A Breakout Year for Mobile Consumers
Consumers will have more choices to satisfy their desire for unfettered connection in this year, as carriers compete with new gadgets and evolving pricing structures.
The race to 4G speeds. Mergers and spectrum acquisitions. A barrage of faster, fancier devices, and varied plans and pricing structures from carriers jockeying to reduce subscriber churn. In a field dominated by change, mobile consumers can be sure of one thing in the year ahead — device makers and carriers want their business, and will go to great lengths to get it.
Failed AT&T Merger Means More Options
In the wake of AT&T’s decision to scrap its T-Mobile purchase, consumers can expect to have more plans and devices to choose from. If the deal had gone through, most subscribers would be starting this year with one of two wireless service providers: Verizon or AT&T, with Sprint carrying a very distant third place.
Instead, the four main players are still on the field, and customers can expect to enjoy more plan, pricing and device options going forward. According to the DoJ, “consumers won” when AT&T called off the deal, and mobile users can expect to see more innovation and competitive pricing as a result.
In the short-term, AT&T and T-Mobile customers probably won’t face drastic changes. AT&T is expected to keep offering its tiered data plans but may increasingly throttle or cap the heaviest data users until it finds ways to boost spectrum.
T-Mobile subscribers can expect to continue to enjoy the company’s relatively inexpensive smartphone plans, no-contract service options, and wide range of devices. However, the carrier may enter into another deal later this year, changing the competitive landscape once again.
Faster Networks to Satisfy Data-Hungry Devices
The race for data speed is expected to continue to escalate wears on, with Verizon adding yet more markets to its current 179 LTE-covered areas nationwide and competing carriers rushing to catch up.
Sprint’s CEO, Dan Hesse, has named network modernization and improvement his company’s first priority for this year. To that end, the Overland Park, Kan.-based carrier is expected to phase out devices powered by older WiMax technology in favor of newer, faster 4G LTE phones.
Around 120 million Sprint subscribers can expect to see 4G speeds in their areas this year, aided by network spectrum from LightSquared if the company gets the go-ahead from federal regulators to switch on its satellite network.
AT&T and T-Mobile subscribers won’t be left behind, as both carriers expect to add new 4G service areas this year and include more high-speed smartphones and tablets in device lineups as well.
Faster, More Powerful Devices to Take Advantage of All That Speed
As the carriers race to bolster networks, consumers can expect to find a wider selection of faster devices on the shelves to take advantage of spreading 4G coverage.
Consumers who are waiting for a 4G iPhone may get their wish in this year, as Apple reportedly plans to add 4G LTE to its iPhone 5 and iPad 3, both expected later this year. These additions to the Apple family are expected to even the playing-field with Android devices, taking 4G capability out of the equation as consumers choose between iOS or Android.
Android customers can expect an onslaught of new devices this year running the Ice Cream Sandwich update. Android 4.0 will give users streamlined integration to Google’s services and products, such as search, the social network Google+ and Google Wallet, and reportedly will cut fragmentation and make the operating system more secure — good news for people worried about privacy and security, especially as news of Android malware continues to make headlines.
Mobile users looking for another option may choose a new, full-featured Windows phone from Nokia or HTC. HTC fans will likely see fewer releases from the Taiwanese handset maker this year, but consumers looking to buy a Windows phone early could find one from HTC in stores as soon as next month.
Buy a Bucket of Data
New data pricing structures are expected to emerge this year, including shared plans from number-one U.S. carrier, Verizon. Consumers looking to connect varied data-consuming devices, including multiple phones, tablets, Blu-ray players and laptops, can expect to buy “buckets” of data to share among everyone in the household and their favorite gadgets.
So far, Verizon is the only carrier with definite plans to offer shared plans; however, other carriers are sure to follow suit as they develop competitive pricing and creative plan structures to help gain and keep subscribers as well as balance increasing network demands.
And For Those Who Are Tired of It All
Finally, for consumers who don’t want a hot new phone or a pricey data plan, but still want to surf, stream and chat unencumbered, there’s emerging network Republic Wireless. For just $20 a month, Republic subscribers enjoy unlimited data, voice and texts. They can only use the LG Optimus S phone and they must connect via Wi-Fi most of the time.
Republic creates an alternative in a field dominated by competition, mergers and deals and a constant barrage of new gadgets, proving that this year may just be a year consumers will cheer.
