Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- Overview
- The issues
- Network providers will have difficulty getting consumers to switch
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- Figure 1: Interest in changing mobile network plans, January 2019
- Trust and transparency in data plans are issues among smartphone owners
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- Figure 2: Attitudes toward mobile network providers – data plans, by age, January 2019
- Price sensitivity limits margins
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- Figure 3: Desired features, January 2019
- Equipment revenue under pressure to make up for lagging service revenue
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- Figure 4: Share of total US retail sales of mobile network providers, by segment, 2013-18
- The opportunities
- Dramatic growth in unlimited data plans
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- Figure 5: Mobile network plans, 2011-18
- First mover in 5G development could get consideration from 36% of the market
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- Figure 6: Attitudes toward mobile networks – 5G, by 5G awareness, January 2019
- Bundling entertainment and home internet could attract more cable cutters
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- Figure 7: Attitudes toward mobile network providers – bundling and hotspot services, by age, January 2019
- What it means
The Market – What You Need to Know
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- 5G will have tremendous implications for mobile networks
- Data consumption needs drive higher adoption of unlimited plans
- Low cost plans for vehicles, smart devices, and wearables could increase service revenue
- Younger children are getting on the family plan
Market Size and Forecast
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- 5G technology will spur next wave of spending and development
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- Figure 8: Total US retail sales and fan chart forecast with best- and worst-case scenarios of mobile network providers, at current prices, 2013-23
- Figure 9: Total US retail sales and forecast of mobile network providers, at current prices, 2013-23
Market Breakdown
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- Lowering service revenues place pressure on equipment sales
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- Figure 10: Total US retail sales of mobile network providers, by segment, at current prices, 2016 and 2018
- Figure 11: Total US retail sales of mobile network providers, by segment, at current prices, 2013-18
- Unlimited becoming the norm for voice, text, data plans
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- Figure 12: Mobile network plans, 2011-18
- More US consumers are paying $250+ for their phone bills
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- Figure 13: Mobile network spending, 2012-18
Market Perspective
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- Network providers expanding services beyond the cell phone
- Automotive
- Wearables
- Smart home devices
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- Figure 14: Verizon direct mail, October 2018
- Bundling will consolidate various services with a single provider
Market Factors
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- 5G spurs new front in mobile competition
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- Figure 15: Sprint information email, November 2018
- Figure 16: 5G awareness and knowledge, January 2019
- Phone exclusives may become more prevalent in an early 5G environment
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- Figure 17: Motorola acquisition email, December 2018
- Fight over net neutrality continues
- Younger and younger kids in the household getting cell phones
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- Figure 18: Smartphone ownership, by children’s ages, November 2018
Key Players – What You Need to Know
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- Verizon’s 5G ambitions in US
- T-Mobile-Sprint merger may make it the third largest network provider
- Home cable and internet providers look to go mobile
- AT&T catches flak for 5G E signal icon update
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- Figure 19: The Verge twitter account, January 2019
Brands of Mobile Networks
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- Verizon leads wireless market
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- Figure 20: Top 5 Mobile network providers, 2011-18
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- Figure 21: Mobile network providers, 2011-18
What’s Working?
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- T-Mobile’s “Uncarrier” approach wins over consumers
- Verizon customers feel they have the best coverage and reception
What’s Struggling?
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- Sprint subscribers continue to dwindle
- Verizon catches bad publicity for mishandling forest firefighters’ data during emergency situations
What’s Next?
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- 5G…
- Huawei phones and network equipment?
