Oct22 Written by:
Compass Intelligence
10/22/2009 12:59 PM
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Mobility in Medium & Large Businesses
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22 October 2009 |
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Wireless Talk:
Major points of discussion in this research include results on customer perceptions of key carriers. How a provider is perceived significantly impacts both renewal potential, and new subscriber acquisition.
Based on a 2009 survey: Verizon stands out as the carrier to have exclusively positive characteristics associated with its brand, according to those surveyed. Network reliability, selected by 48% of users in large companies, is most often used to describe Verizon.
DID YOU KNOW? Compass Intelligence provides deep analytics for the wireless market in the US. We provide insights into both the business and consumer segments, as well as detailed Size of Business break-outs for our business-related data and forecasts.
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Your Author:
Kneko Burney
Chief Strategist
Compass Intelligence
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The Big Business of Mobility
Despite the economic recession, wireless subscriptions continue to grow at a healthy rate in the US. Wireless subscribers working for large and mid-sized companies (firms with 100+ employees, referred to as "Large Companies") comprise roughly 60% of the business wireless segment in 2009. Due to consistent down-sizing and layoffs, this segment of wireless subscribers (composed of subscribers on a company plan or recieving a company discount) has come under pressure this year and, possibly, will contract next year as well. However, the economy is showing early signs of a recovery and large companies are already seeking ways to extract more value from thier wireless investments. This should continue to drive rates of penetration upward, particularly of non-phone wireless solutions like mobile broadband, GPS and mobile applications.
Carrier Analysis:
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Verizon holds a dominant market share position in this market segment, with 31% of large company subscribers (across all groups). While Verizon is exceptionally strong among business wireless subscribers, this provider is less dominant among pure consumers.
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AT&T, on the other hand, does well among consumer subscribers. More importantly, this provider out-performs in smartphones and, to a lesser degree, mobile broadband for employees in large companies. AT&T has a significantly higher market share (37%) among wireless users working for companies with 1,000 to 9,999 employees versus the broader large company segment (27%).
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Sprint's dominant market share position is within company-liable subscribers, with its share in this segment (30%) being double that of its share among consumer subscribers (13%). Sprint has done an excellent job of penetrating the largest companies. The question is will the company be able to extend its reach further into the Middle Market?
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Carrier Market Share, Large Company Wireless Subscribers
Source: Compass Intelligence, 2009
Big Business?
Though this is the largest segment of business wireless subscribers, company policy remains a key barrier to real ARPU growth among the company-liable portion of this large segment. However, new opportunities for Mobile Broadband and data-related services are quite promising, particularly for this class of wireless subscriber. In terms of market share, AT&T and Verizon have the largest portions of this market. Sprint's position is much larger when only looking at company-liable wireless subscribers working for large companies, but negative brand perceptions remain a challenge.
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Analyst Contact info: Kneko Burney, kneko@compassintelligence.com |
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