The vision for 2020 is clear - with new phones, unlimited data plans and 5G rolling out, consumers will be faced with a deluge of options. So, what can carriers offer that will help them keep their current subscribers - and win new ones?
The challenge for carriers will be to differentiate, break through and give consumers the experiences they want - not just now, but also for the decade ahead. As innovation continues to keep the excitement brewing in the mobile space, there is a growing opportunity for carriers to get creative and find ways to win and keep new subscribers.
And with that as our backdrop, here are our “good,” “bad” and “ugly” predictions for choice in 2020.
#1: THE GOOD - A Major Carrier Chooses to Take Ownership of The Device to Break the Current OSI Model
The 7 Layers of OSI. Image credit: Webopedia.
Today, carriers own the bottom layers of the OSI (Open Systems Integration) model. They build the networks, buy the spectrum, etc., but they don’t own the top. In reality, the presentation and application layer should be their birthright, but they’ve literally handed it to others. They subsidize the presentation layer (the device), and get their lunch eaten in the application layer (Google, Facebook and other OTT apps).
Carriers currently exist on their networks, but that puts them in a precarious position. Subscribers only really interact with them when they pay their bill or have an issue. There’s no real relationship there, and carriers have failed in the decade that we’ve had smartphones to make any real headway in building that relationship. A consumer’s loyalty is with the brands with whom they interact and engage with - the phone itself and the application. To win the consumer, carriers must create services and experiences to move into the top layers.
#2: THE BAD - Choice Overload is Real, and Becomes an Issue in 2020
In the 3G and 4G eras, people had smartphones that already offered a number of options for content. With the faster loading and streaming world of 5G just around the corner, consumers are undoubtedly going to be faced with the problem of “choice overload” - which means the winners are going to be determined by whom can get their content in front of subscribers’ eyes first. Pro tip: Push notifications are not the answer - 68 percent of mobile users want a different solution.
Greg Wester,
CMO,
Mobile Posse
Consumers today unlock their smartphones an average of 70 times a day. More and more frequently, these unlocks occur with no predetermined destination or app in mind. We refer to this state of mind as “appnostic.” A full 88 percent of mobile users regularly exhibit appnostic behavior, and two out of every three consumers want better mobile content discovery.
Content discovery tools will become increasingly important in this environment. With so many options, consumers will appreciate assistance in curating their feeds and helping serve them the videos, podcasts, articles, images and apps that are meaningful to them. Samsung Daily and the next generation of Apple News are examples of how this can be successful, but they’re just the tip of the iceberg when it comes to frictionless, personalized content discovery.
#3: THE UGLY - A New Wave of Carrier Choice (AKA Churn)
5G is likely to cause the first consumer-coveting “whoa” moments since the iPhone was launched exclusively to AT&T. Back in Q3 2010, an exclusive agreement to market the iPhone powered record revenue numbers for AT&T, as consumers coveted Apple’s cool new device - and had to switch to AT&T to get their hands on it. There hasn’t been a device or technology that’s generated as much buzz or allowed carriers to stand out so much since that year - until now.
The rollout of 5G could potentially have the same effect on a market-by-market basis, as consumers witness others with new phones on a speedy new network - and watch as their friends suddenly gain access to an on-demand and frictionless world that they’re eager to be a part of.
2020 and the rollout of 5G are likely to be game changers for consumers, carriers and OEMs alike. More robust phones, better data plans and a powerful new network could yield exciting innovations in the year ahead - improvements that make life better for consumers, while also yielding positive results for businesses in the mobile space.
