Survey Shows Internet and Cell Service Are Increasing in Value
ShareTracker has released new “switcher” data, analyzing internet, TV, and cell spend over the last 18 months. The results should come as welcome news to service providers.
The survey found that internet and cell switchers paid more per month on average in 2020. In contrast, in 2019 they reduced costs by switching. In addition, switcher’s savings for Pay TV declined from nearly $20/month to $11/month.
On the whole, internet customers are switching to services that likely provide more speed for a similar monthly expense. This is likely due to increased work-from-home orders due to COVID quarantines. Similarly, the smaller savings with Pay TV are due to people increasing, or keeping, entertainment options.
Interestingly, respondents aged 18-34 who switched paid 6 percent more for Internet in 2Q20 and 9 percent more in 1Q20. Altogether, this group paid 10 percent less in 2019. Switchers are increasing spend on necessities, most likely to improve their work from home experience. This demographic also had an increase in Pay TV spending when switching, again reflecting a need to be entertained while in quarantine.
In 2Q20 cell switchers aged 18-34 paid an average of $6 more for their new service than non-switchers, notably in lower-priced brands, while shrinking the price differences between switch/no-switch among the “Big 3.” TracFone switchers realized the greatest monthly savings, who increased their spending over $10/month when switching.
A more sobering stat is the fact that while 2Q20 cell switchers aged 18-34 paid more for their new service, overall spending has been trending downward since 2019.
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