Mobile service revenue in the U.S. wireless market will grow 0.2 percent to $197 billion in 2020 against $195 billion in 2015, spurred by a 5.7 percent growth in prepaid service revenue and 3.3 percent growth in data revenues.
Nearly 100 million wireless connections (including consumer electronics connections but excluding M2M) will be added through 2020, reaching a 128 percent penetration rate of the US population, said Strategy Analytics.
Verizon Wireless and AT&T, which are diversifying their revenue streams, will remain strong leaders. On the other hand, T-Mobile USA and Sprint will gain ground.
T-Mobile has already surpassed Sprint in terms of total subscribers by mid-2015.
“T-Mobile USA with its pro-consumer Un-carrier strategy and straggler Sprint that has shown great strides in network performance—are focused on network efforts to reach LTE network parity with the top 2 and market offers aimed to grow share, yet need to also address higher churn levels and margins,” said Susan Welsh de Grimaldo, director, Wireless Operator Strategies.
Verizon Wireless and AT&T share strategies as defenders of market leadership to find growth by diversifying revenue base, building platforms, engaging the broader ecosystem, and developing multiscreen video offerings.
“Other players add to the dynamic market place, with Google now entered on to the scene as an MVNO and Dish having amassed more spectrum but not revealed strategy. MVNOs have been on an upswing, with Wi-Fi first and target segment approaches,” said Phil Kendall, executive director, Wireless Operator Strategies.