Can Cell Phone Providers Keep Up with an Ever-Changing Industry?
Cell phones are an ever-changing industry. With advancements in technology, every new phone needs to have newer and better features to be able to keep up with it’s competitors. Virtually every phone made today has touchscreen capabilities and high-res cameras. So, to keep the game moving forward, companies like Samsung have kept their competitors on their toes with water-resistant phones, larger screens that go all the way to the edge while keeping the same, clear resolution as those of its competitors. With constant advancement, it now seems like a requirement that users be able to constantly access the web from their phones, which means more data available for all. So how are cell phone providers like AT&T and Verizon Wireless keeping up with all the changes? The truth is in the data.
In 2016, CTIA conducted a study on wireless and data usage and found that 49% of US households are wireless-only. With 4+ wireless provider choices in the US, cost per MB has decreased 99% to keep up with competitors. But, data has also seen a significant growth since 2013, going from 3.2T MB to 9.6T MB per year with 61% of mobile traffic coming from videos. It is estimated that by 2020, 77% of mobile traffic will be from videos.
Due to the increase in need for data, companies like AT&T, Verizon Wireless, and T-Mobile have come out with “unlimited data” plans that allow users to stay connected constantly. The top competitors in the US are T-Mobile, Sprint, AT&T, and Verizon Wireless. Based on a study conducted by SimpleTexting on the top cell phone providers, most states use Verizon Wireless or AT&T as their providers, switching back and forth if a new deal arises. With Verizon Wireless being the dominant provider in most states, companies like AT&T have seen the most fluctuation in plans offered to their users. A decrease in price has popped up, drawing in more clients across the states. Now, AT&T has become one of the best providers for unlimited data plans for families.
But, just as cell phones evolve and advance, providers will evolve and advance with them to keep the competition going.