The Moblie ARPU of Telecom industry in United States of America attained a value of 32.52 USD/Month in 2020
The industry recorded a historical decline (CAGR) of 4.39% between 2017 to 2020, and is expected to grow by ...
GlobalData projects the industry to decline at a CAGR of ...
The Mobile ARPU of Telecom industry in United States of America recorded a single-digit YoY decline in 2020
The mobile phones market in the US experienced a significant decline during 2017-2020. The performance has been volatile with the market stagnating in 2020.
The US mobile phones market has saturated due to the high penetration of smartphones in the country. This weakens market growth as there is little value that can be generated from new mobile subscribers. However, data usage has been increasing due to the expansion of smartphones, the availability of various rate plans and the proliferation of high-speed data services. Mobile data services have added value to mobile packages and driven market growth.
Average revenue per user (ARPU) captures the average monthly revenue generated from each mobile subscription during a given calendar year.
Consumer trend in the mobile phones market in the US
Consumers tend to keep hold of mobile phones for extended periods of time, as they often are expensive and if on a contract, consumers are obliged to pay for the phone over an agreed time period, commonly around one or two years. As a result, demand tends to stem from upgrades which are infrequent. However, consumers are starting to hold on to phones for longer prioritizing attractive mobile data packages over new mobile hardware releases. Fewer handset sales combined with intense price competition has caused declines in postpaid and prepaid Average Revenue Per User (ARPU) and lower hardware volumes causing the overall market value to stagnate.
Impact of Covid-19 pandemic on mobile industry in the US
During 2020, US mobile services providers started to activate their 5G mobile networks and launch commercial 5G mobile services as compatible next generation mobile phones. High demand for 5G services was expected to drive the market value up in 2020. However, the market experienced an unexpected downfall as a consequence of the COVID-19 pandemic. The mobile phones market was struck by an industry wide decline in customers and consumer demand for cheaper mobile deals. Mobile carriers also experienced lower roaming revenue due to global travel restrictions and wireless equipment revenue decreased as a result of a lower gross additions and lower device upgrades by existing subscribers during COVID-19.
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