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Multi-Device Use Key to 90 Million Growth in US Wireless Connections by 2022, says Strategy Analytics

Strategy Analytics.

News provided by

Strategy Analytics

15 Sep, 2016, 15:58 BST

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But Price Competition from T-Mobile, MVNOs and Cable will Result in Meagre 2% Service Revenue Growth

BOSTON, Sept. 15, 2016 /PRNewswire/ -- Strategy Analytics—The US Wireless Carrier market continues to ramp up competition with a continued focus on network speeds and adding more value for consumers, according to the Strategy Analytics Wireless Operator Strategies (WOS) service report, "US Wireless Carrier Outlook." While growth has slowed in the maturing US wireless market, Strategy Analytics forecasts show the outlook is not bleak: US wireless subscriptions will add 15 to 16 million net adds per year through 2022, while gross adds will grow each year, from 113 million in 2016 to 139 million in 2022—providing plenty of room for competition.

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Click here for the report: http://bit.ly/SAUSCarriers

Key findings from the report:

  • By 2017, wireless service revenue will be 5% below its 2014 peak as price competition intensifies and the growth in equipment instalment plans, leases, and "bring your own devices" (BYOD) devices dominate postpaid connection volumes.
  • T-Mobile will capture 18% of retail service revenue by 2022, up from 14% in 2016 as it continues to disrupt the market with its Un-carrier strategy, currently seeing it dominate smartphone net adds and move ahead of AT&T in postpaid gross adds.
  • Just under 18% of subscriptions (excluding connected devices) are still on feature phones today offering strong opportunities for device upgrades to help mitigate against falling ARPUs.
  • The 5G roadmap creates opportunity as well as potential for new disruptors, and the major US carriers as well as cable companies are hard at work on developing and assessing technologies and strategies to lead in 5G. 5G will account for 6% of connections by 2022.

Quotes:

Susan Welsh de Grimaldo, Director, Wireless Operator Strategies, said: "US carriers, and MVNOs are hard at work adding value to consumers and competing on networks, pricing, and value propositions. 5G provides an exciting opportunity for both existing and new players to disrupt and push US wireless growth, but more work is needed to fully develop business cases to drive revenue streams that will support the investments needed. "

Phil Kendall, Executive Director, Wireless Operator Strategies, commented: "The growth in prepaid plans and instalment or lease options on handsets have contributed to a 4% fall in service revenue over the last two years, with connected devices the main source of future revenue growth for US carriers. Managing multi-device user needs will be a key battleground for carrier success in wireless, with phones accounting for only 70% of connections by 2022."

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

Related Links

http://www.strategyanalytics.com

SOURCE Strategy Analytics

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