What you need to know

With phone penetration approaching universality, the only ways for service providers to grow is by poaching customers from other carriers, or by increasing ARPU (Average Revenue Per User). In response to this need, this report addresses how to hone messaging and promote data consumption. The report analyzes how subscribers view their current provider, and whether they are willing to switch carriers. Subjects of focus include use of cellular service for laptops and tablets, attitudes to mobile internet, providers under consideration for future use, and reasons for wanting to switch carriers, with an eye toward how subscribers can be won over from competitors.

Definition

Mintel defines this market to include payments to telecommunications carriers for wireless-service subscriptions. Mobile voice and data communication among adults aged 18+ is the focus of the report. This report builds on the analysis presented in Mintel’s Mobile Phone Service – US, February 2013. Mintel covers the mobile phone hardware, mobile advertising, mobile apps, mobile gaming, and tablets in their own dedicated reports:

  • Tablets – US, July 2013

  • Mobile Apps – US, September 2013

  • Mobile Phones – US, February 2013

  • Mobile Advertising – US, May 2013

  • Mobile Gaming – US, October 2013

Data sources

Sales data

Market Size and Forecast: Historical sales 2008-12 are sourced from CTIA – The Wireless Association. Estimated sales for 2013 and forecasts 2014-18 are original to Mintel.

Consumer survey data

For the purposes of this report, Mintel commissioned exclusive consumer research through GMI to explore consumer attitudes and behaviors toward mobile voice and data services. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted in December 2013 among a sample of 2,000 adults aged 18+ with access to the internet.

Mintel selects survey respondents so that they are proportionally balanced to the entire US adult population based on the key demographics of gender, age, household income, and region. Mintel also slightly oversamples, relative to the population, respondents that are Hispanic or Black to ensure an adequate representation of these groups in our survey results. Please note that our surveys are conducted online and in English only. Hispanics who are not online and/or do not speak English are not included in our survey results.

Mintel has also analyzed data from Experian Marketing Services, using the Experian Marketing Services National Consumer Study (NCS) and the Experian Marketing Services National Hispanic Consumer Study (NHCS). Data for this report include the NCS/NHCS Summer 2013 six-month study, carried out during January-September 2013 with a sample of 11,700 adults aged 18+, with results weighted to represent the US adult population. Mintel trends data from the NCS/NHCS data, including the following surveys:

  • Experian Marketing Services Summer 2008, January-September 2008: results based on 11,982 adults aged 18+

  • Experian Marketing Services Summer 2011, January-September 2011: results based on 12,118 adults aged 18+

While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (White, Black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race.

Advertising creative

Mintel presents television commercials posted on brand’s official sites on YouTube.

Abbreviations and terms

Abbreviations

The following is a list of abbreviations used in this report.

4K Four thousand (lines of resolution)
ARPU Average revenue per user
CPI Consumer Price Index
EMS Experian Marketing Services
GB Gigabyte
Gbps Gigabits per second
HD High-definition
ISP Internet Service Provider
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Terms

In order to provide an inflation-adjusted price value for markets, Mintel uses the CPI to deflate current prices. The CPI is defined as follows:

CPI The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.



The CPI and its components are typically used to adjust other economic series for price changes and to translate these series into inflation-free dollars. Examples of series adjusted by the CPI include retail sales, hourly and weekly earnings, and components of the national income and product accounts. In addition, and in Mintel reports, the CPI is used as a deflator of the value of the consumer’s dollar to find its purchasing power. The purchasing power of the consumer's dollar measures the change in the value to the consumer of goods and services that a dollar will buy at different dates.



The CPI is generally the best measure for adjusting payments to consumers when the intent is to allow consumers to purchase, at today’s prices, a market basket of goods and services equivalent to one that they could purchase in an earlier period. It is also the best measure to use to translate retail sales into real or inflation-free dollars.



Based on Bureau of Labor Statistics definition.
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