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Us Mobile Market: Is the growth over?


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Mobile US market at a glance, as seen by a non US resident.

Mobile subscribers growth is slowing down, but there are still large opportunities to catch. Mobile Carriers are rolling out 4G network in order to provide the best service to the customers, increasing data usage, loyalty and ARPU. Competition on services, such as Video, contents and Communication with OTT can provide further revenues. The Prepaid segment is the fastest growing, and catch attention of all the carriers. Carriers exploits all smartphone and tablet potential, waiting for an explosive growth of Internet of Things.

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Published in: Mobile
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Us Mobile Market: Is the growth over?

  1. US MOB ILE MAR KE T August2013 IS THE GR O W TH O V ER?
  2. 335million mobile subscribers 317million Source: elaboration Carriers investors 31 December 2013 - Difference is due to multi SIM owner, 3G/4G tablets and modems, and M2M internet of things US Demographics
  3. A traditional business model Carriers Network Supplier Distribution Brand People Service plans (Data, Min, SMS) Devices $$$ Revenues from plans/device Carrier reinvestment US market $200B Customers 335M
  4. Sprint lost subscribers because of the Nextel network shutdown T-Mobile boost subscribers in 2013 as result of merge with MetroPCS 110 Customers by Carrier (million) 103 4754 Source: elaboration Carriers investors 31 December 2013 - figure includes MVNO and M2M SIM Cards 4 Carriers provide nationwide service
  5. 4 Carriers control +95% of the market Source: ISTAT 2011, Source: AGCOM Quarterly Telecommunication Markets Observatory 31 December 2013 Market share by Carrier, Q4 2013 335M Source: elaboration Carriers investors 31 December 2013 customers 32% 17% 14% 34%
  6. Carrier Revenues continue to grow Total revenue +7% YoY, with T-Mobile +24% YoY 0 63 125 188 250 2011 2012 2013 2420 21 323230 817670 706763 ATT Verizon Sprint T-Mobile +5% +7% +0% +24% YoY Source: elaboration Carriers investors 31 December 2013
  7. Creating new mobile subscribers is becoming more and more difficult: carriers are stealing customers from one another Source: elaboration on Carriers investors 31 December 2013
  8. 4G ! LTE SERVICES & LTE PREPAY DEVICE but there are still opportunities to grow
  9. an important driver to increase ARPU 4G ! LTE SERVICES & LTE
  10. One of the most advanced LTE markets 50% US users on LTE plans 11.5MbpsAverage download speed on T-Mobile 83.2% Network coverage with Verizon Source: data from , in the picture:T-Mobile 4G coverage
  11. Carriers offering more services VOICE & MESSAGING DATA VIDEO SERVICES Better experience, better network, video services to increase data usage and ARPU FIXED BROADBAND INCREASE ARPU
  12. But only a part of the value is captured Carriers, competing with OTT, offering owned and 3rd parties services in order to capture more value in the chain CONTENT PORTALS CONNECTIVITY DEVICES DISTRIBUTION e-com Ads Software Network  Device Ads video denote core business over the top
  13. a new way to look at Prepaid Market PREPAY
  14. Cheaper option for price-sensitive target ! More flexibility Postpaid market saturated ! Subsidy reduction Growing popularity of Prepaid plans
  15. We can't keep doing big subsidies on phones ! Randall Stephenson AT&T Chairman & CEO Source: AT&T conference December 10, 2013
  16. Prepaid is the fastest growing segment Prepaid plans account now 17% of the Market with +30% YoY 0 68 135 203 270 2011 2012 2013 44 3432 222215212 Postpay Prepay +3% +30% Source: elaboration Carriers investors 31 December 2013
  17. We are going to redefine a stupid, broken, arrogant business ! John Legere T-Mobile US President & CEO Source:T-Mobile conference March 2013
  18. T-Mobile reshaping Prepaid Market Carrier offering plans without annual contract, with simple, pricing and optional device (“Un-Carrier”program, March 2013) Service Fee Prepaid / Postpaid Device Upfront + Installment Fee (24 mo) “Un-Carrier”way Upfront + Monthly Fee (24 mo) Industry norm POSTPAID PLAN DEVICE SUBSIDIZED CONTRACT TERM 24mo SERVICE PLAN AND DEVICE SEPARATED BRING / BUY / FINANCE YOUR DEVICE NO CONTRACT + * *
  19. DEVICE smartphone market still healthy… while waiting for Internet of Things
  20. 65% of customers own a Smartphone 87% of new phones are Smartphones Source: COMSCORE reports December 2013 US, eMarketer 140 Mln Smartphone sold in 2013 There is still market left for new and for upgrade (cycle 18-24 month)
  21. Source: Counterpoint market research, Q1 2014 Apple leader in the Market There is still market left for new and for upgrade (cycle 18-24 month) Apple Samsung Motorola LG HTC Other 42% iPhone market share
  22. Apple dominates in 3 Carriers over 4 SMP market share by Carrier, Q1 2014 Apple Samsung Other Source: Counterpoint market research, Q1 2014
  23. Family plans and shared data with cellular tablets and other devices show positive results but explosive growth takes time for the IoT ecosystem to build out and prices to go down Source: Chetan Sharma Consulting market research, Q3 2014
  24. Early Upgrade plans to reduce churn T-Mobile early upgrade plane JUMP!, followed by AT&T, Verizon and Sprint, drove incremental postpaid customers and reduced churn 1. Buy a phone and finance it through T-Mobile
 2. Enroll in JUMP! for $10/mo
 3. Trade in your eligible device at any time 4. Select a new device Source: elaboration Carriers investors 31 December 2013 T-Mobile upgrade program
  25. thanks designed by stefano catracchia