Carriers are increasingly making moves to win older Americans This is a growing demographic group, and carriers have made multiple moves in 2022 to gain these customers. It has also led one national carrier to sue another national carrier.
It’s a growing demographic. The number of Americans aged 65 or older is expected to grow from 54.1 million in 2019 to 80.8 million in 2040 and to 97.7 million in 2060, according to the U.S. Census Bureau.
T-Mobile hits Verizon and AT&T for limiting 55+ unlimited plan availability
“AT&T and Verizon Ban 92% of Seniors From Wireless Discounts” was the catchy headline of a T-Mobile press release in August. T-Mobile has discounted unlimited plans for customers 55 and older. For years, discounts on unlimited plans from Verizon and AT&T for all customers 55 and older have only been available to residents of Florida.
The "Un-carrier" has a Carrier Callout website, where it slams Verizon and AT&T for various issues. In addition T-Mobile also criticized Verizon and AT&T for price and fee hikes during the summer. T-Mobile also opened a “pop-up shop” near Sun City, Arizona, which is host to one of America’s largest retirement communities.
RELATED: Verizon fee increases coming in June
Just a few days after T-Mobile’s announcement in August AT&T filed a lawsuit against T-Mobile, stating that T-Mobile’s press release was misleading. The carrier pointed out that it offers various discounts to AARP members. These discounts are clear on AT&T’s website. The AARP is the largest organization for older Americans, but it is not the only one and many older Americans are not AARP members.
Consumer Cellular hits high gear
Consumer Cellular is an MVNO that has more than four million subscribers and is focused on serving older Americans. The carrier has a long history of strong sales via Target, but BestMVNO recently reported that Consumer Cellular is now sold via 474 Walmart locations, and Wave7 Research expects this number to grow to more than 600 this fall.
Consumer Cellular is opening some stores, as Wave7 Research has reported. Expectations are that the number will be small and that the openings will be targeted, with stores tending to be close to large retirement communities. In September, Consumer Cellular on LinkedIn even posted a picture of one such store.
Early this year, Consumer Cellular hired veteran actor Ted Danson to appear in TV ads where Danson rides to the rescue of older Americans who are being pitched to buy more than they need or are facing subpar customer service from some other carrier. In this “Reliably Yours: Robo Call” TV ad, Danson gives a hug to a man who is flummoxed about customer service from his carrier. “You’ll talk to a real person, every time,” Danson reassures. The man asks, “As nice as you?” Danson says that Consumer Cellular care reps are “almost” as nice as he is.
Lively launches new branding ad
Lively is an MVNO operated by Best Buy that had more than 900,000 subscribers as of 2019. While Consumer Cellular ads are focused on older Americans: its ads often show active seniors enjoying activities such as biking and hiking. Lively, on the other hand, places heavy emphasis on emergency response amid health emergencies. Much of Lively’s marketing is geared toward the daughters and sons of older Americans. Lively has high visibility and significant display space at Best Buy.
Lively in September launched this new “Health and Safety Services” TV ad. It is a branding ad, not focused on offers or promotions. It is an upbeat ad, featuring “Go Where You Wanna Go,” a 1965 hit by the Mamas & Papas.
Verizon pitches 55+ customers “under the table”
As the carrier with the largest number of subscribers, Verizon may not be eager to aggressively pitch discounts for seniors. However, there are some “under the table” efforts. Wave7 Research reported this week that a Verizon single line customer received a text message offering a $10/month discount on unlimited plans. “As a valued customer you’re eligible for an exclusive loyalty discount,” per the text message. The account holder was more than 55 years of age. A contact indicated that he was aware of a similar pitch made to a Verizon customer in Illinois in May. The scale of this effort is unclear, but it is clear that Verizon is using some targeted efforts to retain older customers.
Trend for 2022 – battle for older customers
In December, maybe I’ll write a column about the top trends for wireless competition in 2022. If I do, the battle for older customers will be on the list. Whether it’s T-Mobile’s “Carrier Callout” effort, AT&T’s lawsuit, Consumer Cellular’s move into a minority of Walmarts and the launch of its first stores, Lively’s new marketing efforts, or Verizon’s quiet discounts, there is a lot to process.
In 2060, the number of Americans 65 or older will nearly hit 100 million, compared to 54.1 million just three years ago. This is a key demographic for carrier success.
Good customer care from real people is very important for winning the business of older Americans. If that care involves a reassuring hug from Ted Danson, then so be it, but that’s a pretty high bar.
Jeff Moore is Principal of Wave7 Research, a wireless research firm that covers U.S. postpaid, prepaid, and smartphone competition. Jeff has 25 years of telecom industry experience, including 13 years of competitive intelligence work for Sprint. Follow him on Twitter @wave7jeff.
Industry Voices are opinion columns written by outside contributors—often industry experts or analysts—who are invited to the conversation by FierceWireless staff. They do not necessarily represent the opinions of FierceWireless.