OTT video services emerge as focus for US mobile carrier strategies | Mobile | News | Rapid TV News
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Despite best efforts by the likes of Sprint, T-Mobile, Verizon and AT&T to gain new subscribers, only 14% of US mobile subscribers switched providers as the most recent change to their mobile service plan, says research from Parks Associates.

Parks Mobile 22Jan2018The Mobile Service Churn: Managing Consumer Expectations report revealed that only 39% of mobile subscribers have made a plan change in the past 12 months, typically either a plan upgrade or a new phone. In addition, a third of mobile customers have not made any changes in their mobile services for more than two years. The result is that post-paid carriers are starting to explore new value-added services such as bundled entertainment packages as new upsell options.

"Unlimited data offerings are no longer effective levers to attract customers from competitors," explained Parks Associates research analyst Kristen Hanich. "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. AT&T exempted DIRECTV from mobile data caps, so its subscribers get video benefits with their mobile services. AT&T is looking to offer a wireless-centric video service, and in response, T-Mobile and Verizon are moving to introduce their own over-the-top TV services this year."

Other key findings of the report were that new smartphone purchases account for more than half of all changes that customers make on their mobile service plans and that on average, US broadband households pay over $60 more per month for post-paid mobile service than they do for pre-paid service. Monthly expenditure for mobile service was found to be greatest among Sprint and Verizon subscribers.