As Wireless Market Matures, Marketing Opportunities Abound

Posted by leah on 28 Oct 2011

"Can you name 3 people that don't own a cell phone?"

Ten years ago, this was my favorite question. I found that after a few seconds, nearly everyone I asked in 2001 could think of several friends and family members that hadn't entered the world of wireless.

When I ask people that same question now, they struggle to think of anyone that can't make a call on the go -- even their grandparents are cell phone owners!

Recently released statistics from CTIA, The Wireless Association, validate this sentiment: the US now has more wireless connections (327.6 million) than it does people (315.5 million). That's a saturation rate of 103.9% - and a show of the wireless industry's explosive growth throughout the past 10 years.

When I first entered the wireless business, the market was mainly focused on post-paid contracts, where consumers with good credit were able to purchase a wireless device and pay a monthly fee for service.

The non credit worthy consumers that wanted to go wireless then had to pay big deposits to do so. This excluded many potential customers based on their credit rating, but it proved a secure route for providers to continue growing their base without fear of non-payment.

As confidence grew, and consumer wireless saturation reached 75% in 2006, the pre-paid sector skyrocketed. Now, even people with poor credit could have a cell phone. Pre-paid agreements had several perks that drew in new customers: there was no early termination fee, it was easy to switch carriers, and minors (those under 18) were allowed to take out their own plan for the first time.

At this point in wireless history, the market reached fair value, and consumers could finally pay a fair price. The need to "sell" wireless to the masses diminished -- people were already hooked.

It wasn't until 2010 that the wireless market had fully matured. When the Universal Service Fund began offering Lifeline Assistance for wireless, it was the first time individuals with no credit could regularly use a cell phone -- and for free!

With almost no remaining barriers to entry, a dwindling landline market, and an influx of new technology, the wireless industry officially entered its prime.

Now that everyone I know -- and probably everyone you know, too -- has a cell phone, I'm committed to harnessing the power of this network to quickly and effectively communicate marketing messages.

I also have a new favorite question: "Can you name 3 people that don't use texting?"