US mobile operators spent 2014 launching retaliatory data pricing salvos against one another, and the barrage will continue into 2015. With the four national operators deploying robust LTE footprints, opportunities for service differentiation are growing scarcer. The greatest price erosion ever in the industry was experienced during Q3 2014.
M&A activity set to continue
US merger and acquisition activity was largely relegated to small acquisitions in 2014. The trend will likely continue as a growing number of small wireless operators struggle to compete against nationwide carriers that have better scale and are engaged in an aggressive price war.
OTT and operators – from foes to friends?
The impact of OTT services grew during 2014, and carriers are finding it increasingly difficult to compete against OTT messaging apps. Many, such as WhatsApp and Facebook Messenger, are garnering significant scale and threaten carrier relationships with their own customers. This scenario will encourage the growth of partnerships between carriers and OTT players during 2015, with the OTT providers benefitting from the carriers’ customer relationships.
WiFi calling on the rise as market evolves
Meanwhile, WiFi has become a critical component of some carriers’ business models as they use the technology to offload traffic from their congested networks. However, WiFi’s availability is also opening the door to new competitors using unlicensed spectrum to challenge carriers’ services that are delivered over licensed airwaves. WiFi’s market impact will evolve during 2015 on multiple fronts, including a broader adoption of WiFi calling.
Source: Current Analysis