With their mass-market approach, US wireless carriers are missing a lucrative opportunity to tap into Generation M: the post-1970 generation caught between Generation X and Generation Y that is loosely characterized by various attributes such as media, marketing, millennium, multitasking and a focus on “me, myself and I.” To this list, Yankee Group adds one more defining “M”—mobility. Consumers in the 18 to 34 age range have grown up with mobile connectivity. The younger end of the spectrum is the first group of consumers for whom mobile devices will be their primary access point not only to communications, but also to information and entertainment. However, traditional mobile network operators (MNOs) are slow to realize that these consumers’ needs differ from those of other mobile phone users.
Why do carriers need to understand Generation M? It’s really quite simple. These consumers are among the most attractive mobile subscribers carriers will find. They talk a lot. They are interested in using more mobile data services. They see their phone as a status symbol. And last, but certainly not least, they have money to burn. Yankee Group estimates Generation M will spend roughly $42 billion on wireless voice and data services this year—30% of the total US wireless market revenue.
One challenge to the mobile status quo is that Generation M wants an open network that lets them personalize and customize the content on their handsets. They want what they want, when and wherever they choose. Movement toward market disintermediation is inevitable, and operators need to embrace it, or they will lose out.
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