Future connection growth will continue as new 4G LTE devices (smartphones and tablets) are released. These devices will attract and retain higher value retail postpaid connections, contribute to continued increases in the penetration of data services and help companies to remain competitive with other wireless carriers. However, as a result of the increasing competition within industry, some companies are expecting their churn to increase.

Future growth opportunities will be dependent on expanding the penetration of network services, offering innovative wireless devices for both consumer and business customers and increasing the number of ways that customers can connect with network and services. Service and equipment pricing play an important role in the wireless competitive landscape. As the demand for wireless services continues to grow, wireless service providers are offering service plans that include unlimited voice minutes and text messages and a specific amount of data access in varying megabyte or gigabyte sizes or, in some cases, unlimited data usage at competitive prices.

T-Mobile has changed the industry by also allowing customers to rollover unused data allowances to the next billing period and are also offering installment plans that decouple service pricing from equipment pricing and blur the traditional boundary between prepaid and postpaid plans. It is expected that customers will continue to adopt these installment plans, which also offer discounts on the cost of wireless service.

Furthermore, T-Mobile is offering new customers price plans that undercut pricing under the customer’s service plan with its current wireless provider and provide a credit to reimburse early termination fees paid to their former wireless service provider, subject to certain limitations, in addition to promotions targeted specifically to customers of industry leaders (Verizon and AT&T). To stay competitive, companies will need to compete in this area by offering our customers with services and equipment that they will regard as the best available value for the price, as well as service plans that meet their wireless service needs.