2020 proved just how integral telecommunications are to our day-to-day lives. As the world was forced indoors and in home, telecom services enabled our society to endure and stay connected, in business, and entertained. It’s no surprise Telecom was one of the least impacted industries due to the pandemic, as wireless and wireline usage by both consumers and businesses soared.

However, the industry has broader challenges that pre-date COVID. ARPU is down despite mobile data usage continuing to rise, the U.S. market is nearly fully saturated as over 96% of adults own a wireless phone, and churn rates remain historically low. This has led to further consolidation via mergers and acquisitions, but also a prioritization of marketing to create brand differentiation, educate consumers on the benefits of 5G, and cross-selling, upselling, and conquesting specific customers.

Telecom remains a top ad spending industry (#3 behind Auto and Pharma) with little signs of slowing down as the larger MNOs focus on winning the 5G market, and MVNOs double down on price to win customers with the promise of better value.

If you have any questions, please reach out to Nicholas Youngman, VP, Client Strategy.