The Smartphone market has plateaued; mobile carriers experiment to improve subscriber retention.

The US Smartphone market hit a saturation point in 2014 with adoption rates holding around 80% and purchase rates declining. US mobile carriers are aggressively iterating data plan offerings to differentiate their services and stay ahead of the competition. T-Mobile reintroduced unlimited data plans and Verizon unveiled a data carryover option.

As wireless carriers experiment with new service offerings in the search for new growth areas, they could emerge as a new threat to fixed broadband services. As of mid-year 2016, 10% of US broadband households are likely to cancel their broadband service over the next 12 months in favor of mobile data services. As data service offerings and upgrades reach a stalemate, mobile carriers will start to develop bundled packages that include entertainment services (e.g., Netfilx) along with data plans that offer zero-rated video streaming. Offering tablets as a potential “add-on” to the bundle could make the “cordless” life even more appealing, which would capture ARPU currently going towards pay-TV and broadband service providers.

Source: ISE Magazine, January 2017, Volume 35, Issue 1