Why has U.S. Cellular not participated in the rapid growth mode of the wireless industry over the last decade? AT&T Mobility and Verizon Wireless have led this parade for years. Then after several years, T-Mobile US started to grow as well. Now Sprint is jumping into the race. Where is U.S. Cellular?
The wireless industry has grown and changed so much over the last decade. Roughly eight years ago the first iPhone and Android phones hit the marketplace and rapidly transformed the entire space virtually overnight. Before that BlackBerry and Nokia led the space. Now they are struggling and Apple, Google and Samsung lead.
Today, instead of wireless cellphones, we all carry smartphones. This is transforming every aspect of our lives. And growth is continuing as we see other industries jumping into the wireless space like automotive, health care, retail and more. So growth is changing, however growth remains strong.
What about C Spire Wireless, Google Project Fi and others?
So with all that said, where is U.S. Cellular? They are No. 5 in size. In fact, if we pull the camera back, we can ask the same question about others in the wireless space. C Spire Wireless is a smaller, regional, wireless provider in Mississippi and they should be doing strong business as well in their market area. They are No. 6 in size. Why are they all so quiet?
Then there are newcomers like Google Project Fi entering the wireless space with their mobile virtual network operator business. Many expected this to rapidly change the wireless space, but it has not. Why? Perhaps it’s because they only sell their less than popular Nexus device rather than other hot devices. This is the same problem Microsoft is having with their Lumia. Perhaps it’s something else.
Line separating growth and no-growth wireless carriers
Whatever the reason, there is a real line separating companies who are really ramping up growth and those who are not. Bottom line, the question is simple: why is U.S. Cellular, C-Spire, Google Project Fi and others not catching the same growth wave as AT&T Mobility, Verizon Wireless, T-Mobile US and Sprint?
Spectrum may be part of the answer. AT&T Mobility and Verizon Wireless have what they need. Sprint has loads. T-Mobile US has little. Yet all of these players are still strong and growing. Smaller firms have a disadvantage. Because of limited spectrum, they have little of none of their own. They must use spectrum from other carriers who make theirs available on a wholesale basis to them.
So while spectrum is an issue, this is not the real reason these second tier wireless carriers are so sleepy.
Marketing is the missing secret ingredient
I think the reason is simple. They have not woken up to the new world of wireless marketing and the wireless world is leaving many of them in the dust.
This is a problem that can be quickly solved. After all, both T-Mobile US and Sprint are transforming themselves and growing once again. If that’s the case, there is no reason why U.S. Cellular, C Spire Wireless, Google and other smaller, tier-two wireless carriers and MVNO players shouldn’t be joining the party.
I like smaller carriers. They fill an important slice of the pie. They can be very innovative and change rapidly chasing the growth curve faster than bigger competitors. So bottom line, if T-Mobile US and Sprint have restarted their growth engines, then U.S. Cellular can do the same thing. Once again, the question is why aren’t they growing?
Why U.S. Cellular is not growing
If that’s the case, why are they still stalled? AT&T Mobility and Verizon Wireless have led the wireless space for years. Today, as wireless matures, they have many different growth engines revving up. They have wireless, wireline, television through IPTV like U-verse, DirecTV, FiOS and much more. They are expanding into other businesses as well. They are helping other industries like automotive and health care enter the wireless space.
Sprint and T-Mobile US are strictly wireless plays, but they have started to see growth as well. So the wireless ride is not over. In fact, for these smaller carriers, this is a golden time for growth.
U.S. Cellular needs to ‘youthenize’ their brand
The problem seems to be a lack of marketing excitement. Their brand seems to be old and tired. It’s a brand that has not really refreshed and what I call “youthenized.” Not yet anyway.
Do they even understand the new challenge? That’s the question. It’s a matter of lack of marketing and excitement. Today the marketplace is different. Today carriers are no longer focused on winning newcomers to the smartphone race.
Today just about everyone who wants a smartphone, has a smartphone. So today carriers are fighting it out between themselves trying to win market share from each other.
Carriers must market like crazy
That means energetic marketing is the key to success. That means carriers must look better and stronger and younger and sexier than their competition. That means they must designate a slice of the market and win in that slice. That means their brand has to touch a customer in a unique way. That means they have to talk about happy customers, satisfied customers, offer great deals, focus on great quality, reach, speed and service, and generally market the heck out of this golden opportunity.
Where U.S. Cellular is missing the mark
That’s where I think U.S. Cellular is missing the mark. They are too quiet. They are still marketing the same way they did 10 years ago. However, what worked a decade ago ago is failing today.
Nearly every carrier is in continual close contact with me, keeping me updated on their messaging and their growth. They want to make sure that I understand their direction, so I can talk about it and spread the word. It’s been this way for nearly 30 years.
During that time, I hardly ever hear from U.S. Cellular and that speaks volumes to me. I firmly believe that if T-Mobile US and Sprint can restart their growth engines, U.S. Cellular can do the same thing. Will they, is the question. We’ll have to wait and see. So far, we don’t see anything in that direction, but let’s hope. Anything can happen.
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