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US Hispanic Use of Telecom Services

2004-2009

a market research report

Report Excerpt

Market Segmentation

Table of Contents

Press Release

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This market report takes a close look at the purchase 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, catching much of corporate America off guard. Throughout the 1990s, Hispanics solidified their position as the largest minority in states such as California, Texas, New York, Florida, and New Jersey. Hispanic populations are now appearing in significant numbers in states that have not previously exhibited large ethnic enclaves—Georgia, North Carolina, and Tennessee.

This geographic shift means that telecom marketing executives can no longer target a few key states to capitalize on all Hispanic market opportunities. US Hispanics are heavy users of beepers and pagers, local, long-distance, and international calls, and spend considerably more than the general market on value-added services such as call waiting and caller ID. Prepaid services have also experienced explosive growth in the US Hispanic market.

In this report, Insight examines spending by US Hispanics on local, long distance, ISP, wireless and pre-paid service, 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

    One out of every three dollars spent on telecommunications services in 2009 will come from US ethic communities, so the spending power of the Hispanic American, African American, and Asian American communities will become crucial to the survival of telecommunications providers over the next five years.

    As of July 1, 2003 the total US population was estimated at 290.8 million.  US Hispanics accounted for 40.5 million (with an additional 3.9 million in Puerto Rico), African Americans 34.7 million, and the Asian American population reached 12.2 million.  Today, nearly one in three Americans (31.4 percent) belongs to one of these three major minority segments.  

    The US Latino community is growing so much and at such a rapid pace that Hispanics are no longer just the fastest growing minority—they are the fastest growing sector in the entire US population.

    Hispanics represent a red hot demographic for many companies, a fact well understood by the telcos, who have historically led in advertising to the Hispanic market.  Between 1990 and 2003, the Hispanic market has grown...

    Click here for the complete Executive Summary.


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    Market Segmentation

     

    Total US Residential Telecom Expenditures, 2004-2009
    - Residential Wireline
    - Local
    - Long Distance
    - ISP
    - Residential Wireless

    Growth of US Residential Wireline/Wireless Telecom Expenditures 2004-2009
    -
    Local Wireline
    - Wireless
    - Long Distance Wireline
    - ISP Wireline

    Total Ethnic Residential Wireline and Wireless Telecom Expenditures 2004-2009
    -
    Total Residential
    - Ethnic Residential
    - African-American
    - Hispanic
    - Asian American
    - Native American

    Growth of US Residential Wireline/Wireless Telecom Expenditures by Race/Ethnicity 2004-2009
    - African-American
    - Hispanic
    - Asian American
    - Native American

    Total Hispanic Residential Wireline/Wireless Telecom Expenditures 2004-2009
    -
    Hispanic Residential Wireline
    - Local
    - Long Distance
    ISP
    - Hispanic Residential Wireless

    Growth of Hispanic Residential Wireline/Wireless Telecom Expenditures 2004-2009
    -
    Local
    - Long Distance
    - Wireless
    - ISP

    Total African-American Residential Wireline/Wireless Telecom Expenditures 2004-2009
    -
    African-American Residential Wireline
    - Local
    - Long Distance
    - ISP
    - African-American Residential Wireless

    Growth of African American Residential Wireline/Wireless Telecom Expenditures 2004-2009
    -
    Local
    - Long Distance
    - Wireless
    - ISP

    Total Asian-American Residential Wireline/Wireless Telecom Expenditures 2004-2009
    - Asian-American Residential Wireline
    - Local
    - Long Distance
    - ISP
    - Asian-American Residential Wireless

    Growth of Asian American Residential Wireline/Wireless Telecom Expenditures 2004-2009
    - Local
    - Long Distance
    - Wireless
    - ISP

    Local Residential Expenditures by Race/Ethnicity, 2004-2009
    - Hispanic
    - African-American
    - Asian-American

    Growth of Local Residential Expenditures by Race/Ethnicity, 2004-2009
    - Hispanic
    - African-American
    - Asian-American

    Long Distance Residential Expenditures by Race/Ethnicity, 2004-2009
    - Hispanic
    - African-American
    - Asian-American

    Growth of Long Distance Residential Expenditures by Race/Ethnicity, 2004-2009
    - Hispanic
    - African-American
    - Asian-American

    ISP Residential Expenditures by Race/Ethnicity, 2004-2009
    - Hispanic
    - African-American
    - Asian-American

    Growth of ISP Residential Expenditures by Race/Ethnicity, 2004-2009
    - Hispanic
    - African-American
    - Asian-American

