2011 state of wireless industry
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State of the Wireless Industry Panel
Moderator Anne Weiler, iQmetrix
Panelists Scott Aronstein, Connectivity Source
Seamus McAteer, ITG Akbar Mohamed, Prime Communications
Eric Stachowski, iQmetrix
7th Annual iQmetrix State of Wireless Industry Survey
158 Respondents
State of Wireless Industry Highlights
! Optimistic about industry in general but less optimistic about own business ! % that plan to expand by 50% or greater has decreased
! Big box & carrier consolidation are threats to independent channel
State of Wireless Industry Highlights
! Carriers are still biggest competition ! Uncertainty about pending AT&T acquisition of
T-Mobile as increasing threat
! Optimism driven by growth of diverse devices and increased data traffic because of new uses
0%
10%
20%
30%
40%
50%
60%
70%
2008 2009 2010 2011
Where do you see the Wireless Industry in 5 Years?
Industry will slow down Stay the same Industry will grow
Slightly more optimistic than 2011, in every segment at least 50% respondents predict growth of industry
Industry Overall
Most pessimistic • 3-9 locations • 51+ locations • Sprint dealers
Most optimistic • 21-51 locations • Verizon dealers • Canadian dealers
Industry Overall
US wireless market saw
8.2 percent decline in
2009 and a 2.4 percent
advance in 2010.
Expectation of larger increases in the United States through 2014 compared with 2010.
Beginning in 2011, growth in average revenue per subscriber (ARPU) will become the principal driver of wireless spending for the first time.
Source: TIA’s 2011 ICT Market Review & Forecast
Industry: Carriers
! Do you think carrier consolidation will have a positive or negative effect on the industry?
! Almost 40% predict positive outcome
Industry: Carriers
! 2/3 of Sprint respondents see negative impact ! “Less consumer choice”
! “More threat to my business”
Industry: Phones
Sprint, AT&T, and dealers >10 locations see biggest shift to Smartphones
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
< 40% 40% - 60% 60% - 75% > 75% > 90%
% of Expected Smartphone Sales 2012
2010
2011
Industry: Phones
! July 2011 smartphone audience reached 82.2 M, 35% of US market (comScore) ! October 2012 before smartphone sales overtake feature
phone sales ! Google data shows 31% penetration (OurMobilePlanet)
! 70% are first time buyers ! Sales of smartphones expected to exceed PCs in 2012
(Morgan Stanley) ! Smartphone ownership expected to reach 43% of
population by 2012
Industry: Innovation Who do you see as the source of innovation?
Consumers
®
Your Business
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2009 2010 2011
Where do you see your wireless business in 5 years?
It will have increased to more than double its current size
It will have increased up to double its current size
It will remain the same size
It will be smaller
I will have sold it or have gone out of business
T-Mobile dealers expect to say the same or go out of business
>80% of 21-50 locations are planning to grow More Verizon dealers plan to grow than Sprint, T-Mobile, or AT&T
Your Business: Expansion 2011
0%
5%
10%
15%
20%
25%
30%
35%
2009 2010 2011
How have you expanded in the past year?
Downsize
Stay the same
Expanded by up to 10%
Expanded by up to 25%
Expanded by up to 50%
Expanded by more than 50%
40% of T-Mobile respondents downsized in 2011, 35% of Other (US Cellular, Cricket), 31% of Sprint
10 and above location dealers expanded most in 2011 Canadian dealers most stable
Your Business: Expansion 2012
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2006 2007 2008 2009 2010 2011
What are your plans for expansion in the next year?
Plans for downsizing
No plans for expansion
Expand by more than 50%
Expand by up to 50%
Expand by up to 25%
Expand by up to 10%
Your Business: Challenges
0%
5%
10%
15%
20%
25%
30%
35%
Continued Economic
Uncertainty
Carrier Relationship Management
Increased Big Box Competition
Increased Product/Service Complexity
What is the greatest challenge you face in the upcoming year?
2010
2011
1-2 locations face greater economic uncertainty 21-50 locations have most difficult time managing carrier relationships 10-20 locations see greater threat from big box
Verizon dealers see significantly lower challenge managing carrier than rest of US & Canadian dealers
Your Business: Competition
0%
10%
20%
30%
40%
50%
60%
2006 2007 2008 2009 2010 2011
What is the level of competition in your marketplace compared to last year?
Far more competitive
Slightly more competitive
Same
Slightly less competitive
Far less competitive
Smaller businesses are seeing a significantly greater level of competition Verizon & AT&T, and “Big 3” Canadian dealers see more competition than 2010
Your Business: Competition
Who do you feel is your biggest competitor?
Response 2005 2006 2007 2008 2009 2010 2011
Your Carrier 1 1 1 1 1 1 1
Other Carriers 2 3 2 2 3 3 4
Big Box Retailers 3 2 3 3 2 2 2
Other Independent Retailers 4 4 4 4 4 4 5
Online Competition - - - - - - 3
Your Business: Investments 71% of respondents are planning to improve the in-store experience in the following ways:
40% of respondents are planning to expand/improve B2B offerings.
Your Business: Investments
0%
10%
20%
30%
40%
50%
60%
% Currently Use % Plan to Use % Interested % Do Not Plan to Use
Do you currently use or plan to use the following in your store?
Mobile Payment
Digital Signage
Interactive Retail
Location-Based Advertising
Tablets
POS on Mobile Devices
2011 State of Wireless Industry Survey
Thank-you to all respondents and Twitter voters
Looking forward to your responses in 2012 • Respondents get survey results • Additional questions include churn, value-added
services, commissioning, and more detail on the topics reviewed today
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