2024
9
US Mobile Network Providers Market Report 2024
2024-07-11T13:02:45+01:00
REPD79A334A_A8E3_4788_9518_08799FEE1447
3695
174553
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Report
en_GB
A saturated and mature mobile network market has homogenized the product and the messaging; leading to a situation where the goal is hitting the right person at the right time…

US Mobile Network Providers Market Report 2024

£ 3,695 (Excl.Tax)

Report Summary

Covering the US mobile network market and consumers, this report provides data-backed analysis to enable strategic, insight-based decisions. Inform your mobile network strategy now.

Core Areas Analyzed

  • Review of the mobile network market, including market size.
  • Consumer satisfaction with billing, speeds, coverage, and more.
  • Triggers/reasons for consumers to switch providers.
  • Consumer preferences in terms of plans, speed, data, etc.
  • Tenure/length of time consumers spend with providers.

US Mobile Network Market Overview

A saturated and mature mobile network market has homogenized the product and the messaging, leading to a situation where the goal is hitting the right person at the right time with the right message.

Functionality is changing, prompting excitement

With Apple’s upcoming in-phone AI functionality, the market will get much-needed innovation to boost excitement and sales. Mobile network providers need to start planning on meeting future data demands stemming from an increase in AI usage – and how much more consumers will be willing to pay for it.

Long-term customers are a key area for improvement

Overall satisfaction is high, but not equally among factors – price, roaming/global services, and customer perks are areas for improvement. Long-term consumers are especially frustrated with the lack of loyalty rewards. The share of long-term customers is dropping, meaning providers must focus just as much on promoting rewards to their users as it does on securing them.

Why do consumers switch mobile providers?

Price remains the top reason to switch, but for consumers aged 18-34, new customer incentives, change in circumstances, and direct messaging from providers weigh just as heavily. These digital natives are more apt to view their mobile service as a holistic package – not talk/text/data and add-ons.

Expert Analysis

Industry expert Jenni Nelson delivers in-depth insights with this report.

With more incentives to switch than stay, consumers sticking with the same provider for five or more years is on the decline. Meanwhile, providers find it hard to stand out in a saturated market.

Jenni Nelson - Media and Technology Analyst
Jenni Nelson
Consumer Insights Analyst, Tech, Media & Entertainment

Table of Contents

  1. Executive Summary

    • What you need to know
    • Consumer trends: key takeaways
    • Near saturation, and incremental upgrades in smartphones means modest gains for mobile network providers
    • Opportunities
  2. Consumer Insights

