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Why Mobile companies will die out!

5g is around the corner and this is my take on 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 accesable from diffrent 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. Its getting really ugly in the market and to top things off 5g is coming out faster then 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 dont see this but all these companies are now fighting block by block to open stores and its 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 there accessory sales have been slashed more then 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 dont 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 lets 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 then half the commission dealers previously received.  Combined with less sales because of competition from amazon and other carriers. Dealers will end up closing shop aswell. and without dealers carriers cant run business as usual.

These carriers wont survive like this, something will have to change for them to stay alive.

JG is a Entrepreneur / YouTuber that has love for new technology and the future it will bring. Graduate with a BA in Information Systems from SFSU. He has Combined over 20million views on his YouTube channels and created 3 online business “JGTechBlog” – “UnlockTheSource” – “CLEQQ”. One thing many dont know about JG is that he has a huge Passion for photovoltaic systems and sees them as the future for everything in the world.