2011 State of Wireless Industry

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  • 1. State of the Wireless Industry Panel Moderator Anne Weiler, iQmetrix Panelists Scott Aronstein, Connectivity Source Seamus McAteer, ITG Akbar Mohamed, Prime Communications Eric Stachowski, iQmetrix
  • 2. 7th Annual iQmetrix State of Wireless Industry Survey 158 Respondents
  • 3. State of Wireless Industry Highlights! Optimistic about industry in general but less optimistic about own business !  % that plan to expand by 50% or greater has decreased !  Big box & carrier consolidation are threats to independent channel
  • 4. State of Wireless Industry Highlights! Carriers are still biggest competition! Uncertainty about pending AT&T acquisition of T-Mobile as increasing threat! Optimism driven by growth of diverse devices and increased data traffic because of new uses
  • 5. Most optimisticIndustry Overall •  21-51 locations •  Verizon dealers •  Canadian dealersWhere do you see the Wireless Industry in 5 Years? Most pessimistic •  3-9 locations70% •  51+ locations60% •  Sprint dealers50%40%30% Industry will slow down20% Stay the same10% Industry will grow 0% 2008 2009 2010 2011Slightly more optimistic than 2011, in every segment at least 50% respondents predict growth of industry
  • 6. Industry Overall Expectation of larger increases in saw s s market the United US wirele in States t decline 8.2 percen 4 percent through 2014 . 20 09 and a 2 . compared advan ce in 2010 with 2010. Beginning in 2011, growth in average revenue per subscriber (ARPU) will become the principal driver of wireless spending for the first time. Source: TIA’s 2011 ICT Market Review & Forecast
  • 7. Industry: Carriers! Do you think carrier consolidation will have a positive or negative effect on the industry?! Almost 40% predict positive outcome
  • 8. Industry: Carriers! 2/3 of Sprint respondents see negative impact! “Less consumer choice”! “More threat to my business”
  • 9. Industry: Phones % of Expected Smartphone Sales 201245%40%35% 201030% 201125%20%15%10%5%0% < 40% 40% - 60% 60% - 75% > 75% > 90% Sprint, AT&T, and dealers >10 locations see biggest shift to Smartphones
  • 10. Industry: Phones! July 2011 smartphone audience reached 82.2 M, 35% of US market (comScore) !   October 2012 before smartphone sales overtake feature phone sales! Google data shows 31% penetration (OurMobilePlanet) !   70% are first time buyers! Sales of smartphones expected to exceed PCs in 2012 (Morgan Stanley)! Smartphone ownership expected to reach 43% of population by 2012
  • 11. Consumers Industry: Innovation Who do you see as the source of innovation? ®
  • 12. >80% of 21-50 locationsYour Business are planning to grow More Verizon dealers plan to grow than Sprint, T-Mobile, or AT&TWhere do you see your wireless business in 5 years? T-Mobile dealers expect to45% say the same or go out of business40%35% It will have increased to more than30% double its current size25% It will have increased up to double its current size20% It will remain the same size15% It will be smaller10% 5% I will have sold it or have gone out of business 0% 2009 2010 2011
  • 13. 10 and above locationYour Business: dealers expanded most in 2011Expansion 2011 Canadian dealers most stableHow have you expanded in the past year? 40% of T-Mobile respondents downsized in35% 2011, 35% of Other (US Cellular, Cricket), 31% of30% Sprint25% Downsize20% Stay the same15% Expanded by up to 10%10% Expanded by up to 25%5% Expanded by up to 50%0% Expanded by more than 50% 2009 2010 2011
  • 14. Your Business: Expansion 2012What are your plans for expansion in the next year?45%40%35% Plans for downsizing30% No plans for expansion25% Expand by more than 50%20% Expand by up to 50%15% Expand by up to 25%10% Expand by up to 10%5%0% 2006 2007 2008 2009 2010 2011
  • 15. Verizon dealers see significantlyYour Business: lower challenge managing carrier than rest of US & Canadian dealersChallenges 1-2 locations face greater economic uncertainty 21-50 locations have most difficult time managing carrier relationshipsWhat is the greatest challenge you face in the upcoming year? 10-20 locations see greater threat from big box35%30%25%20%15%10% 20105% 20110% Continued Carrier Relationship Increased Big Box Increased Product/ Economic Management Competition Service Complexity Uncertainty
  • 16. Your Business: Smaller businesses are seeing a significantlyCompetition greater level of competitionWhat is the level of competition in your Verizon & AT&T, and “Big 3” Canadian dealers seemarketplace compared to last year? more competition than 201060%50%40%30% Far more competitive Slightly more competitive20% Same10% Slightly less competitive Far less competitive 0% 2006 2007 2008 2009 2010 2011
  • 17. Your Business: Competition Who do you feel is your biggest competitor?Response 2005 2006 2007 2008 2009 2010 2011Your Carrier 1 1 1 1 1 1 1Other Carriers 2 3 2 2 3 3 4Big Box Retailers 3 2 3 3 2 2 2Other Independent Retailers 4 4 4 4 4 4 5Online Competition - - - - - - 3
  • 18. Your Business: Investments71% of respondentsare planning toimprove the in-store experience inthe following ways:40% of respondentsare planning toexpand/improveB2B offerings.
  • 19. Your Business: InvestmentsDo you currently use or plan to use the following in your store?60%50% Mobile Payment40% Digital Signage30% Interactive Retail Location-Based Advertising20% Tablets POS on Mobile Devices10%0% % Currently Use % Plan to Use % Interested % Do Not Plan to Use
  • 20. 2011 State of Wireless Industry SurveyThank-you to all respondents andTwitter votersLooking forward to your responses in 2012 •  Respondents get survey results •  Additional questions include churn, value-added services, commissioning, and more detail on the topics reviewed today
  • 21. iQmetrix.com | 1.866.iQmetrix © 2011 iQmetrix. All right reserved. iQmetrix, the iQmetrix logo, RQ4 and other trademarks, service marks, anddesigns referenced in this material are the exclusive property of iQmetrix Software Development Corp. and/or its subsidiaries.