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Six Ways the Mobile Market Can Thrive

By Tony Kontzer on 2010-03-02


The mobile phone market is changing drastically. After years of rapid growth, potential new customers are scarce, so efforts have shifted to getting subscribers to upgrade to smart phones, and to selling more services and accessories; meanwhile, companies want to hang onto existing customers for dear life. The annual North American Wireless Industry Survey from PricewaterhouseCoopers shows numerous growth possibilities without adding new customers.
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1. Better Networks

U.S. wireless companies spent more than $160 per subscriber on their networks in 2009, a 30+% increase over 2008. Better networks mean more-and better-services.

2. Better Customers

U.S. wireless companies spent 50% more on customer retention in 2008 than they did in 2007. Focus on the most profitable customers is critical.

3. Better Plans

Use of prepaid minutes by U.S. subscribers increased more than 147% between 2006 and 2009. More pre-paid customers translates to substantially lower billing costs.

4. Better Devices

Smart phones make up 21% of mobile device sales, representing huge potential for upgrades, application sales, and data plans.

5. Better Revenue

Average monthly revenue for smart phone users is $74 versus average of $54 (not including pre-paid users). More smart phones equal more revenue.

6. Better Billing

The percentage of customers receiving paper invoices decreased from 81% in 2008 to 72% in 2009. This slashes costs, and reduces carriers' environmental footprints.

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