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Mobile Network Providers - US - May 2018

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Overview
The issues
No easy way out of mass advertising across traditional and digital
Figure 1: Role in service selection, March 2018
Prepaid places lid on pricing
Figure 2: Impression of prepaid services, March 2018
Churn rates dauntingly low
Figure 3: Postpaid churn rates, most recently reported financial quarter, April 2018
The opportunities
Additional services, devices, boosting revenue
Figure 4: Features subscribers would like to add, March 2018
Basic elements of service helping to create loyalty
Figure 5: Perception of provider among subscribers uninterested in changing carrier, March 2018
Promotions propel acquisitions
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
Sales survive difficult conditions
No growth in service sales 2015-17
Vast majority participate in selection
MARKET SIZE
Adverse conditions stall sales 2014-17
Figure 7: Total US sales and forecast of market, at current prices, 2012-18
MARKET BREAKDOWN
Service sales stall
Equipment revenue sees substantial growth
Figure 8: Wireless service sales vs equipment sales, 2015-17
MARKET PERSPECTIVE
Everyone is involved
Figure 9: Role in service selection, March 2018
No taint on prepaid
Figure 10: Impression of prepaid and smaller carriers, March 2018
MARKET FACTORS 
Lower prices far and away leading reason to change carrier
Figure 11: Objectives in changing carrier, by carrier (AT&T/Verizon), March 2018
Figure 12: Objectives in changing carrier, by carrier (other brands), March 2018
Growth via acquisitions tough
Figure 13: Postpaid churn rates for most recently reported financial quarter, April 2018
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Four networks carry 88% of subscribers
Vanishing brand distinctions advantageous to smaller services
Merger, 5G create room for new second tier
WHAT’S WORKING?
Dominance tied to handsets
Figure 14: Subscriptions by provider (with subsidiaries included in parent share), March 2018
Campaigns lead perception
Figure 15: Perception of Verizon and AT&T among subscribers uninterested in changing carriers (AT&T/Verizon), March 2018
Figure 16: Perception of provider among subscribers uninterested in changing carriers, by carrier, excluding AT&T/Verizon, March 2018
WHAT’S STRUGGLING?
Current strugglers likely to see gains from merger
Figure 17: Subscriptions by brand, March 2018
WHAT’S NEXT?
5G coming to a hotspot near you
Competition with home internet service providers
T-Mobile and Sprint to merge
Additional devices retain potential
Figure 18: Features subscribers would like to add, March 2018
THE CONSUMER – WHAT YOU NEED TO KNOW 
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
Personal experience tops marketing
Figure 19: Influences on carrier selection, March 2018
Duopoly reliant on personal experience
Figure 20: Influences on carrier selection, by carrier (AT&T/Verizon), March 2018
Figure 21: Influences on carrier selection, by carrier (other carriers), March 2018
Urbanites more likely to have considered marketing
Figure 22: Influences on carrier selection, by area of residence, March 2018
Marketing carries less weight among highest-income group
Figure 23: Influences on carrier selection, by household income, March 2018
HOW LOYAL SUBSCRIBERS PERCEIVE THEIR CARRIER
Basics fulfilled for those uninterested in change
Figure 24: Perception of provider among subscribers uninterested in changing carrier, March 2018
Hispanics focus on price, customer service
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
Figure 26: Perception of provider among subscribers uninterested in changing carriers, by area of location, March 2018
Older ages value customer service
Figure 27: Perception of provider among subscribers uninterested in changing carriers, by gender and age, March 2018
INTEREST IN CHANGING CARRIER
Nearly half of subscribers open to change
Figure 28: Interest in changing carriers and circumstances under which changing would be motivated, March 2018
Interest in change lower at smaller services
Figure 29: Interest in changing carriers, by current carrier, March 2018
Top target by income: $75K-99.9K
Figure 30: Interest in changing carriers, by household income, March 2018
Older ages staying put
Figure 31: Interest in changing carriers, by age, March 2018
Urbanites more likely to move
Figure 32: Interest in changing carriers, by area of residence, March 2018
Improved rewards can aid acquisitions
Figure 33: Interest in changing service, CHAID tree output, March 2018
REASONS TO SWITCH
Price, data, and speed
Figure 34: Objectives in changing carrier, March 2018
Younger ages less concerned with price
Figure 35: Objectives in changing carrier, by age, March 2018
Lower-income groups less concerned with price
Figure 36: Objectives in changing carrier, by household income, March 2018
Dads motivated by speed, phones, features
Figure 37: Objectives in changing carrier, by parental status, March 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
CHAID analysis methodology
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE MARKET 
Figure 38: Total US sales and forecast of market, at inflation-adjusted prices, 2012-18
APPENDIX – CONSUMER
CHAID tree output
Figure 39: Interest in changing service, CHAID tree output, March 2018

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