3 Biggest Sources of Telecom Market Competition

The past 12 months have seen another year of change that is dramatically reshaping telecom and creating new market competition from all angles. Stacy Hamer, iQmetrix Vice President of Client Experiences, told the most recent iQmetrix Telecom Industry Address, “What an exciting time for all of us to be part of the telecom industry, because of the radical transformation that’s rolling out right in front of us.”

Here are Hamer’s three key sources of market competition the telecom industry is facing right now and how they will affect carriers and wireless retailers. For more details, check out her presentation extract in the four-minute video below.

  1. New market competition from wireline: “As far as competition is concerned, it’s a new story right now,” said Hamer. This starts with players in the wireline space making some serious waves in the wireless market. “Players like Spectrum or Xfinity Comcast are making a huge splash by gaining really good traction in their subscriber base. This is getting the attention of the Tier 1 and Tier 2 carriers.” The ability of wireline providers to bundle services such as cable and internet with wireless rate plans makes them appealing to consumers and a competitive threat to traditional carriers.
  2. More competition from new online carriers: Hamer pointed out that another source of market rivalry comes from the new cohort of online-only providers with no physical retail stores, such as Mint Mobile. “Added to that, MVNOs are popping up left and right and promoting themselves as an alternative to the big guys,” said Hamer. “Some are really pushing the industry as they don’t even have a physical presence.” Instead, some have a full fleet of thousands of branded trucks across the country, that will simply go to where the customer is to sell them their devices and rate plans. “Competition is coming from all angles, so if you’re a traditional carrier, you need to be differentiating yourself in order to compete,” she added.
  3. Market convergence and power plays: “In addition to all that new competition, the market is in a constant state of flux—on an even larger scale than we’ve ever seen, and faster than ever before,” Hamer explained. She referenced the previous T-Mobile acquisition of Spring, Verizon acquiring Tracfone, and Rogers massive $26 billion (CAD) takeover of Shaw. “All of this consolidation made space for Dish, which itself acquired Ting and Boost Mobile, which in turn is snapping up smaller MVNOs like Gen Mobile.” Hamer predicted that these big carriers are getting primed to make further powerful plays, potentially entering new markets and adding to the fierce competition. In addition, some major players have seen new leadership who are set to make their mark on the industry, particularly at Samsung, Rogers, and Cox. “We’ll sit back with some popcorn, and all eyes will be on these big moves as this could be highly disruptive to the industry,” Hamer added. “Whether you’re a carrier or wireless retailer, you need to be aware of where competition is coming from and how to improve your own brand and experience.”

To watch Stacy Hamer’s market competition segment of the iQmetrix Telecom Industry Address, check out the four-minute video below.