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US Hispanic Use of Telecommunications Services: Spending Patterns for
Wireless and Wireline Services, 2011-2016
a market research report
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Nearly one out of every three dollars spent on
residential telecommunications services in 2010 came from US ethnic
communities, so the spending power of the Hispanic-American, African
American, and Asian-American communities have become crucial to the
survival of telecommunications providers. This market report takes a
close look at the purchasing habits and telecom usage patterns of the
burgeoning Hispanic segment of the US population. In the last census,
Hispanics surpassed the African-American population as the largest
minority group in the US. US Hispanic purchasing power is now growing at
nearly twice the rate of the general population, fueled by continued
population growth and increasing Hispanic employment and income levels.
US Hispanics are heavy users of local, long-distance, international, and
wireless calling. Prepaid and post-paid services have also experienced
explosive growth in the US Hispanic market.
In this report, Insight examines spending by US Hispanics on local,
long-distance, wireless, and pre-paid services, and compares these
spending patterns to the general population and to other minority
segments including Asian Americans and African Americans.
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Report Excerpt
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On March 24, 2011, the US Census 2010 announced that
36.7 percent of this country’s residents were part of a group other than
non-Hispanic Whites—or to put it more simply, well over one-third of the
United States’ population is comprised of minorities. As of April 1, 2010,
the country’s minority population totaled 111.9 million, while the total US
population stood at 308.7 million.
In 2010, Hispanics remained the largest minority group,
comprising 50.5 million people or 16.3 percent of the total US population.
Over the past decade, Hispanics have been responsible for an ever increasing
share of consumer purchasing power. The relatively young Hispanic
population, with proportionally more individuals either entering the
workforce for the first time or moving up on their career ladders, argues
for additional gains in buying power. Hispanics’ spending patterns are
helping to determine the success or failure of many youth-oriented products
and services—including telecom and technology offers. It is this phenomenon
that our study will attempt to illuminate.
Insight
Research conducted a telephone survey of 500 Hispanic households in October
of 2007, October of 2008, and October of 2009 and most recently in February
of 2011. These Hispanic households were interviewed regarding their phone
expenditures. Interviews were conducted among a nationally representative
sample of Hispanic adults 18 years of age and older across the contiguous
US. Half of the sample consisted of males and half consisted of females.
Utilizing quotas and a statistical weighting scheme, the data was balanced
in proportion to the population of the US. Data was collected by gender,
age, country of origin, language spoken, income, education, region, markets
and acculturation. The results of our survey as well as other findings are
presented in the chapters that follow.
The number of Hispanics counted in the 2010 Census was
nearly one million more than the Bureau’s own estimates. Hispanics remain
the largest and youngest minority group in the US. Among children ages 17
and younger, the 17.1 million Hispanic youngsters represent nearly one in
four children in the US.
The Census makes it clear that Latinos are comprised of
two distinct segments: the native born who represent 70 percent of all US
Hispanics and the foreign born. Native born Latinos tend to be younger, more
educated, have higher incomes, tend to be unmarried with smaller households,
and primarily use English-language media. In contrast, foreign born
Latinos, tend to be older, less educated, have lower incomes, tend to be
married with larger households, and primarily use Spanish-language media.
The segments can be further enumerated by: first generation Latinos, where
Spanish culture and language are dominant; second generation, who tend to be
bilingual and bicultural; and finally to third generation plus, who are
US-dominant, both culturally and linguistically.
In 2010, all of these segments combined had an
estimated $1.10 trillion in purchasing power—and study after study has
concluded that they can be readily reached and engaged using wireless
communications technology.........
