The wireless industry is in a state of flux. AT&T and Verizon have dominated the carrier market over the past seven years while T-Mobile and Sprint have struggled to gain subscribers. Then in 2013, T-Mobile tweaked its strategy to turn around its business.
This move, along with slowing smartphone adoption and other forces in the mobile industry, killed the two-year contract and initiated an ongoing price war between carriers. The movement away from the contract model is not only changing the way carriers operate, it’s affecting the myriad of industries that rely on carriers’ services.
In a new report from BI Intelligence, we examine how the wireless industry has fundamentally changed since carriers began aggressively responding to the launch of T-Mobile’s “Un-Carrier” movement. We also look at the factors underpinning changes in the broader wireless industry and the challenges carriers face in 2016 and beyond, including the upcoming spectrum auction and the deployment of new wireless technologies.
Here are some key takeaways from the report:
- Consumers are actually becoming more loyal to their current wireless operator even as competition between the carriers intensifies.
- The wireless carriers are not only battling over device financing, they’re also trying to woo consumers through attractive data packages.
- Intensified competition between carriers has lengthened the smartphone replacement cycle, posing a challenge for mobile software developers and handset makers.
- With phone subscriber growth stagnating, carriers will look to alternative sources of revenue, including connected cars, tablets, and IoT devices, to drive growth.
- The upcoming spectrum auction, the latest ruling on net neutrality, and new technology, will change the face of the broader wireless industry in next few years.
In full, the report:
- Examines the impact of T-Mobile’s Un-Carrier movement on the wireless industry.
- Forecasts how the death of the two-year contract will impact the broader mobile industry.
- Identifies how carriers are helping facilitate the growth of mobile video consumption.
- Explains the changing nature of subscriptions and the growing importance of connected devices.
- Discusses what changes and challenges the wireless industry will face over the next five years.
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