The Consumer – What You Need to Know
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- Verizon tops market share among providers
- T-Mobile winning the young, the urban, and the multicultural
- Streaming services can spur customers to add new lines
- 5G could be a big first mover advantage opportunity
Mobile Network Providers
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- Verizon is the top wireless provider for consumers
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- Figure 22: Mobile network provider, January 2019
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- Figure 23: Mobile network provider, January 2019
- Verizon subscribers have higher household income
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- Figure 24: Mobile network provider, by household income, January 2019
- Family plans account for the majority of the consumer market
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- Figure 25: Mobile phone plan type – Single or multi-line, January 2019
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- Figure 26: Parental status, by mobile network provider, January 2019
- Bundling home and internet leads to success for Verizon in Northeast
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- Figure 27: Mobile network provider, by region, January 2019
- T-Mobile’s urban presence a winner among multicultural consumers
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- Figure 28: Mobile network provider, by area, January 2019
- Figure 29: Distribution of race and Hispanic origin, by mobile network provider, January 2019
- Apple owners stick to mainstream network providers
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- Figure 30: Mobile network provider, by mobile phone brand, January 2019
- Black smartphone owners more likely to use Metro, Boost, or Cricket
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- Figure 31: Mobile network providers – Boost, Cricket, and Metro, by race and Hispanic origin, January 2019
Mobile Network Plans
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- Business lines account for less than 5% of primary phones
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- Figure 32: Mobile plan type and data plan, January 2019
- T-Mobile and Sprint get more unlimited data customers
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- Figure 33: Mobile data plan, by mobile network provider, January 2019
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- Figure 34: AT&T statement mailing, February 2019
- Younger women more likely than younger men to stay on a family plan
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- Figure 35: Mobile plan type – Single or multi-line, by gender and age, and gender and relationship status, January 2019
- Younger consumers seek unlimited data plans
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- Figure 36: Mobile data plan, January 2019
Interest in Changing Mobile Network Plans
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- Two thirds of subscribers have no interest in changing plans or providers
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- Figure 37: Interest in changing mobile network plans/providers, January 2019
- One in five Sprint customers looking for a change
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- Figure 38: Interest in changing mobile network provider, by mobile network provider, January 2019
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- Figure 39: Sprint informational email, April 2018
- T-Mobile has a better opportunity to upgrade current customers
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- Figure 40: Interest in changing mobile network plans, by mobile network provider, January 2019
- Gen Z and Millennials show stronger interest in changing
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- Figure 41: Interest in changing mobile network plans/provider, by generation, January 2019
- Streaming services incentivize consumers to add phone lines
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- Figure 42: Current mobile network perceptions, by interest in changing mobile network plans, January 2019
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- Figure 43: T-Mobile direct mail, August 2018
- New lines and networks go alongside new smartphone purchases
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- Figure 44: Smartphone purchase intent, interest in changing mobile network plans, January 2019
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- Figure 45: AT&T veterans acquisition email, February 2019
Current Mobile Network Perceptions
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- Coverage and price top consumer perceptions of their own networks
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- Figure 46: Current mobile network perceptions, January 2019
- Verizon wins on coverage and reception quality
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- Figure 47: Current mobile network perceptions, by mobile network provider, January 2019
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- Figure 48: Current mobile network perceptions – Coverage, by mobile network plan, January 2019
- T-Mobile leads “Big 4” in pricing and customer service perceptions
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- Figure 49: Current mobile network perceptions, by mobile network provider, January 2019
- AT&T customers like the phone selection
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- Figure 50: Current mobile network perceptions, by mobile network provider, January 2019
Desired Features
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- Cost and unlimited data top desired features among consumers looking to switch
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- Figure 51: Desired features, January 2019
- Unlimited plans, coverage, and speed have wide appeal in change
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- Figure 52: TURF analysis – Factors in carrier selection, January 2019
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- Figure 53: TURF analysis (Table) – Factors in carrier selection, January 2019
Attitudes toward Mobile Network Providers
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- Data speeds a top priority for younger smartphone owners
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- Figure 54: Attitudes toward mobile network providers – Data speeds, by generation, January 2019
- 5G marketing should be focused on younger men
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- Figure 55: Attitudes toward mobile networks – 5G, by gender and age, January 2019
- Opportunity to bundle additional services among English-speaking Hispanic Millennials
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- Figure 56: Attitudes toward mobile network providers – bundling and replacement, by generation and Hispanic-origin, January 2019
- Distrust more prevalent among younger smartphone owners
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- Figure 57: Attitudes toward mobile network providers – Throttling and data limits, by generation and Hispanic-origin, January 2019
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- Figure 58: Verizon direct mail, January 2019
Consumer Segmentation
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- Four segments of smartphone owners with implications for mobile network providers
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- Figure 59: Network segments of attitudes toward mobile network service, January 2019
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- Figure 60: Mobile network provider, by network segments, January 2019
- Mainstreamers
- Characteristics
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- Figure 61: Profile of Mainstreamers, January 2019
- Opportunities
- Status Qu’old
- Characteristics
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- Figure 62: Profile of Status Qu’old, January 2019
- Opportunities
- Network Changers
- Characteristics
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- Figure 63: Profile of Network Changers, January 2019
- Opportunities
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- Figure 64: Smartphone purchase intent, by segments, January 2019
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- Figure 65: Desired features from next phone, by segments, January 2019
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- Figure 66: Interest in changing mobile network plans, by segments, January 2019
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- Figure 67: Attitudes toward smartphones and mobile networks, by segments, January 2019
- Family Plan Members
- Characteristics
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- Figure 68: Profile of Family Plan Members, January 2019
- Opportunities
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- Figure 69: Attitudes toward mobile networks – bundling, by segments, January 2019
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- Figure 70: Attitudes toward mobile networks – Bundling, by segments, January 2019
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
- TURF analysis – Methodology
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- Figure 71: TURF Analysis (Table) – Factors in carrier selection, January 2019
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