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Market Segmentation
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Decline of Wireline & Rise of Wireless
Wireless-Only US Households
Residential Access Landline Declines
Percent US Households with Wireless or Landline Phone Service Only
US Households with both a Landline and a Wireless Phone
Percentage of Adults in Wireless-only US Households by Race and Ethnicity
Percentage of Adults in Wireless-only US Households by Age
Percentage of Adults in Wireless-only US Households by Gender
Percentage of Adults in Wireless-only US Households by Household Structure
Percentage of adults in Wireless Only US Households by Education
Percentage of Adults in Wireless-only US Households by Home Own. Status
Percentage of Adults in Wireless-only US Households by Poverty Status
Percentage of Adults in Wireless-only US Households by Geographic Region
US VoIP Households
Estimated US Cellular Subscribers
Average Local Monthly US Cellular Bill
Hispanic Cell Phone Ownership
Increase in US Hispanic Cell Phone Ownership
US Hispanic Cell Phone Ownership by Country of Origin
US Hispanic Cell Phone Ownership by Language Preference
US Hispanic Cell Phone Ownership by Income
US Hispanic Cell Phone Ownership by Education
US Hispanic Cell Phone Ownership by Acculturation Level
Hispanic Pre-paid versus Post-Paid
Prepaid vs. Contract US Hispanic Cell Phones
US Hispanic Prepaid Cell Phone Use by Language Preference
US Hispanic Contract Cell Phone Use by Education
Hispanic Cell Phone Expenditures
US Hispanic Average Monthly Expenditures on Wireline and Wireless
US Hispanic Average Monthly Wireless Expenditures by Amount
Percent of US Hispanics Spending >$100 per Month on Wireless by Income
Percent of US Hispanics Spending >$100 per Month on Wireless by Education
US Hispanic Households that are Wireless Only
Hispanic Wireless versus Wireline Expenditures
US Hispanics Planning to Switch from Wireline to Wireless by Income
Estimated Distribution of Hispanic Landline and Wireless Use
Hispanic Use of Bundled Service
US Hispanic Use of Bundled Services
US Hispanic Use of Unbundled Services by Acculturation
US Hispanic Use of Bundled Services by Type of Provider
Telecom Expenditures
Total US Residential Wireline and Wireless Expenditures
Growth of US Residential Wireline and Wireless Expenditures
Ethnic Telecom Expenditures
Total Ethnic Residential Wireline and Wireless Telecom Expenditures
African-American
Hispanic
Asian American
Am, Ind, Esk. Aleut.
Growth of Ethnic Residential Wireline and Wireless Expenditures
African-American
Hispanic
Asian American
Am, Ind, Esk. Aleut.
Total Hispanic Residential Telecom Expenditures
Hispanic Residential Wireline
Hispanic Residential Wireless
Growth of African American Residential Telecom Expenditures
Wireline
Wireless
Growth of Asian American Residential Telecom Expenditures
Wireline
Wireless
Wireless Residential Expenditures by Race/Ethnicity
Hispanic
African-American
Asian-American
Growth of Wireless Residential Expenditures by Race/Ethnicity
Hispanic
African-American
Asian-American
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Table of Contents
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Chapter I
EXECUTIVE SUMMARY
1.1 Hispanics Fueling US Market Growth
1.2 Mobile Technology & US Hispanics
1.3 Importance of US Hispanics to Telecommunications
Chapter II
CURRENT MARKET ANALYSIS AND TRENDS
2.1 Overall US Population
2.2 Hispanics Are the Largest Ethnic Minority in the US
2.3 States with Highest Concentration of Hispanics
