Friday, February 18, 2022

Zero-Sum Games are Tough

The U.S. mobile phione services market is quite close to being a zero-sum game, which is to say, account gains by one service provider are nearly a one-for-one loss for another provider. In 2019, there were 135 accounts per 100 persons, for example. 


Since cable TV operators are a growing force in the mobile phone market, more-intense market share battles and share changes are to be expected. 


source: Global Economy 


Some 95 percent of people 18 or older already have subscriptions subscriptions, according to the Pew Research Center. That last few percentage points of non-users includes a few percentage points of potential users who simply do not wish to use mobile phones. 


Growth opportunities arguably remain for users younger than 18, of course. And “subscriptions” also include connections for internet of things devices, so overall, there are other growth mechanisms. Those accounts might have low average revenue per device, but there will many scores of millions of new accounts in service. 


Also, subscriber accounts are a primary, but not the only driver of revenue. Mobile operators always look for ways to boost revenue per account, and have done so. 


source: Evercore ISI, 5GNewsHubb  

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