[October 23, 2014]

New Study Finds Only AT&T Positioned to Capture Wireless Competitors' Customers Through High-Speed Internet and Home Security Services

American consumers would generally consider their wireless carrier as an option for providing high-speed internet access and home security/automation services. But, new research from Market Strategies International suggests that the potential for capturing customers from other carriers through these services appears limited for every carrier except AT&T (News - Alert).

Less than half of the consumers surveyed for the most recent wave of Market Strategies' ongoing Brand Love study would consider a carrier other than their own for these services. Even during a time of dramatic change in wireless pricing and contract model change in the wireless industry, overall consumer loyalty to their current wireless carrier has remained relatively static.

When consumers' willingness to consider providers for high-speed internet and home security became part of the brand loyalty equation, T-Mobile (News - Alert) fared particularly poorly. T-Mobile did not show within the top three providers considered for any of its competitors' customers, and it fell behind Google even among its own customers for high-speed internet and home security/automation services.

Sprint's (News - Alert) customers also ranked a competitor (Verizon) higher than their incumbent for internet access. While it does lead in consideration for home security and automation among its existing customers, that lead is the weakest among the big four carriers with less than one-third of its customers including it among their potential providers.

Verizon's own customers are loyal, but its reputation among customers of other wireless providers is not strong. Only Verizon's own customers ranked it among their top three potential providers for home security and automation. In addition, Verizon ranked behind its primary competitor, AT&T, for potential high-speed internet consideration among all but its own and Sprint's customers, and customers of other providers even preferred Google and Apple (News - Alert) above Verizon for those services.

AT&T is the only major carrier to conistently show potential consideration among its competitors' customers. The implication? AT&T may be best positioned to capture new consumers through these types of services. AT&T, which has been aggressively promoting its U-verse and Digital Life services, is the only wireless carrier consistently competing with Google (News - Alert) and Apple in consumers' minds for these services.

Pam McGill, senior vice president of Market Strategies and lead researcher for the study, highlighted the key finding of the study:

"Wireless carriers will attempt to broaden their customer relationships to hedge against the decreasing relative importance of wireless carrier in consumer decision-making. Our findings suggest that these services will primarily help carriers keep the customers they have and open up new, non-commoditized revenue opportunities. Loyalty works both ways, and, in general, the loyalty of consumers to their wireless brands will keep product and service diversification from driving significant consumer movement from one carrier to another."

About Brand Love

Market Strategies interviewed a national sample of 1,184 consumers, ages 18 and older for this third wave (989 for the initial benchmark and 1,233 for the second wave). Respondents were recruited from a national opt-in online panel of US adults and interviewed July 8-14, 2014. Due to its opt-in nature, this online panel (like most others) does not yield a random probability sample of the target population. As such, it is not possible to compute a margin of error or to statistically quantify the accuracy of projections. Market Strategies will supply the exact wording of any survey questions upon request.

About Market Strategies International

Market Strategies International is a global market research firm with deep expertise in consumer/retail, energy, financial services, healthcare, technology and telecommunications. Offering custom research services and syndicated research products, Market Strategies provides insight from more than 75 countries, focused in the areas of brand, communications, CX, product development and segmentation. Its syndicated products, known as Cogent Reports, help clients understand the market environment, explore industry trends and evaluate and monitor their brand and products within the competitive landscape.

Since Market Strategies was founded in 1989, it has become one of the largest market research firms in the world, with offices in the US, Canada and China. Read Market Strategies' blog at FreshMR, and follow us on Facebook, Twitter and LinkedIn.

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