Are market shares in the wireless telecoms industry normalizing due to price competition, not differentiation? We studied data across more than 55 markets and trends over the past 10 years, and are inclined to answer: Yes. But take a look at the data yourself.
Countries where wireless service has become commoditized, or is ‘on the edge’
Total change in the global population-weighted average ARPU from 2011-16
Countries that have seen declining market share spread in the past 10 years
Total change in the global population-weighted market share spread from 2011-16
Wireless price wars
Competitive pressure is rising in the global wireless telephony industry. The result for telecommunications providers worldwide is stagnant growth, and a slow but seemingly inevitable commoditization of the industry’s primary services.
Strategy&’s annual commoditization tracker analyzes the state of play in markets across the globe by looking at two key metrics: changes in the spread between wireless operators with the largest and smallest share of each market’s subscribers, and in the spread between those with the highest and lowest average revenue per user.
How competitive is the market faced by operators in your country? More importantly, what can be done to break free from the commoditization trap?