|
|
US Wireless Data Plans Diverge: Share Plans Vs. Unlimited
Published on:
According to Fitch Ratings' latest telecom special report released today, both Verizon Wireless and AT&T Wireless have adopted relatively similar premium-priced data share plans reflecting their leading market positions.
While the new share data plans offer greater flexibility, consumers pay for increased data consumption which should drive greater revenues particularly as consumers uptake higher speed 4G LTE data services. Early industry evidence suggests that consumers materially increase their data consumption when upgrading to LTE devices.
Fitch believes the new data share plans could also result in even stickier customers for the majority of their subscriber base, as consumers attach more devices to these plans thus creating further barriers to churn. Postpaid churn rates for the industry have declined since 2009 driven by increased smartphone penetration levels.
Unlimited plans remain a key differentiator for some operators that are willing to embrace the simplicity of the offering to subscribers, despite the risk of network quality issues and elevated capital requirements. Fitch believes the willingness of operators to offer unlimited data plans is a strong reflection of competitive weakness. Whether companies can continue to offer unlimited plans in the longer-term as consumers significantly increase data usage remains a question.
The report can be downloaded from here (free registration required).
Tags: [verizon wireless] [at&t ] [USA]
|
| |
|
| |
|
| |
|
| |