Feature Article

February 08, 2013

Study: Sprint Nextel and T-Mobile USA Using Unlimited Data to Initiate Wage Comeback

Strategy Analytics, a reputable provider of consulting and advisory services, and market intelligence in emerging technologies, published a recent study indicating that Sprint Nextel and T-Mobile USA are leveraging unlimited data to grab market share against giant rivals in the industry.

The study by Strategy Analytics Mobile Broadband Opportunities, “Unlimited versus Tiered Smartphone Data Plans: Market Evolution and Opportunity,” reported that more than 50 percent of smartphone owners in the U.S. who said they’re using unlimited data showed a keen interest in effective plans that guarantee speed, customization, and sharing data on family plans across multiple devices.    

While T-Mobile USA and Sprint Nextel are empowering themselves with unlimited data to grab major market share, leading carriers like Verizon Wireless and AT&T are leveraging their number-one 4G LTE network coverage to gain new customers and retain existing ones.

At the same time, they are enhancing their Tiered Data Plans by adding unlimited text and voice bundles, data share across multiple devices, and no additional fees for tethering.

According to the report, in major 4G markets like the U.K. and U.S., the companies face a new competition between tiered and unlimited data. While certain mobile and wireless communications carriers are diversifying into unlimited data to capitalize on this demand, major carriers are concentrating on ‘sweetening’ their existing tiered plans with additional features to attract new customers by switching to unlimited data plans.

Strategy Analytics looks deeper into the pros and cons of unlimited data, based on customer feedback from extensive surveys held in the U.K., U.S., China and other markets globally. It further analyzes what would happen to a consumer's demand if a data cap is ever attained, what sort of plans would attract customers for unlimited data, if mobile video would have an impact, and if there's a growing interest in monitoring the data usage in real time across multiple devices.

Susan Welsh de Grimaldo, director, Strategy Analytics Mobile Broadband Opportunities, feels that in today’s scenario, mobile phone users are exhibiting an optimistic buyer behavior for advanced levels of customization in mobile data plans, with user-friendly tools to track the usage so that data consumption remains in their control.

In this discussion, the director of Wireless Operator Strategies remarked that with wireless networks getting congested everyday, the tiered mobile data plans may not address the challenges of peak traffic. The new operators of 4G networks may last for a short time with their unlimited data, but they’re not targeting the pain points of networks or consumers.

Edited by Braden Becker

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