers, December 2020
- Opportunities
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- Figure 68: Overall mobile network satisfaction, by consumer segments, December 2020
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- Figure 69: Reasons for considering changing mobile network providers, by consumer segments, December 2020
- Digital Dynamos (21%)
- Characteristics
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- Figure 70: Profile of Digital Dynamos, December 2020
- Opportunities
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- Figure 71: Mobile network sign-up method, by consumer segments, December 2020
- Network Loyalists (21%)
- Characteristics
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- Figure 72: Profile of Network Loyalists, December 2020
- Opportunities
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- Figure 73: Attitudes toward mobile network providers, by consumer segments, December 2020
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Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Forecast
- Consumer survey data
- Marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 74: Total US retail sales and forecast of mobile network providers, at inflation-adjusted prices, 2015-25
- Figure 75: Total US retail sales of mobile network providers, by segment, at current prices, 2018 and 2020
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Appendix – Key Driver Analysis
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- Interpretation of results
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- Figure 76: Level of satisfaction with mobile service provider – Key driver output, December 2020
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- Figure 77: Level of satisfaction with AT&T – Key driver output, December 2020
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- Figure 78: Level of satisfaction with Verizon – Key driver output, December 2020
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- Figure 79: Level of satisfaction with T-Mobile – Key driver output, December 2020
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