2.4 Hispanic Demographic Trends
2.5 The Purchasing Power of the US Hispanic Market
2.6 US Hispanic Market Trends
2.7 US Hispanic Households
2.8 US Median Hispanic Household Income
2.9 US Hispanic Educational Attainment
2.10 US Wireless Subscriber Growth
2.10.1 US Wireless Minutes
2.10.2 Total US Wireless Revenues
2.11 Cell Phone Usage in the US
2.12 US Cell Phone Usage and Race/Ethnicity
2.13 Importance of the Under 18 Market
Chapter III
ADDRESSING THE US HISPANIC CONSUMER
3.1 Marketing to US Latinos
3.2 Connecting with Latinos
3.2.1 The Wireless Store Experience
3.2.2 Shifts in Hispanic Marketing Paradigms
3.3 Hispanics and Mobile Technology
3.4 US Hispanics Are Important Mobile Marketing Targets
3.4.1 The Multicultural Face of Smartphones
3.4.2 Smartphones and Unlimited Data Plans
3.5 Marketing Trends in a New Multicultural Society
3.5.1 US Hispanic Cell Phone Ownership
3.6 Reaching Hispanics through Social Media
3.6.1 The Attractiveness of Hispanic Social Media Marketing
3.6.2 Targeting US Hispanics with Social Media Marketing
3.6.3 US Hispanics and Language in Social Media Marketing
3.6.4 US Hispanic Usage of Twitter and LinkedIn
3.6.5 Hispanic Usage of Niche Social Networks
3.7 Smartphone Penetration
3.7.1 Smartphones Projected to Outsell Traditional Mobile Phones
3.7.2 Wireless Customer Satisfaction
3.8 Smartphones Have Become a Media Delivery Platform
3.8.1 Minority Groups Buying Smartphones at Faster Rates
3.8.2 Smartphone Operating Systems
3.8.3 Smartphone Operating Systems by Race/Ethnicity
3.9 Teens and Mobile Phones
3.9.1 Texting: Teens’ Favorite Means of Communications
3.9.2 Why Teens Text
3.9.3 Calling is Still a Central Function for Teens
3.9.4 Types of Calling Plans
3.9.5 Smartphones and Teens
3.9.6 Cell Phones Help Bridge the Digital Divide
3.10 Generations
3.10.1 Technology, Appliances and Generations
3.10.2 Characteristics of Hispanic Millennials
3.11 Hispanics Are Technology Trend Setters
3.12 Overall Ad Spending
3.13 Hispanic Mobile Marketing
Chapter IV
HISPANIC COMMUNITY IS THE FOCUS OF CELLULAR, WIRELINE & SATELLITE OFFERS
4.1 Mobility Providers
4.1.1 AT&T
4.1.1.11 AT&T Commitment to the US Hispanic Market
4.3 Sprint Nextel
4.3.1 Sprint’s Multi-prong Prepaid Wireless Strategy 154
4.3.2 Sprint Nextel
4.4 T-Mobile USA
4.4.1 T-Mobile Hispanic Strategy
4.4 US Cellular
4.4.1 US Cellular Hispanic Community Involvement
4.5 Verizon Wireless
4.5.1 Verizon’s Hispanic Marketing Campaigns
4.5.3 AT&T iPhone 4 Owners vs. Verizon iPhone 4 Owners
4.6 Wal-Mart
4.2 Wireline Providers
4.2.1 AT&T U-verse TV
4.2.2 Cablevision
4.2.3 CenturyLink/Qwest
4.2.4 Charter Communications
4.2.5 Comcast Corporation
4.2.6 Cox Communications
4.2.7 Time Warner Cable
4.2.8 Verizon FiOS TV
4.3 Satellite TV Providers
4.3.1 Dish TV
4.3.2 DirecTV
Chapter V
FUTURE PRODUCTS AND SERVICE TRENDS
5.1 Wireless Trends
5.2 Mobile Devices Overtake PCs
5.3 Smartphone Data Usage Climbing
5.3.1 Tablet Usage on the Rise
5.3.2 Boomers Coming of Age
5.4 Rise of Mobile Marketing
5.4.1 Online Privacy Legislation
5.4.2 Google AdWords Interest-Based Advertising
5.4.3 US Mobile Local Ad Revenues to Grow
5.4.4 Hispanics Leading Geo-Social Usage
5.4.5 Google Maps for Mobiles
5.5 The Future of TV Content
5.5.1 Growing Number of Americans Watching Web TV
5.5.2 Young Most Likely to Watch Web TV
5.5.3 Education Boosts Online TV Viewing
5.5.4 More Than Half of Cable Viewers Have Interest in Giving Up Cable TV
5.6 Netflix A Growing Threat to TV
5.6.1 Netflix, Showtime and Starz
5.6.2 Netflix and HBO Go
5.7 Social Media and TV
