Parks Associates: Mobile Carrier Strategies Evolving to Focus on Value-added and OTT Video Services

Research firm finds the highest net promoter scores (NPS) are among prepaid services and low ARPU subscribers

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Jan 22, 2018, 08:25 ET

DALLAS, Jan. 22, 2018 /PRNewswire/ -- New research from Parks Associates finds only 14% of U.S. mobile subscribers switched providers as the most recent change to their mobile service plan. Mobile Service Churn: Managing Consumer Expectations reports that, despite intense efforts by Sprint, T-Mobile, Verizon, and AT&T to lure new subscribers, only 39% of mobile subscribers have made a plan change in the past 12 months, typically either a plan upgrade or a new phone. One-third of mobile customers have not made any changes in their mobile services for more than two years.

"Unlimited data offerings are no longer effective levers to attract customers from competitors," said Kristen Hanich, Research Analyst, Parks Associates. "The challenge now is to find ways to increase ARPU without negatively impacting customer satisfaction. Currently, with few exceptions, the top spenders give their mobile carriers a low NPS, ten points lower on average than the lowest spenders. Carriers are searching for new ways to upsell without alienating their subscriber base."

Parks Associates finds prepaid services score high NPS, indicating consumers respond positively to simplified billing. Currently postpaid carriers are starting to explore new value-added services such as bundled entertainment packages as new upsell options.

"AT&T exempted DIRECTV from mobile data caps, so its subscribers get video benefits with their mobile services," Hanich said. "AT&T is looking to offer a wireless-centric video service offering, and in response, T-Mobile and Verizon are moving to introduce their own OTT TV services this year."

Mobile Service Churn: Managing Consumer Expectations analyzes successful service provider strategies in the competitive mobile industry and explores reasons behind consumers' decision to change operators or stay with their existing one. It also explores consumer interest in using alternative mobile services. Additional findings include:

New smartphone purchases account for more than 50% of all changes that customers make on their mobile service plans.
On average, U.S. broadband households pay over $60 more per month for postpaid mobile service than they do for prepaid service.
Monthly expenditure for mobile service is greatest among Sprint and Verizon subscribers.

For more information about Parks Associates' research, contact [email protected]. To schedule an interview with an analyst or to request specific data, contact Julia Homier at [email protected], 972-996-0214.

About Parks Associates

Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes digital media and platforms, entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, support services, consumer apps, advanced advertising, consumer electronics, energy management, and home control systems and security.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Connected Health Summit: Engaging Consumers, and Smart Energy Summit: Engaging the Consumer. http://www.parksassociates.com

Julia Homier
Parks Associates
972.996.0214
[email protected]

SOURCE Parks Associates