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2011 State of Wireless Industry
1. State of the Wireless Industry
Panel
Moderator
Anne Weiler, iQmetrix
Panelists
Scott Aronstein, Connectivity Source
Seamus McAteer, ITG
Akbar Mohamed, Prime Communications
Eric Stachowski, iQmetrix
4. State of Wireless Industry Highlights
! Optimistic about industry in general but less
optimistic about own business
! âŻ% that plan to expand by 50% or greater has decreased
! âŻBig box & carrier consolidation are threats to
independent channel
5. State of Wireless Industry Highlights
! Carriers are still biggest competition
! Uncertainty about pending AT&T acquisition of
T-Mobile as increasing threat
! Optimism driven by growth of diverse devices
and increased data traïŹc because of new uses
6. Most optimistic
Industry Overall âąâŻ 21-51 locations
âąâŻ Verizon dealers
âąâŻ Canadian dealers
Where do you see the Wireless Industry in 5 Years?
Most pessimistic
âąâŻ 3-9 locations
70%
âąâŻ 51+ locations
60% âąâŻ Sprint dealers
50%
40%
30%
Industry will slow down
20%
Stay the same
10%
Industry will grow
0%
2008 2009 2010 2011
Slightly more optimistic than 2011, in every segment at least 50% respondents predict growth of industry
7. Industry Overall Expectation
of larger
increases in
saw
s s market the United
US wirele in States
t decline
8.2 percen 4 percent through 2014
.
20 09 and a 2 .
compared
advan ce in 2010 with 2010.
Beginning in 2011, growth in average
revenue per subscriber (ARPU) will
become the principal driver of wireless
spending for the ïŹrst time.
Source: TIAâs 2011 ICT Market Review & Forecast
8. Industry: Carriers
! Do you think carrier consolidation will have a
positive or negative eïŹect on the industry?
! Almost 40% predict positive outcome
9. Industry: Carriers
! 2/3 of Sprint respondents see negative impact
! âLess consumer choiceâ
! âMore threat to my businessâ
11. Industry: Phones
! July 2011 smartphone audience reached 82.2 M, 35% of US
market (comScore)
! ⯠October 2012 before smartphone sales overtake feature
phone sales
! Google data shows 31% penetration (OurMobilePlanet)
! ⯠70% are ïŹrst time buyers
! Sales of smartphones expected to exceed PCs in 2012
(Morgan Stanley)
! Smartphone ownership expected to reach 43% of
population by 2012
12. Consumers
Industry: Innovation
Who do you see as the
source of innovation?
Âź
13. >80% of 21-50 locations
Your Business are planning to grow
More Verizon dealers
plan to grow than Sprint,
T-Mobile, or AT&T
Where do you see your wireless business in 5 years?
T-Mobile dealers expect to
45% say the same or go out of
business
40%
35%
It will have increased to more than
30% double its current size
25% It will have increased up to double its
current size
20% It will remain the same size
15%
It will be smaller
10%
5% I will have sold it or have gone out of
business
0%
2009 2010 2011
14. 10 and above location
Your Business: dealers expanded most in
2011
Expansion 2011 Canadian dealers most
stable
How have you expanded in the past year? 40% of T-Mobile
respondents downsized in
35% 2011, 35% of Other (US
Cellular, Cricket), 31% of
30% Sprint
25%
Downsize
20%
Stay the same
15%
Expanded by up to 10%
10%
Expanded by up to 25%
5% Expanded by up to 50%
0%
Expanded by more than 50%
2009 2010 2011
15. Your Business: Expansion 2012
What are your plans for expansion in the next year?
45%
40%
35%
Plans for downsizing
30%
No plans for expansion
25%
Expand by more than 50%
20%
Expand by up to 50%
15%
Expand by up to 25%
10% Expand by up to 10%
5%
0%
2006 2007 2008 2009 2010 2011
16. Verizon dealers see signiïŹcantly
Your Business: lower challenge managing carrier
than rest of US & Canadian dealers
Challenges
1-2 locations face greater
economic uncertainty
21-50 locations have most diïŹcult
time managing carrier relationships
What is the greatest challenge you face in the upcoming year?
10-20 locations see greater threat
from big box
35%
30%
25%
20%
15%
10% 2010
5% 2011
0%
Continued Carrier Relationship Increased Big Box Increased Product/
Economic Management Competition Service Complexity
Uncertainty
17. Your Business: Smaller businesses are
seeing a signiïŹcantly
Competition greater level of
competition
What is the level of competition in your Verizon & AT&T, and âBig
3â Canadian dealers see
marketplace compared to last year? more competition than
2010
60%
50%
40%
30% Far more competitive
Slightly more competitive
20%
Same
10% Slightly less competitive
Far less competitive
0%
2006 2007 2008 2009 2010 2011
18. Your Business: Competition
Who do you feel is your biggest competitor?
Response 2005 2006 2007 2008 2009 2010 2011
Your Carrier 1 1 1 1 1 1 1
Other Carriers 2 3 2 2 3 3 4
Big Box Retailers 3 2 3 3 2 2 2
Other Independent Retailers 4 4 4 4 4 4 5
Online Competition - - - - - - 3
19. Your Business: Investments
71% of respondents
are planning to
improve the in-
store experience in
the following ways:
40% of respondents
are planning to
expand/improve
B2B oïŹerings.
20. Your Business: Investments
Do you currently use or plan to use the following in your store?
60%
50%
Mobile Payment
40%
Digital Signage
30% Interactive Retail
Location-Based Advertising
20%
Tablets
POS on Mobile Devices
10%
0%
% Currently Use % Plan to Use % Interested % Do Not Plan to
Use
21. 2011 State of Wireless
Industry Survey
Thank-you to all respondents and
Twitter voters
Looking forward to your responses in 2012
âąâŻ Respondents get survey results
âąâŻ Additional questions include churn, value-added
services, commissioning, and more detail on the
topics reviewed today