    • Consumer fast facts
    • Plan types
    • Prepaid remains less popular, but is gaining share
    • Graph 1: type of smartphone plan, 2020-24
    • Prepaid consumers need for live service impacts purchase location
    • Younger consumers are a primary target for prepaid plans
    • Graph 2: primary smartphone plan, by age, 2024
    • AT&T leads prepaid plans, with T-Mobile and Verizon close behind
    • Graph 3: primary prepaid mobile network provider, 2024
    • Men 18-34 are driving much of AT&T’s prepaid usage
    • Graph 4: AT&T as primary prepaid mobile network provider, by age and gender, 2024
    • Postpaid users wary of smaller, alternative providers
    • Graph 5: primary postpaid mobile network provider, 2024
    • Single- and multi-line plans
    • Single line plans return to pre-pandemic levels
    • Graph 6: primary smartphone plan, single or multi-line, 2020-2024
    • Verizon dominates in multi-line plans, but losing out with families
    • Graph 7: primary smartphone plan, single or multi-line, by provider, 2024
    • Women more apt to see value in multi-line plans
    • Graph 8: primary smartphone plan, single or multi-line, by gender, 2024
    • Data plans
    • Consumers would rather pay more upfront to avoid extra charges
    • Graph 9: primary smartphone data plan, 2020-24
    • Consumers look to “other” providers and plans for savings
    • Graph 10: primary smartphone data plans, by provider, 2024
    • Younger men appear to be moving away from unlimited data
    • Graph 11: have an unlimited premium/high-speed data, by age and gender, 2024
    • Provider tenure
    • Reward customer loyalty to slow churn
    • Graph 12: length of time with current mobile network provider, trended, 2020-24
    • Verizon has the lock on keeping their customers the longest
    • Graph 13: length of time with current mobile network provider, by provider, 2024
    • Older generations stick with their mobile provider longer
    • Graph 14: length of time with current mobile network provider, by gender and age, 2024
    • Average monthly cost
    • Verizon users pay the most, but are less satisfied with billing
    • Graph 15: average monthly cost of primary phone plan, by provider, 2024
    • Women pay more for mobile service
    • Graph 16: average monthly cost of primary phone plan, by gender and age, 2024
    • Perception is reality when it comes to price
    • Graph 17: select mobile network provider attitudes, by financial status, 2024
    • Triggers to switch providers
    • New customer incentives narrow in on price as a trigger to switch
    • Graph 18: triggers to switch mobile network provider, 2023-24
    • Younger consumers have a more holistic approach to their mobile service
    • Graph 19: triggers to switch mobile network provider, by age, 2024
    • Younger consumers have a more holistic approach to their mobile service
    • Triggers to switch by provider
    • Graph 20: triggers to switch mobile network provider, by provider, 2024
    • T-Mobile and “other” providers compete on price, while AT&T capitalizes on younger consumers and Verizon doesn’t do much
    • Satisfaction with mobile network providers
    • Overall satisfaction
    • Consumers remain satisfied with their mobile service
    • Graph 21: overall satisfaction with primary mobile network service provider, 2020-24
    • Price is just one factor driving overall satisfaction for men 18-54
    • Graph 22: overall satisfaction with primary mobile network service provider, by age and gender, 2024
    • Satisfaction is high, but must be maintained
    • Satisfaction with data speeds, network reliability and price
    • Will premium plans be necessary for future AI-driven data demands?
    • Graph 23: select mobile network factors (% any satisfied), 2024
    • Approach older consumers with care when marketing plans designed for them
    • Graph 24: select mobile network factors (% any satisfied), by provider, 2024
    • Good, fast, and cheap – pick two
    • Graph 25: select mobile network factors (% any satisfied), by plan type, 2024
    • Satisfaction with coverage and roaming/global services
    • Meeting consumer demand for coverage is an uphill battle
    • Graph 26: select mobile network factors (% any satisfied), by provider, 2024
    • Roaming and global services are important for solo male travelers
    • Graph 27: satisfaction with roaming/global service (% any satisfied), by age and gender, 2024
    • Better coverage and roaming could be another selling point for 5G
    • Graph 28: select mobile network factors (% any satisfied), by 5G status, 2024
    • Satisfaction with data plans and network security
    • AT&T brands network security, giving it an edge
    • Graph 29: select mobile network factors (% any satisfied), by provider, 2024
    • Satisfaction with billing
    • Verizon consumers struggle the most with billing
    • Graph 30: select mobile network factors (% any satisfied), by provider, 2024
    • Consumers under 55 demand flexibility, and providers deliver
    • Graph 31: billing flexibility as a mobile network factors (% any satisfied), by age, 2024
    • Satisfaction with consumer service and rewards
    • Room for improvement with customer service and rewards
    • Graph 32: satisfaction with select mobile network factors (% any satisfied), by provider, 2024
    • T-Mobile extensive perks may need an awareness campaign
    • Make freebies more appealing for older consumers, and make sure they are aware of them to begin with
    • Graph 33: freebies/loyalty reward as a mobile network factors (% any satisfied), by age, 2024
    • The most loyal consumers don’t feel rewarded
    • Graph 34: select mobile network factors (% any satisfied), by tenure, 2024
  3. Competitive Strategies

    • Innovation
    • 5G innovation extends well beyond smartphones
    • AT&T first to move on open RAN
    • Marketing and advertising
    • AT&T uses repetition to emphasize the best deal on the latest phones…
    • AT&T knows the best audience for each of it’s plans
    • T-Mobile leverages iPhone 15 to incentive new customers
    • T-Mobile breaks consumers out of lock up
    • Verizon employs the same tactics as the competition
    • Verizon targets Hispanics through music and sports
    • Verizon targets Hispanics through music and sports (cont’d)
  4. The Market

    • Market context
    • Market drivers
    • The US expanded by 1.3% in Q1 2024
    • Graph 35: quarterly real GDP growth, 2020-24
    • Consumer prices rose by 3.3% in May, down for the second consecutive month
    • Graph 36: headline CPI and shelter CPI, 2021-24
    • Consumer sentiment remains down, but is expected to rebound soon
    • Graph 37: consumer sentiment index, 2021-24
    • Market size and forecast
    • Mintel anticipates the market to reach $321.6 billion in 2028
    • Revenue and forecast of total wireless services of mobile network providers
    • Market segmentation
    • Revenue and forecast of cellular telephone services
    • Revenue and forecast of cellular phone services
    • Revenue and forecast of equipment
  5. Appendix

    • Market definition
    • Consumer research questions
    • Consumer research methodology
    • Generations
    • Abbreviations and terms
    • Mobile network providers included in “Other”
    • Financial status descriptions
    • Forecasts
    • Forecast fan chart

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