Mobile Network Providers - US - March 2020

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Market overview
What you need to know about mobile network providers
The issues
Family plan participation is around 60%
Figure 1: Type of network plan, by gender and age, January 2020
Wireless customers wary when it comes to how their data is delivered
Figure 2: Attitudes toward mobile network plans – Data plans and speed, January 2020
The opportunities
5G connections could spur new consumer spending in the category
Figure 3: Attitudes toward mobile network plans – 5G, January 2020
Two in five wireless customers considering making a change to their wireless plans
Figure 4: Interest in changing mobile network plans, January 2020
Key trends
Bundling entertainment streaming will continue
Figure 5: Index of triggers to changing mobile network plans, by generation, January 2020
Telecoms branching out into new services
Figure 6: Attitudes toward mobile network plans – Bundled services, January 2020
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Steady growth forecast through 2024
Tax reform bolsters equipment spending
5G awareness continues to grow
Connected devices represent untapped revenue potential
MARKET SIZE AND FORECAST
Consistent growth expected through 2024
Figure 7: Total US sales and fan chart forecast of mobile network spending, with best- and worst-case scenarios, at current prices, 2014-24
Figure 8: Total US retail sales and forecast of mobile network providers, at current prices, 2014-24
MARKET BREAKDOWN
Equipment spending increases dramatically in 2018
Figure 9: Total US retail sales of mobile network providers, by segment, at current prices, 2014-19
Mobile device usage and network subscription nearly ubiquitous
Figure 10: Mobile device ownership and network subscribers, 2014-19
Unlimited data plans continue growth
Figure 11: Mobile network plans, 2013-19
Consumer spending on mobile service remains consistent
Figure 12: Mobile network monthly spend, 2013-19
MARKET FACTORS 
5G awareness and knowledge is improving
Figure 13: 5G awareness and knowledge, January 2019, August 2019, January 2020
Figure 14: Verizon 5G mobile banner advertisement, February 2020
Figure 15: T-Mobile 5G mobile banner advertisement, January 2020
Bundling wireless and home internet will likely continue to grow
MARKET PERSPECTIVE
Connected devices with dedicated data connections
Figure 16: Smartwatch behaviors, November 2019
Figure 17: T-Mobile upgrade email, January 2020
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Sprint and T-Mobile merger gets green light, is nearing finalization
5G gets major exposure from top network campaigns
T-Mobile continues momentum and growth
Sprint struggles to compete against the rest of the “Big 4”
BREAKDOWN OF MOBILE NETWORK PROVIDERS
Verizon and AT&T account for more than half of the wireless market
Figure 18: Mobile network providers – Simmons data, April 2018-June 2019
T-Mobile, Verizon and “Other” networks show growth
Figure 19: Mobile network providers – Simmons data, 2012-19
WHAT’S WORKING
T-Mobile subscriber growth continues
Verizon strengthens its leading position in the market
WHAT’S STRUGGLING
Sprint can’t seem to meet customer expectations
WHAT TO WATCH
T-Mobile and Sprint merger reaching final stages of approval
THE CONSUMER – WHAT YOU NEED TO KNOW 
Majority of consumers have unlimited data plans
Family plans are the most common plans in the market
Verizon leads the industry with the highest market share
T-Mobile outperforms among young and multicultural
T-Mobile leads the “Big 4” in customer satisfaction
Customer service, price and coverage are top factors driving customer satisfaction
Four in 10 considering a change to their wireless plans
Bundling streaming services could attract Gen Z subscribers
5G connectivity will have a significant impact on consumer decisions
5G early adopter consumer segment identified
CONSUMER MOBILE NETWORK PLANS 
Two thirds of consumers have post-paid subscription plans
Figure 20: Breakdown of post-paid and pre-paid wireless plans, January 2020
Family plans account for six in 10 network subscribers
Figure 21: Type of network plan, January 2019
Women are more likely than men to be participants on a family plan
Figure 22: Type of network plan, by gender and marital status, January 2020
Figure 23: Type of network plan, by gender and age, January 2020
Figure 24: Type of network plan among 18-34 year olds, by gender and marital status, January 2020
Majority of subscribers have unlimited data plans
Figure 25: Mobile network data plans, January 2019
Pre-paid plans skew toward single line holders
Figure 26: Breakdown of pre- and post-paid network plans, by type of network plans, January 2020
Figure 27: Type of network plan, by pre- and post-paid subscribers, January 2020
Figure 28: Breakdown of pre- and post-paid subscribers, by household income, January 2020
MOBILE NETWORK PROVIDERS
Verizon is top carrier followed by AT&T
Figure 29: Mobile network providers, January 2020
Figure 30: Mobile network providers – breakout, January 2020
T-Mobile outperforms among multicultural and young
Figure 31: Age breakdown, by mobile network provider, January 2020
Figure 32: Breakdown of race and Hispanic origin, by mobile network providers, January 2020
Figure 33: T-Mobile Tuesdays promotional email – Dark Phoenix, June 2019
Alternative carriers predominantly have single-line subscribers
Figure 34: Type of network plan, by mobile network providers, January 2020
Figure 35: Mobile network providers, index of age and household income to all, January 2020
Verizon and AT&T subscribers have highest household incomes
Figure 36: Breakdown of household income, by mobile network providers, January 2020
T-Mobile customers primarily in urban and suburban areas
Figure 37: Breakdown of area, by mobile network provider, January 2020
T-Mobile and Sprint subscribers go for unlimited plans
