Syntonic, a mobile service provider, recently announced its predictions for mobile service trends for 2018 based on a survey of users of its access services in wireless markets around the world. The rising demand for content by consumers is a key driver of these changes.
- Consumers will buy unlimited data plans at a higher rate. However, in order to increase their profits, cellular companies are predicted to lower the quality of the service included, such as providing lower video quality and slower speed internet, and charge consumers extra for top quality service.
- Verizon will acquire Time Warner as part of a larger plan to transition from a mobile service company to a global media enterprise.
- Vodafone, which is currently the fifth largest mobile operator, is planning to re-enter the US Market either under T-Mobile or Sprint.
- More phone companies will include data roaming plans and EU legislation will likely drive prices lower, making it easier for travelers to access internet overseas.
- Internet connected consumer devices such as watches and automotive technologies will continue to disrupt the mobile and telecom industries causing wireless carriers to change consumer data plans for IoT devices. Broad scale use of sponsored data for classes of consumer device scenarios such as fitness apps sponsoring wearable devices will give consumers an offset against higher IoT costs.
Overall, the focus on data-heavy apps such as music and video streaming is adding to pressure on the entire mobile industry, accounting for 85 percent of total mobile time and approximately 20 percent of total media time spent over the past year, according to eMarketer. As a result 2017 saw an unprecedented, unlimited data price war among the major U.S. mobile operators, while M&A activity continued between telecom giants and content behemoths.
2018 is expected to be a culmination of the stress between consumer demand and carrier capabilities.
