Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- Overview
- The issues
- No easy way out of mass advertising across traditional and digital
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- Figure 1: Role in service selection, March 2018
- Prepaid places lid on pricing
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- Figure 2: Impression of prepaid services, March 2018
- Churn rates dauntingly low
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- Figure 3: Postpaid churn rates, most recently reported financial quarter, April 2018
- The opportunities
- Additional services, devices, boosting revenue
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- Figure 4: Features subscribers would like to add, March 2018
- Basic elements of service helping to create loyalty
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- Figure 5: Perception of provider among subscribers uninterested in changing carrier, March 2018
- Promotions propel acquisitions
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- Figure 6: Interest in changing carriers and circumstances under which changing would be motivated, March 2018
- What it means
The Market – What You Need to Know
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- Sales survive difficult conditions
- No growth in service sales 2015-17
- Vast majority participate in selection
Market Size
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- Adverse conditions stall sales 2014-17
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- Figure 7: Total US sales and forecast of market, at current prices, 2012-18
Market Breakdown
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- Service sales stall
- Equipment revenue sees substantial growth
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- Figure 8: Wireless service sales vs equipment sales, 2015-17
Market Perspective
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- Everyone is involved
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- Figure 9: Role in service selection, March 2018
- No taint on prepaid
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- Figure 10: Impression of prepaid and smaller carriers, March 2018
Market Factors
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- Lower prices far and away leading reason to change carrier
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- Figure 11: Objectives in changing carrier, by carrier (AT&T/Verizon), March 2018
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- Figure 12: Objectives in changing carrier, by carrier (other brands), March 2018
- Growth via acquisitions tough
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- Figure 13: Postpaid churn rates for most recently reported financial quarter, April 2018
Key Players – What You Need to Know
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- Four networks carry 88% of subscribers
- Vanishing brand distinctions advantageous to smaller services
- Merger, 5G create room for new second tier
What’s Working?
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- Dominance tied to handsets
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- Figure 14: Subscriptions by provider (with subsidiaries included in parent share), March 2018
- Campaigns lead perception
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- Figure 15: Perception of Verizon and AT&T among subscribers uninterested in changing carriers (AT&T/Verizon), March 2018
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- Figure 16: Perception of provider among subscribers uninterested in changing carriers, by carrier, excluding AT&T/Verizon, March 2018
What’s Struggling?
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- Current strugglers likely to see gains from merger
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- Figure 17: Subscriptions by brand, March 2018
What’s Next?
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- 5G coming to a hotspot near you
- Competition with home internet service providers
- T-Mobile and Sprint to merge
- Additional devices retain potential
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- Figure 18: Features subscribers would like to add, March 2018
The Consumer – What You Need to Know
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- Promotions, reviews critical to success
- Customer service and reputation matter
- Few planning to switch, but many open to it
- Younger and lower-income demographics more inclined to switch
- Eight in 10 cite price as reason to switch
Influences on Carrier Selection
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- Personal experience tops marketing
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- Figure 19: Influences on carrier selection, March 2018
- Duopoly reliant on personal experience
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- Figure 20: Influences on carrier selection, by carrier (AT&T/Verizon), March 2018
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- Figure 21: Influences on carrier selection, by carrier (other carriers), March 2018
- Urbanites more likely to have considered marketing
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- Figure 22: Influences on carrier selection, by area of residence, March 2018
- Marketing carries less weight among highest-income group
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- Figure 23: Influences on carrier selection, by household income, March 2018
How Loyal Subscribers Perceive their Carrier
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- Basics fulfilled for those uninterested in change
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- Figure 24: Perception of provider among subscribers uninterested in changing carrier, March 2018
- Hispanics focus on price, customer service
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- Figure 25: Perception of provider among subscribers uninterested in changing carrier, by race and Hispanic origin, March 2018
- With investment, shifts possible in rural and suburban areas
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- Figure 26: Perception of provider among subscribers uninterested in changing carriers, by area of location, March 2018
- Older ages value customer service
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- Figure 27: Perception of provider among subscribers uninterested in changing carriers, by gender and age, March 2018
Interest in Changing Carrier
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- Nearly half of subscribers open to change
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- Figure 28: Interest in changing carriers and circumstances under which changing would be motivated, March 2018
- Interest in change lower at smaller services
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- Figure 29: Interest in changing carriers, by current carrier, March 2018
- Top target by income: $75K-99.9K
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- Figure 30: Interest in changing carriers, by household income, March 2018
- Older ages staying put
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- Figure 31: Interest in changing carriers, by age, March 2018
- Urbanites more likely to move
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- Figure 32: Interest in changing carriers, by area of residence, March 2018
- Improved rewards can aid acquisitions
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- Figure 33: Interest in changing service, CHAID tree output, March 2018
Reasons to Switch
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- Price, data, and speed
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- Figure 34: Objectives in changing carrier, March 2018
- Younger ages less concerned with price
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- Figure 35: Objectives in changing carrier, by age, March 2018
- Lower-income groups less concerned with price
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- Figure 36: Objectives in changing carrier, by household income, March 2018
- Dads motivated by speed, phones, features
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- Figure 37: Objectives in changing carrier, by parental status, March 2018
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- CHAID analysis methodology
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 38: Total US sales and forecast of market, at inflation-adjusted prices, 2012-18
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Appendix – Consumer
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- CHAID tree output
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- Figure 39: Interest in changing service, CHAID tree output, March 2018
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