A new survey from Wall Street research firm Macquarie Capital found that T-Mobile is poised to gain share among millennials due to the operator’s marketing strategies and pricing plans.
“T-Mobile still has a long runway for growth,” the analysts wrote in a report on the survey’s findings.
Interestingly, the survey found that fully 46% of respondents use Verizon as their current wireless carrier, followed by 22% who use T-Mobile. But those numbers indicate that T-Mobile has share to gain, according to the Macquarie report.
“We expect T-Mobile’s market share will continue to grow as it is poised to gain the bulk of industry net adds in ‘18+,” the authors wrote. “We note that price/value reign among consumers of all ages when choosing a wireless provider, to the benefit of the uncarrier.”
The Macquarie report was based on a survey of 100 respondents answering 10 questions.
The survey’s results are noteworthy considering millennials—generally those born in the 1980s, 1990s and early 2000s—are considered an important demographic in terms of their potential for purchasing goods and services as well as how their behavior might indicate future trends. “We expect the millennial consumer will dictate the future of telco/cable,” the analysts noted in their report.
According to the survey, 65% of respondents pay for their own mobile phone bill—a finding the analysts said provides further inroads for T-Mobile into the demographic. “This endorses T-Mobile’s strategy targeting millennials through its uncarrier moves including no hidden fees, T-Mobile Tuesdays and Netflix On Us. This finding also supports recent strategies from the other carriers such as Sprint’s Hulu deal, Verizon’s live events giveaways and AT&T’s HBO for Life,” the analysts wrote.
T-Mobile, for its part, has said it expects to gain 2 million to 3 million additional customers during the course of 2018, partly by appealing to specific market segments and demographics. Specifically, company executives said T-Mobile would expand the geographic reach of its network—to 325 million people across 2.5 million square miles by the end of 2018—and would also work to target new demographics like those 55 and older with specific promotions.
One other major growth opportunity is the enterprise market, according to T-Mobile’s John Legere, who noted recently that T-Mobile’s share of the enterprise market is only 2%-3%.