Verizon Wireless has fully one-third of its postpaid subscriber base on its Share Everything plans less than a year after launching the plans, according to Verizon Communications CFO Fran Shammo.
Cellular-capable tablets will generate a total of $20 billion for wireless operators in 2017, according to research firm Strategy Analytics, due in large part to operators' efforts to encourage subscribers to activate LTE connections on tablets through shared data plans.
T-Mobile USA is bringing its new "Simple Choice" no-contract plans to the B2B market, hoping that its "uncarrier" rebranding effort will also translate into more enterprise sales. The plans are priced from $50 per month to $70 per month and are essentially exactly the same as what T-Mobile offers on the consumer side.
According to a new survey of all of the major North American wireless carriers, smartphones remain incredibly popular among subscribers, who are consuming an average of 694 MB per month in postpaid data. At the same time, voice calling continues to decline from around 720 minutes per month among postpaid users in 2010 to 673 minutes last year. But perhaps the most interesting finding from the PwC survey is that wireless carriers are seeing a dramatic 60 percent slowdown in the growth of traffic on their wireless networks.
Verizon Wireless reported a record-high profit margin in the first quarter of 2013 as it continued to benefit from its Share Everything shared data plans, which were introduced last June. The carrier said that its average revenue per account grew steadily, as it has in the past several quarters. Verizon said that 30 percent of its retail postpaid customers are now on its shared data plans.
In the next few years, there will be the beginning of a price war in the family shared data plan market between U.S. carriers. To stay ahead, we are likely to see the carriers embrace truly flexible and affordable shared data plans in the U.S for smartphones, tablets and next-gen connected devices alike.
AT&T Mobility announced new pricing options for business users on its shared data plans, giving enterprise customers access to larger buckets of data. The action is a response to similar pricing moves for business users by Verizon Wireless, Sprint Nextel and T-Mobile USA.
AT&T Mobility believes that customers' shift toward its Mobile Share shared data plans and a new emphasis on services such as its Digital Life home automation offering will lead to lower churn and additional revenues, according to a senior AT&T executive.
Verizon Wireless expects subsidies for smartphones and other devices to fall over the next two to three years as competition intensifies among operating systems and devices move to being LTE-only, according to a senior Verizon executive.
Forward-looking service providers and OEMs recognize that they must adapt their business models to the emerging environment of M2M and connected, wearable devices to take advantage of future growth. Those that do not could be left behind.