Smartphone Era Ignites Need for Mobile Handset Protection

Frost & Sullivan market insight shows rising smartphone adoption increases the benefits of mobile handset protection plans

Aug 27, 2013, 07:53 ET from Frost & Sullivan

MOUNTAIN VIEW, Calif., Aug. 27, 2013 /PRNewswire/ -- The more consumers do on mobile phones, the less they can afford to be without them, and interruption in service is often considered unacceptable in today's connected world. Frost & Sullivan expects the number of smartphones in the United States will increase to more than 265 million by 2017, with a user's average monthly data consumption rapidly approaching 2 gigabytes per month.  A new Frost & Sullivan market insight, Mobile Handset Protection – A Win-Win for Carriers and Consumers, documents the way in which smartphones, and an increasingly connected world, are driving the value of mobile handset protection programs for both consumers and wireless carriers.    

The proliferation of smartphone usage, coupled with larger screen sizes, increases the likelihood of device loss, theft and damage. Purchasing a replacement device is rarely an attractive economical option for consumers – particularly with the more popular smartphones that can cost as much as $850 if the customer is not eligible for the subsidized price. Frost & Sullivan research shows that the more established handset protection programs provide a cost effective, easily-accessible service, which significantly reduces the expense and duration of disruption that otherwise occurs when a device is lost, stolen, damaged, or malfunctioning.

"We find both the consumer and service provider benefit from mobile handset protection plans," said Frost & Sullivan Mobile and Wireless Research Director Brent Iadarola.  "While handset protection programs cannot prevent a device incident, they can certainly ensure consumers get back to using their phones quickly and in a pain-free manner."

To view a brief, informative video that further explains the mobile handset protection market, visit:

For more information on the Frost & Sullivan market insight, Mobile Handset Protection – A Win-Win for Carriers and Consumers, please email Britni Myers, Corporate Communications, at, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

The increasing number of mobile device "incidents" emerged as a major challenge in the U.S. mobile communications market.  Churn reduction, customer satisfaction enhancement, and lower costs are critical factors for mobile operators to compete effectively in the ultra-competitive U.S. mobile communications business. Frost & Sullivan believes a proven way for mobile operators to advance these objectives is by aggressively offering and promoting handset protection programs to their customers. Mobile operators are encouraged to conduct a detailed analysis of the various handset protection specialists in order to select the right partner(s) for their device protection programs.

"Adoption of handset protection plans is likely to continue to increase in the United States," said Iadarola. "Handset protection programs drive significant value to carriers and consumers, which is why mobile operators should promote handset protection programs within the channels they control.   Strong support of Tier I mobile operators, and attractive offerings from direct-to-consumer providers are the two main reasons for the continued traction for handset protection plans." 

Mobile handset protection is no longer just about device replacement either – innovators are now offering comprehensive options to ensure an uninterrupted continuation of the mobile subscribers' digital lives, no matter the disruption scenario.  This includes restoring personal or vital business data in the event of a device incident, as well as providing break-fix and how-to technical support to ensure consumers derive optimum benefit from their mobile device. 

"As smartphone adoption accelerates, consumers are increasingly looking to their service providers to provide data protection – including restoration of their personal or business data in case of a device incident – and technical support," said Iadarola. "Thus, Frost & Sullivan anticipates integrated solutions that deliver comprehensive mobile protection will emerge as important value added services for mobile users."

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Britni Myers
Corporate Communications – North America

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