Mobile Operators Focusing on Data to Win Customers
Mobile service market competition is concentrated on mobile data. Mobile operators in the U.S. are being aggressive in marketing mobile data plans and services to existing customers and customers from competing operators.
Verizon has simplified its data plan tiers using terms familiar to consumers, such as “S,” “M,” “L,” and “XL,” to describe different data tiers and educate customers on matching their data needs with the operator’s offers.
AT&T not only re-introduced its unlimited data plans, but also tied this offer with its DIRECTV video service. Its cross-sell strategy also includes a planned OTT video service based off DIRECTV content later this year.
T-Mobile, now the 3rd largest operator in the U.S., is still aggressively marketing its services as “Uncarrier” initiatives. It recently added its BingeOn service to allow its data plan subscribers of 3GB and higher to enjoy DVD-quality streaming videos from more than 15 online video service providers on its mobile network without counting such data usage into their monthly quota.
Sprint, now the fourth largest, is more aggressive in price competition. A recent Sprint ad campaign promised subscribers switching to its service that they can enjoy 50% reduction in monthly mobile phone bill. Sprint’s newest ad campaign is touting that their network reliability is within 1% of Verizon’s network reliability for a fraction of the price.
Executing a successful mobile data-focused product and marketing strategy is critically important to winning the hearts and wallets of mobile subscribers. For more information on how consumers perceive mobile data plans, see the 360 View Update Mobile Data Consumption and Preferences.
David Mitchel is part of the Consumer Analytics research team. He studies market and consumer trends in a number of areas, including Access & Entertainment, Connected CE, Energy Management, Connected Home Systems, Digital Media, Digital Health, and Mobile Devices.
Prior to working at Parks Associates, David spent 5 years working in a variety of marketing roles, gaining experience in a variety of industries. He earned a BA in Communication from the University of Arizona and an MBA from Thunderbird School of Global Management.