North American Wireless Penetration To Hit The Wall
A new report by Dominion Bond Rating Services Ltd.(DBRS) suggests that North American wireless growth will stall once penetration reaches 50%. They suggest that carriers focus less on new subscribers and focus on reducing churn, managing expenditures and reducing acquisition costs. DBRS points out that to get beyond 50% penetration rates is not only expensive for carriers but at that point they are going after lower ARPU customers. We’d like to see a penetration report that looks at wireless adoption rates not across North America, but across the top 50 North American markets. Given the size and population distribution of the US and Canada such a report may paint a more accurate picture of the true size of the wireless market and wireless adoption rates.
