5G is around the corner and will bring major changes to the industry with it. Unlimited calling and texting is free at this day and age, the only thing you are paying for service with your wireless provider is for the data you are using and or the device you are using with that provider. But now with more and more people buying unlocked phones and more accessible from different outlets Amazon,Wallmart,Ebay, second had devices. That means less and less revenue to be made.
Now there are also more and more competition in the market, Sprint owns Boost, T-Mobile owns metro pcs and AT&T owns cricket. And now even Verizon just stepped in to the unlimited territory and prepaid. It’s getting really ugly in the market and to top things off 5g is coming out faster than many accepted. By 2019 devices will be capable to handle 5g and this only means that may things will change faster then what we previously thought. Consumers don’t see this but all these companies are now fighting block by block to open stores and it’s also hurting dealers and now profits are dropping for all of these carriers. They are now making %60 less then what they used to make 5 years ago. Even their accessory sales have been slashed more than half because of competition with amazon and Chinese sellers that sell for dollars compared to the $40 cases you see the dealers sell for.
2 year contracts are now the thing of the past and everyone is switching to prepaid, but here is the problem with that. Now don’t get me wrong this is perfect for the consumers but not for the dealers and the US wireless carriers. Majority of dealers get payed off of commission and let’s say previously they got payed the first month of service meaning $60-$80 for unlimited plan for the first month now the plans are low as 2 lines for $50 that is less than half the commission dealers previously received. Combined with less sales because of competition from amazon and other carriers. Dealers will end up closing shop as well. and without dealer’s carriers can’t run business as usual.
These carriers won’t survive like this, something will have to change for them to stay alive.
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