5.8 TV Still Dominant Video Device
5.9 Today’s Teen Grads
5.10 FCC Actions Impacting Wireless and Wireline Broadband
5.11 Hispanic’s and Technology
5.12 Survey of Hispanic Cell Phone Use
5.12.1 Hispanic Cell Phone Ownership
5.12.2 Hispanic Cell Phone Use: Contract Versus Prepaid
5.12.3 Hispanic Cell Phone Expenditures
5.12.4 Hispanic Wireless Market Attractiveness
5.12.5 Hispanic Use of Prepaid Phone Cards
5.12.6 Hispanic Use of Bundled Services
5.13 Telecom Expenditures
5.14 Ethnic Telecom Expenditures
5.14.1 Comparison of Ethnic Telecom Expenditures
5.15 The Importance of Hispanic Marketing
Table of Figures
Chapter I
I-1 US Hispanic Cell Phone Ownership by Country of Origin
I-2 Millennial Profile by Race/Ethnicity
I-3 Total US Residential Wireline and Wireless Expenditures
I-4 Total US Ethnic Residential Wireline and Wireless Expenditures
Chapter II
II-1 Total US Population Caucasian vs. Non-Caucasian
II-2 Percent of The Non-Caucasian Pop. by Race/Ethnicity within the Entire
US Population
II-3 Growth of the Three Largest US Minority Groups
II-4 States with Highest Differences between Census Counts and Population
Estimates
II-5 Regional Population Distribution of US Hispanics
II-6 US Hispanic Purchasing Power, 2000-2017
II-7 2010 Census Hispanic Origin Distribution
II-8 Percent of Total and Hispanic Households by Size
II-9 US Hispanic Households by Country of Origin
II-10 US Median Household Incomes
II-11 Total US Wireless Subscribership Growth
II-12 US Wireless Average Minutes Per Local Call
II-13 Revenue Split between Non-Voice and Voice Wireless Revenue
II-14 Phone Usage Habits, Women versus Men
II-15 Monthly Voice and Text Usage by Age
II-16 Monthly Voice and Text Usage by Race/Ethnicity
II-17 Monthly Voice and Text Usage by Race/Ethnicity
Chapter III
III-1 JD Power and Associates 2011 Wireless Retail Sales Satisfaction Study
III-2 Hispanic versus Non-Hispanic Mobile Usage By Application Type
III-3 Hispanic Home Broadband Access
III-4 Smartphone Growth Rates of US Hispanic Households vs.Non-Hispanic
Households
III-5 US Smartphone Penetration Rates by Race/Ethnicity
III-6 Penetration of Smartphones by Race/Ethnicity
III-7 Unlimited Data Plan Ownership by Race/Ethnicity
III-8 Percentage of US Adult Households with Only Wireless Telephone Service
by Ethnic Group
III-9 Percentage of Bloggers by Race/Ethnicity
III-10 Percentage by Race/Ethnicity with a Web Site
III-11 US Hispanic Cell Phone Ownership Based on Nativity
III-12 US Hispanic Second Generation Cell Phone Ownership
III-13 US Hispanic Cell Phone Ownership by Acculturation Levels
III-14 US Hispanic Adult Cell Phone Ownership by Age
III-15 US Hispanic Cell Phone Ownership by Educational Attainment
III-16 US Hispanic Cell Phone Ownership by Income
III-17 Importance of Social Media Programs in the General Market vs. the
Hispanic Market
III-18 Social Media Tools Used in Reaching the General vs. Hispanic Markets
III-19 Hispanic vs. General Consumers Use New Mobile Devices
III-20 US Hispanic Mobile Phone Users by Age
III-21 Racial/Ethnic Composition of Twitter
III-22 Changes for All Multicultural Media
III-23 Changes for Newer Multicultural Media
III-24 Terra.com Magazine Ad Targets, Bilingual, Bicultural, Tech-Savvy
Latinas
III-25 US Smartphone Penetration and Projections
III-26 ACSI Wireless Customer Satisfaction
III-27 Top Mobile Activities in the US
III-28 Cell Phone Activities by Race/Ethnicity
III-29 Number of SMS Sent/Received per Month by Age Groupings
III-30 Smartphone Penetration by Race/Ethnicity
III-31 Mobile Operating System Market Share
