Wireless Carriers Are Winning 5G Customers for the Wrong Reason

Investment bank Morgan Stanley published the results of its ninth annual broadband and wireless survey on Oct 18. Among the findings were that only 4% of respondents cited “innovative technology” such as 5G as an important factor in their choice of service. That number was unchanged from the previous year’s survey—despite an unremitting onslaught of marketing from wireless carriers and device makers for the next-gen wireless standard. Customers appear to be driven more by old-fashion promotions than cutting-edge technology. AT&T, Verizon and T-Mobile offered heavy discounts in 2020 for iPhone 12 models paired with new 5G plans. That appears to have continued with the newest crop; wireless analyst Craig Moffett of MoffettNathanson notes that “promotions tied to premium unlimited plans have gotten richer” with the introduction of the iPhone 13 family in 2021. Indeed, the Morgan Stanley survey found price to be the most compelling driver in choice of a wireless plan, with 44% of respondents citing it as their top factor. That leaves 5G itself as an uncertain selling point—but one with some big bills attached.