    Wireless Residential Expenditures by Race/Ethnicity, 2004-2009
    - Hispanic
    - African-American
    - Asian-American

    Growth of Wireless Residential Expenditures by Race/Ethnicity, 2004-2009
    - Hispanic
    - African-American
    - Asian-American
     


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    Table of Contents

     
    Chapter I
    EXECUTIVE SUMMARY

    1.1   The US Multicultural Market & Telecommunications
    1.2    The Impact of Hispanic Purchasing Power on Telecommunications
    1.3    Hispanic Bi-Culturalism
    1.4    Serving the Hispanic Market
    1.5   Telecom Needs of the US Hispanic Market
    1.6    Ethnic Telecom Market Projections
     
    Chapter II
    CURRENT MARKET ANALYSIS AND TRENDS

    2.1   US Ethnic Consumer Market
    2.2   Defining the US Hispanic Market
    2.2.1     Ethnic Group Definitions
    2.3    The US Hispanic Market Opportunity
    2.4    Marketing In-Language and In-Culture
    2.5    Geographic Shifts and Migration
    2.6    US Hispanic Purchasing Power
    2.7    Immigrants and Native-Born Hispanics
    2.8    Assimilation and Acculturation
    2.9    Number of US Hispanic Households
    2.10  US Hispanic Educational Characteristics
    2.11  Generation Y
    2.11.1     Latino Generation Y
    2.11.2     Asian American Generation Y
    2.11.3     Urban Generation Y
     
    Chapter III
    ADDRESSING THE US HISPANIC CONSUMER

    3.1   Serving the US Hispanic Market
    3.2   Hispanic Family and Household Characteristics
    3.3   Telecom Needs of the US Hispanic Market
    3.4   Use of Spanish Language in Marketing Communications
    3.5   Telecom Spending on Hispanic Advertising
    3.6   Marketing Strategies that Appeal to the Hispanic Market
    3.7   Hispanic Immigrants and Remittances
     
    Chapter IV
    TELECOM OFFERINGS AND PROGRAMS

    4.1    Ethnic Spending on Telecom Services
    4.2    Monthly Technology Spending
    4.3    Long Distance Carriers
    4.3.1     Americatel
    4.3.2     AT&T
    4.3.3     BellSouth Corporation
    4.3.4     IDT
    4.3.5     MCI
    4.3.6     Qwest
    4.3.7     SBC
    4.3.8     Sprint
    4.3.9     Time Warner Cable & Cox Cable
    4.3.10   Vonage
    4.3.11   Verizon 
    4.4    Cellular Carriers
    4.4.1      AT&T Wireless
    4.4.2      Cingular
    4.4.3      Nextel
    4.4.4      Sprint PCS
    4.4.5      T-Mobile
    4.4.6      Verizon Wireless
    4.5      Prepaid Services
    4.5.1      The Prepaid Wireless Market
    4.5.2       Prepaid Cards 
    4.5.3       Prepaid Dial Tone
    4.5.4       Prepaid Internet
    4.6    Internet Service Providers
    4.6.1       AOL
    4.6.2       Univisión.com
    4.6.3       Terra.com
    4.6.4       Yahoo! En Español
    4.6.5       YupiMSN.com
     
    Chapter V
    MARKET FORECAST

    5.1      Census 2003:  Defining the Ethnic Market
    5.1.1            Hispanic Origin
    5.2      Growth and Purchasing Power of the Hispanic Market
    5.3      Telecom Expenditures Continue to Climb
    5.3.1            Ethnic Telecom Expenditures
    5.3.2            Comparison of Ethnic Telecom Expenditures
    5.4      Importance of Ethnic Marketing in the New Millennium

    Table of Figures
    Chapter I

    I-1   Ethnic as a Percentage of Total Residential Wireline, Wireless, and ISP Telecom Expenditures, 2004 and 2009 ($Billions)
    Chapter II
    II-1   US Population by Race/Ethnicity, 2003
    II-2  Question on Hispanic Origin from Census 2000-2003
    II-3   Hispanics by Origin, 2002
    II-4   Hispanics as a Percent of US Population, 2004-2040
    II-5 Asian-American In-Language Preference, 2003
    II-6  AT&T’s Lucky Dog Campaign Adapted to Hispanic and Asian Markets, 1998
    II-7   US Historical Hispanic Purchasing Power, 1999-2003 ($Billions)
    II-8 US Hispanic Purchasing Power, 2003-2010 ($Billions)
    II-9   US Hispanic Generational Diversity, 2000-2020 (People in Millions)
    II-10   Hispanic Cultural Matrix
    II-11   Breakdown of Hispanic Households by Income Level, 1990 and 2000
    II-12   Average Total Hispanic Expenditure per Household by Ethnicity, 2002
    II-13   Median US household Income by Race/Ethnicity, 2003
    II-14   Population with at Least a High School Education, 2002
    II-15   Detailed Hispanic Population by Origin with at Least a High School Education, 2002
    II-16   Population by Hispanic Origin and Educational Attainment, 2002
    II-17   Nokia Advertisement
    II-18   Ethnic Youth under Age 18, 2000-2010 (Millions of Youngsters)
    II-19   Majority of 21-Year-Olds by Ethnicity, 2003
    II-20   Majority of 21-Year-Olds by Geographic Region, 2003
     
