Operators Beware: Teen Mobile Market Running Out of Steam

The US 12-17 teen cellular subscribers surpassed 16 million in 2007, according to market research and consultancy firm MultiMedia Intelligence - which is up 12% from 2006. Their new report says that by 2012, the number of teen subscribers will reach 17 million, a growth of only 1 million subscribers from 2007. They cite the issue of wireless penetration rates for teens reaching saturation, resulting in stagnating growth, and 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:

• Subscriber growth is seasonal, with Q3 and Q4 the stronger quarters.
• Over half of teens are cellular subscribers by age 13.
• 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.
• The Hispanic teen market has become significant, projected to approach 3 million subscribers by 2012.

Posted to the site on 30th June 2008