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Last updated: 01 Jul, 2015  

US Wireless Market to Add 100 Million Subscribers by 2020

PR Newswire | 30 Jun, 2015
BOSTON: The US wireless market has entered into a new phase, evolving from voice to text to data and now to constant connectivity and what you do with it-according to the Strategy Analytics Wireless Operator Strategies (WOS) service report, "US Wireless Outlook: Can T-Mobile and Sprint Disrupt AT&T and Verizon Wireless?". With fewer new subscribers to sign up for wireless service for the first time, carriers have focused on transitioning consumers to smartphones, 4G LTE and monetizing their data use. Now carriers are focusing on adding value and content as they jockey for position.

Click here for the reports: "US Wireless Outlook: Can T-Mobile and Sprint Disrupt AT&T and Verizon Wireless?"  http://bit.ly/1duI6Qu

"US Wireless Market Outlook 2015-2020" http://bit.ly/1GKbXMc

Key findings from the reports:

    While growth has slowed, nearly 100 million wireless connections (including consumer electronics connections but excluding M2M) will be added through 2020, reaching a 128% penetration rate (of the US population).
    Mobile service revenue will grow 0.2% to reach US$197 billion in 2020, up slightly from $195 billion in 2015, spurred by a 5.7% growth in prepaid service revenue and 3.3% growth in data revenues.
    Verizon Wireless and AT&T are diversifying their revenue streams but will remain strong leaders, even as challengers T-Mobile USA and Sprint gain ground.
    No major shifts are anticipated in market share among the top 4 carriers, as T-Mobile has already surpassed Sprint in terms of total subscribers by mid-2015. The wholesale/MVNO/reseller market will gain a slightly higher percent of net adds over the next couple years.

Quotes:

Susan Welsh de Grimaldo, Director, Wireless Operator Strategies said: "As the US market focuses on the next stage of its evolution--from voice to text to data and now to constant connectivity and what you do with it—competition for market share and retention of subscribers takes center stage. Neck and neck numbers 3 and 4—challenger T-Mobile USA with its pro-consumer Un-carrier strategy and straggler Sprint that has shown great strides in network performance—are focused on network efforts to reach LTE network parity with the top 2 and market offers aimed to grow share, yet need to also address higher churn levels and margins."

Phil Kendall, Executive Director, Wireless Operator Strategies, commented: "The top 2 carriers—Verizon Wireless and AT&T—share strategies as "defenders" of market leadership to find growth by diversifying revenue base, building platforms, engaging the broader ecosystem, and developing multiscreen video offerings. Yet there is perhaps more divergence in their strategies now than in recent years. Other players add to the dynamic market place, with Google now entered on to the scene as an MVNO and Dish having amassed more spectrum but not revealed strategy. MVNOs have been on an upswing, with Wi-Fi first and target segment approaches."

About Strategy Analytics

Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success. www.StrategyAnalytics.com

US Contact: Susan Welsh de Grimaldo, +1 617 614 0724, swelshdegrimaldo@strategyanalytics.com

European Contact: Phil Kendall, +44 1908 423620, pkendall@strategyanalytics.com

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