    Chapter III

    III-1   Family Households with Five or More People: Detailed Hispanic Origin, 2002
    III-2  Primary Language Preference of Latinos, 2002
    III-3   Accesorios para el teléfono Nokia 3560
     
    Chapter IV

    IV-1   Dias 123 del 1010-123 de Americatel
    IV-2   Verizon Wireless Advertisement
    IV-3   AT&T Wireless Advertisement
     
    Chapter V
    V-1  Distribution of US Hispanic Population by Type, 2003
    V-2  Percentage of US Hispanics vs. Non-Hispanics in Work Force, 2003
    V-3  US Residential Wireline, Wireless, and ISP Telecom Expenditures, 2004-2009
    ($Billions)
    V-5  Total Ethnic Residential Wireline, Wireless, and ISP Telecom Expenditures, 2004-2009 ($Billions)
    V-4  Growth of US Residential Wireline, Wireless, and ISP Telecom Expenditures by Race/Ethnicity, 2004-2009 ($Billions)
    V-5  Growth of Hispanic Residential Wireline, Wireless, and ISP Telecom Expenditures, 2004-2009 ($Billions)
    V-6  Growth of African-American Residential Wireline, Wireless, and ISP Telecom Expenditures, 2004-2009 ($Billions)
    V-7  Growth of Asian-American Residential Wireline, Wireless, and ISP Telecom Expenditures, 2004-2009 ($Billions)
    V-8  Local/LD Residential Expenditures by Race/Ethnicity, 2004-2009 ($Billions)
    V-9  ISP Residential Expenditures by Race/Ethnicity, 2004-2009 ($Billions)
    V-10 Growth of Wireless Residential Expenditures by Race/Ethnicity, 2004-2009 ($Billions)
     
    Table of Tables
     Chapter II

    II-1  Largest Hispanic Purchasing Power Markets, 2003 ($Billions)
    II-2 Acculturation Rate, 2003
    II-3  Hispanic Segments, 1998
    II-4  Income and Occupation by Dominant Language, 2002
    II-5  Wireless Services Usage among 21 Year Olds, 2002
    II-6  Percent Change in Major Ethnic Groups under Age 18, 2000-2010
     
    Chapter III
    III-1 Language Latinos Speak at Home by Income Level, 2003
    III-2 Language Latinos Speak Outside of Home by Income Level, 2003
    III-3 Top Ten US Hispanic DMA’s
     
    Chapter IV

    IV-1 Monthly Technology Spending by Select Demographic Segments, 2002
    IV-2 Telecom Related Spending By Race/Ethnicity, 2002
    IV-3 Technology Adoption and Monthly Usage
    IV-4 SBC Mexico Calling Plans, 2003
    IV-5 Total Number of Subscribers for the Top Wireless Companies, 2003
     
    Chapter V

    V-1  Total US Population Reporting One Race or Two or More Races Based on Census 2002 Population Estimates
    V-2  Detailed Breakdown of US Population Reporting One Race in Census 2002
    V-3 US Hispanic Population by Type from Census 2003
    V-4  Total Residential Telecom Expenditures, 2004-2009 ($Billions)
    V-6  Total Hispanic Residential Wireline, Wireless, and ISP Telecom Expenditures, 2004-2009 ($Billions)
    V-7  Total African-American Residential Wireline, Wireless, and ISP Telecom Expenditures, 2004-2009 ($Billions)
    V-8  Total Asian-American Residential Wireline, Wireless, and ISP Telecom Expenditures, 2004-2009 ($Billions)
    V-9  Local/Long Distance Residential Expenditures by Race/Ethnicity, 2004-2009 ($Billions)
    V-10 ISP Residential Expenditures by Race/Ethnicity, 2004-2009 ($Billions)
    V-11 Wireless Residential Expenditures by Race/Ethnicity, 2004-2009 ($Billions)


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