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Teen Mobile Market Over Saturated

Operators Beware: Teen Mobile Market Running Out of Steam as Subscribers Reach the Saturation Point, According to MultiMedia Intelligence

The US 12-17 teen cellular subscribers surpassed 16 million in 2007, according to market research and consultancy firm MultiMedia Intelligence (http://www.MultiMediaIntelligence.com). This is up 12% from 2006.

By 2012, the number of teen subscribers will reach 17 million, a delta of only 1 million subscribers from 2007. Wireless penetration rates for teens are reaching saturation, resulting in stagnating growth. Since the teen market is not a multiple handset demographic, subscriber growth is forced to slow.

“The teen market has been the ‘golden child’ for cellular providers in the US,” according to Frank Dickson, Chief Research Officer for MultiMedia Intelligence. “In addition to growing subscribers, teen ARPU has been growing higher than that of the overall market. Teens simply use their phones to do more, from text messaging to purchasing premium content. However, pricing pressures and teen cellular saturation are bringing an end to the teen cellular gold rush.”

Key findings regarding teen wireless subscribers include:

  1. Subscriber growth is seasonal, with Q3 and Q4 the stronger quarters.
  2. Over half of teens are cellular subscribers by age 13.
  3. On average, girls mature cellularly earlier than boys. Even at the higher age groups, teen female subscribers outnumber male subscribers. However, the gap among those in the 17-year-old age group has narrowed greatly.
  4. The Hispanic teen market has become significant, projected to approach 3 million subscribers by 2012.

The research, “The Maturing Wireless Teen Market: 12-17 US Teen Wireless Subscribers, Revenue, ARPU and Content,” analyzes the US 12-17-year-old teen wireless market in terms of subscribers, ARPU, and revenue. Forecasts and segmentation are provided on an annual and a quarterly basis by race, age and sex. A special emphasis is placed on examining the market on a gender by age perspective as well as the Hispanic/Latino ethnicity. The research relies on the strength of supply-side models of MultiMedia Intelligence and primary-based survey data of 2,000 to 2,500 teens annually from the Simmons National Consumer study, a product of Experian Consumer Research. The result is integrated research, creating exceptional insights on an under-researched market.

This research is a result of MultiMedia Intelligence’s strategic partnership with Experian. The partnership combines MultiMedia Intelligence’s vast industry expertise, market sizing and forecasting models and databases with Experian’s in-depth data on consumer behavior, psychographics, lifestyles, opinions and attitudes. Together, they deliver industry-first market segmentation, insights and forecasts based on combined superior supply-side and demand-side views of the markets, never before offered in this data-driven, data-hungry market.

For more information, visit http://www.MultiMediaIntelligence.com or contact
Frank Dickson
(480) 308-0902
frank (at) MultiMediaIntelligence.com

About Multimedia Intelligence
MultiMedia Intelligence, a market research and consultancy firm, specializes on the markets and technologies for delivering and monetizing digital content and services across multiple platforms. We look beyond the classic ‘three screens,’ which include TVs, mobile handsets, and computers. We put markets into the broader context of the industry ecosystems that are converging and changing traditional business models.

About Experian Consumer Research
Experian Consumer Research (ECR) is the home of the Simmons suite of consumer studies which have been The Voice of the American Consumer™ for more than 50 years. The Simmons National Consumer Study (NCS) and the Simmons National Hispanic Consumer Study (NHCS) are accredited by the Media Ratings Council (MRC).

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