Carriers shift marketing focus to their own customers:
The operator lost 178,000 voice customers in the same quarter. In June, Verizon also started offering the best deals to all customers – basically the best phones for $0 a month. This is not just any June offer, but the offer is valid until July.
T-Mobile didn’t follow suit, but the operator is pushing for its more expensive Magenta Max plan, which is now very popular for some offerings. That’s why all three providers are working hard to get customers to accept the next generation of unlimited plans and get more revenue from each customer.
With the acquisition of Sprint, T-Mobile has a much larger customer base to defend. Comcast and Charter maybe cable companies, but ironically their Xfinity Mobile and Spectrum Mobile units can attract aggressive competitors in marketing.
Longer Equipment Payment Plans (EIPs)
AT&T replaced its 30-month EIP with a 36-month EIP in June. Not too long ago, AT&T customers could choose between a 24 or 30-month subscription, so the development is clearly AT&T.
Verizon uses a 24-month EIP for all phones, but there is a 30-month EIP option for phones that cost $800 or more. I wouldn’t be surprised if Verizon renews its EIP, as AT&T did. T-Mobile operates a 24-month EIP and the 18-month lease used by many Sprint customers does not last long.
The longer update cycles are partly due to the reduced distinction between phone models. The best smartphones are fast black glass plates, good screens, good cameras, and improved charging options.
Do you remember the days of the $199 iPhones and two-year contracts? The vectors move in this direction. Calling an OOB a contract is an abomination, but the truth is that customers are employees. Customers who leave the operator before the end of the EIP period usually have a ‘free’ debt with the operator. It’s actually a contract.
Now AT&T and Verizon are facing the initial cost of shipping a flagship iPhone or Galaxy device for $0 a month. AT&T requires customers to report 36 months of unlimited service on the dotted line. A customer who signs up today will still pay for an unlimited subscription in July 2024.’ A Verizon customer taking advantage of the offer will pay for an unlimited premium plan in 2024 or July 2023. In essence, both providers calculated that the highest and lowest service revenues outweigh the highest government subsidies.
My competition nirvana/marketing? Not quite
By mid-2021, the market will be less competitive, with fewer users than ever before. Is this the new normal? No, that’s not it.
In April, Comcast announced unlimited family plans. Suddenly, a family of four can get unlimited data for $120 a month, up from $160 the previous month. This is a big discount. Spectrum Mobile is considering similar changes, Light Reading reported in May. And it looks like Cox is planning its own wireless launch, as reported by FierceWireless in 2020. The cable industry has posted several wireless email announcements.
Cable companies do everything they can to compete. Hundreds of stores have been built, while the number of local carriers is declining. Xfinity Mobile and Spectrum Mobile spend a lot on advertising. New efforts are underway, such as the recent release of the Apple Watch from Spectrum Mobile.
Not to mention that Dish Network is committed to building a network that will cover at least 70% of the US population by June 2023. I don’t think Dish will have a big impact, but it looks like a fourth nationwide network is in the works. . are gone.