III-32 Mobile Operating System Market Share – Recent Acquirers
III-33 Operating Share by Race/Ethnicity
III-34 Parents vs. Teens Cell Phone Ownership
III-35 US Females with Children Under 18 Owning a Smartphone
III-36 Percentage of Teen Age Group Who Have a Cell Phone 2004-2009
III-37 Percentage of Teens Texting Based on Number of Texts per Day
III-38 Typical Number of Texts per Day by Age/Sex
III-39 Why Teens Text and Frequency
III-40 Typical Number of Voice Calls per Day by Age Group
III-41 Teen Cell Phone Users by Texting Plan Type
III-42 Popular Features Use by Teen Cell Phone Users
III-43 Teens by Race/Ethnicity Using Cell Phones to Access The Internet
III-44 Why Teens Have a Cell Phone
III-45 Population Profile – US Consumers by Age
III-46 Millennial Profile by Race/Ethnicity
III-47 Race/Ethnicity of the Four Generational Cohort Groups
III-48 Age Group Perception of Dependence by Technology Type
Cable Service Flat Screens (Percent)
III-49 Age Group Perception of Non-Dependence by Technology Type
(Cell Phone, PC, Internet Access)
III-50 Necessity of Landline Phone versus Cell Phone by Age Group
III-51 Hispanic vs. Non-Hispanic Currently Owned Select Consumer Electronics
III-52 Hispanic vs. Non-Hispanic Plan to Purchase Select Consumer
Electronics Next Year
III-53 Hispanic Receptivity to Eleven Types of Digital Media
III-54 Attitudes toward Advertising, Hispanic versus Non-Hispanic Internet
Users
III-55 TV Viewing Habits of Adult US Hispanics 18+
III-56 Prime Time Advertising Reach of Hispanics Ages 18-49
III-57 Advertising Investment in Multicultural Marketing
III-58 Ad That Aims to Capture Latina Smartphone Shopper
Chapter IV
IV-1 AT&T Q1 Revenue Sources 2010 vs. 2011
IV-2 Number of Wireless Subscribers by Carriers
IV-3 AT&T Promotion for Hispanic GoPhone Minutes
IV-4 AT&T’s Natalia Jimenez Ad Highlights Internet Portals
IV-5 Sprint’s Postpaid versus Prepaid Mix 2008 vs. 2010
IV-6 Sprint’s Four Prepaid Wireless Brands
IV-7 Boost Mobile TV Ad
IV-8 Sprint’s “Everything Data’ Plan Running in Print Media
IV-9 Sprint's Print Ad promotion of Copa Oro 2011
IV-10 Sprint's Web Site for Promotion of Copa Oro 2011
IV-11 T-Mobile Father’s Day Free Phone Offer
IV-12 T-Mobile’s “El Llamado del Fútbol,” Plays Off the World Cup
IV-13 T-Mobile “Estamos Juntos” Storefronts in Hispanic Neighborhoods
IV-14 Motorola Droid X Spanish Print Ad
IV-15 Droid Incredible de HTC
IV-16 Customer Satisfaction Ratings: iPhone 4 AT&T vs. Verizon
IV-17 AT&T vs. Verizon: Percentage of Dropped Calls
IV-18 iPhone 4 Percentage of Dropped Calls: AT&T vs. Verizon
IV-19 Future iPhone 4 Buyers Carrier Preference
IV-20 Wal-Mart’s Family Mobile Print Ad
IV-21 Percent of Americans Who Say TV is A Necessity
IV-22 Cablevision Spanish Direct Mailer
IV-23 Sofia Vergara Comcast Xfinity Spokesperson
IV-24 Cox’s New Digis Icon
IV-25 Time Warner Cable’s Social Network Print Ad
IV-26 Video Subscribers as of March 2011
IV-27 TWC Street Event Outside of a Retail Location
IV-28 Dish Network Packages Under $50/Month
IV-29 DirecTV Direct Mail Promoting Basic Packages
IV-30 DirecTV’s 2011 Spokesperson Lucero
Chapter V
V-1 2011 Sales Revenue of PC and Non-PC Devices
V-2 Location-Based Usage by Race/Ethnicity
V-3 Web TV Viewing by Age
V-4 Web TV Viewing by Educations Levels
V-5 Online Users Engaging with TV Shows
V-6 Video Watching Device Preference
V-7 Increase in US Hispanic Cell Phone Ownership
V-8 US Hispanic Cell Phone Ownership by Country of Origin
V-9 US Hispanic Cell Phone Ownership by Language Preference
V-10 US Hispanic Cell Phone Ownership by Income
