Parks Points

The mobile service market is experiencing a temporary calm before the storm, and the fact that one-third of mobile customers have not made a change to their mobile service plan, mobile device, or mobile service provider for more than two years is representative of that fact.

Twenty percent have made a change to their mobile device or service during the last 6 months. The introduction of two new Apple iPhone models in Fall 2017 will spur a new upgrade cycle, which may alter the balance of recent changes made, but may not spur tremendous changes in market shares of mobile operators, who are welcome to consumers making plan changes as long as customers do not leave them. For operators, each service change encounter can be an up-sell/cross-sell/service extension opportunity.

Currently, mobile service operators are experimenting with various new business models. AT&T has embarked on a mission to become a media and telecom company, whereas Verizon is pushing its advertising ambitions via trial and error. The potential merger between T-Mobile and Sprint would create a telecom giant that can compete with AT&T and Verizon both domestically and internationally. These activities point to an even more competitive mobile market in the next five years.