Figure 38: Breakdown of data plan types, by mobile network provider, January 2020
MOBILE NETWORK SATISFACTION
Subscribers are most satisfied with coverage and phone selection
Figure 39: Overall mobile network satisfaction, January 2020
Figure 40: Mobile network satisfaction, January 2020
T-Mobile leads the major providers in overall customer satisfaction
Figure 41: Overall satisfaction with mobile network service provider, by mobile network provider, January 2020
Figure 42: Satisfaction with customer service, by mobile network provider, January 2020
Figure 43: Satisfaction with price, by mobile network provider, January 2020
Key Driver Analysis – Overall satisfaction
Figure 44: Key drivers of overall satisfaction with mobile service provider – Correlation coefficients (R values), January 2020
Figure 45: Key drivers of satisfaction with mobile service provider – Chart, January 2020
Figure 46: Key drivers of overall satisfaction with mobile service provider, by mobile service provider, January 2020
AT&T: Key Driver Analysis of overall satisfaction
Figure 47: Key drivers of satisfaction with AT&T, January 2020
Figure 48: AT&T promotional email, January 2020
Figure 49: AT&T Samsung Note10 +5G animated promotional banner ad, February 2020
Figure 50: AT&T iPhone promotion online banner ad, January 2020
Verizon: Key Driver Analysis of overall satisfaction
Figure 51: Key drivers of satisfaction with Verizon, January 2020
T-Mobile: Key Driver Analysis of overall satisfaction
Figure 52: Key drivers of satisfaction with T-Mobile, January 2020
Sprint: Key Driver Analysis of overall satisfaction
Figure 53: Key drivers of satisfaction with Sprint, January 2020
Other networks: Key Driver Analysis of overall satisfaction
Figure 54: Key drivers of satisfaction with other mobile service providers, January 2020
INTEREST IN CHANGING MOBILE NETWORK PLANS
Six in 10 wireless consumers have no interest in changing plans
Figure 55: Interest in changing mobile network plans, January 2020
T-Mobile has lowest customer attrition consideration
Figure 56: Interest in changing mobile network plans, by mobile network provider, January 2020
Parents need to be prioritized for upgrade messaging
Figure 57: Interest in changing mobile network plans, by gender and presence of children in the household, January 2020
TRIGGERS TO CHANGING MOBILE NETWORK PLANS
Price is king when it comes to inspiring change
Figure 58: Triggers to changing mobile network plans, January 2020
TURF analysis – Streaming services don’t move the needle that much
Figure 59: TURF analysis – Factors in carrier selection, January 2020
Figure 60: Table – TURF analysis – Factors in carrier selection, January 2020
Gen Z wants streaming services
Figure 61: Index of triggers to changing mobile network plans, by generation, January 2020
Figure 62: Verizon Disney+ promotional email, February 2020
Figure 63: T-Mobile Magenta Plus promotional email, August 2019
Parents could be convinced to replace cable with wireless internet
Figure 64: Triggers to changing mobile network plans, by gender and presence of children under 18 in the household, January 2020
Figure 65: Index of triggers to changing mobile network plans, by gender and presence of children under 18 in the household, January 2020
Sprint subscribers most likely to cite various factors as catalyst for change
Figure 66: Index of triggers to changing mobile network plans, by mobile network provider, January 2020
ATTITUDES TOWARD MOBILE NETWORK PLANS
5G has a growing influence on mobile network decisions
Figure 67: Attitudes toward mobile network plans – 5G, January 2020
Concerns over throttling and caps are common
Figure 68: Attitudes toward mobile network plans – Data plans and speed, January 2020
Consumers are open to creative ways to save money
Figure 69: Attitudes toward mobile network plans – Family plans and bundled services, January 2020
Figure 70: T-Mobile Home Internet direct mail, December 2019
Younger men most willing to get separate data plans for alternative devices
Figure 71: Attitudes toward mobile network plans – Device dedicated data plans, by gender and age, January 2020
T-Mobile consumers looking forward to the impact of 5G
Figure 72: Attitudes toward mobile network plans – 5G and devices, by mobile network provider, January 2020
CONSUMER SEGMENTATION – ATTITUDES TOWARD MOBILE NETWORK PLANS
Figure 73: Mobile network subscriber segments, January 2020
5G Acolytes (27%)
Characteristics
Figure 74: Profile of 5G Acolytes, January 2020
Figure 75: Attitudes toward mobile network plans, by consumer segments, January 2020
Opportunities
Demanding Subscribers (29%)
Characteristics
Figure 76: Profile of Demanding Subscribers, January 2020
Figure 77: Overall satisfaction with mobile network service, by consumer segments, January 2020
Opportunities
Figure 78: Type of network plan, by consumer segments, January 2020
Late Adopters (25%)
Characteristics
Figure 79: Profile of Late Adopters, January 2020
Opportunities
Figure 80: Triggers to changing mobile network plans, by consumer segments, January 2020
5G Considerers (19%)
Characteristics
Figure 81: Profile of 5G Considerers, January 2020
Opportunities
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE MARKET
Figure 82: Total US sales and forecast of mobile network spending, at inflation-adjusted prices, 2014-24
APPENDIX – KEY DRIVER ANALYSIS
Interpretation of results
Figure 83: Level of satisfaction with mobile service providers – Key driver output, January 2020
Figure 84: Level of satisfaction with AT&T – Key driver output, January 2020
Figure 85: Level of satisfaction with Verizon – Key driver output, January 2020
Figure 86: Level of satisfaction with T-Mobile – Key driver output, January 2020
Figure 87: Level of satisfaction with Sprint – Key driver output, January 2020
Figure 88: Level of satisfaction with Other mobile service providers – Key driver output, January 2020
TURF methodology