V-11 US Hispanic Cell Phone Ownership by Education
V-12 US Hispanic Cell Phone Ownership by Acculturation Leve
V-13 Prepaid vs. Contract US Hispanic Cell Phones
V-14 US Hispanic Prepaid Cell Phone Use by Language Preference
V-15 US Hispanic Contract Cell Phone Use by Education
V-16 US Hispanic Average Monthly Expenditures on Wireline and Wireless
V-17 US Hispanic Average Monthly Wireless Expenditures by Amount
V-18 Percent of US Hispanics Spending >$100 per Month on Wireless by Income
V-19 Percent of US Hispanics Spending >$100 per Month on Wireless by
Education
V-20 Percent of Hispanic Wireless Only Households
V-21 US Hispanic Use of Bundled Services
V-22 US Hispanic Use of Unbundled Services by Acculturation
V-23 US Hispanic Use of Unbundled Services by Income
V-24 US Hispanic Use of Bundled Services by Type of Provide
V-25 US Hispanic Use of Satellite Company Bundled Services by Acculturation
V-26 Growth of US Residential Wireline and Wireless Expenditures
V-27 Growth of US Ethnic Residential Wireline and Wireless Expenditures
V-28 Growth of US Hispanic Residential Wireline and Wireless Expenditures,
V-29 Growth of African-American Residential Wireline and Wireless
Expenditures
V-30 Growth of Asian-American Residential Wireline and Wireless Expenditures
V-31 Growth of Residential Wireline Expenditures by Race/Ethnicity
V-32 Growth of Residential Wireless Expenditures by Race/Ethnicity
Table of Tables
Chapter I
I-1 Teen Cell Phone Owners Most Likely to Go Online
Chapter II
II-1 US Population Growth by Race/Ethnicity
II-2 States with Largest Percentage Hispanic Population Growth
II-3 2010 Census Race, Hispanic Origin, and Minority Distribution: Under Age
18
II-4 Median Age in Years, by Sex, Race and Ethnicity: 2009
II-5 Change in the Hispanic Population by Nativity: 2000-2009
II-6 Change in the Hispanic Population by Nativity: 2000-2009
II-7 Hispanic Segmentation Based on Acculturation
II-8 US Hispanic Households: 2008-2009
II-9 Percent Latin American Immigrants Age 25 and Older without a High
School Diploma and without a Bachelor’s Degree or Higher, by Age at
Immigration
II-10 Percent Educational Attainment of First and Second Generation Mexican
Americans
Chapter III
III-1 Most Popular Social Websites for US Hispanics
III-2 US Hispanics on Twitter and LinkedIn
III-3 US Hispanics on Tumblr and Badoo
III-4 Top Smartphone Platforms 1Q 2011
III-5 Demographics of Teen Cell Phone Users
III-6 Demographics of Teens Who Text
III-7 Most Popular Plan/Payment Combinations
III-8 Teen Cell Phone Owners Most Likely to Go Online
III-9 Percent Change in Measured Ad Spending
III-10 Top Ten Advertisers in 2010
III-11 Top Ten Advertisers in 2010
Chapter IV
IV-1 AT&T Wireless Phone/Smartphone Plans
IV-2 Key Differences Between the iPad and the iPad 2
IV-3 Comcast Xfinity Triple Play Bundles
Chapter V
V-1 Most Popular Sites by Age Group
V-2 Adults Who Watched a TV Show on The Internet
V-3 Would Stop Paying For Cable If…
V-4 Hispanic Population Growth, 2011-2016
V-5 Total US Residential Wireline and Wireless Expenditures, 2011-2016
V-6 Total US Ethnic Residential Wireline and Wireless Expenditures,
2011-2016
V-7 Total US Hispanic Residential and Wireless Expenditures, 2011-2016 334
V-8 Total African-American Residential Wireline and Wireless Expenditures
V-9 Total Asian-American Residential Wireline and Wireless Expenditures
V-10 Residential Wireline Expenditures by Race/Ethnicity
V-11 Residential Wireless Expenditures by Race/Ethnicity
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