The State of the Telecom Retail Market

Artificial intelligence (AI) is no longer a futuristic concept; it’s a present-day reality that is reshaping wireless retail. It’s also a tool that can elevate your customer experience and back-office operations, and offers a wealth of opportunity.

In his keynote speech on AI, Shelly Palmer — tech consultant, author, AI expert, and Professor of Advanced Media at Syracuse University — told the SummitX attendees, ​“You should understand the speed at which AI is advancing, and what is on the way. Before AI, we could do five-second tasks in five seconds. Last year, using AI, we could do five-minute tasks in five seconds. Today, we can do five-hour tasks in five seconds. We’re soon getting to the point where we can do five-day tasks in five seconds, and we’re going to get to five months’ worth of tasks in five seconds.” 

John Lund, AI expert and CEO of Entresmart, took the audience at SummitX through how this technology can vastly increase operational efficiency and support new business strategies within wireless retail specifically. He said, ​“The industry is evolving fast, and with AI on your side, you can elevate your customer experience, streamline operations, and build a winning team.” 

AI is transforming several different areas of the wireless retail sector:

Customer Lifecycle Management: In an era where capturing consumer attention is paramount, AI offers powerful tools for personalized marketing and optimized customer experiences. Iqbal Habib, Head of Data and Analytics at iQmetrix, said at SummitX, ​“We are at a pivotal moment in marketing… Advancements in data and AI have transformed the way we capture attention.” AI-driven customer lifecycle technology enables retailers to tailor their messaging, promotions, and engagement strategies based on customer preferences and behaviors, fostering stronger relationships and loyalty, and increasing revenue.

Product Lifecycle Management and Demand Forecasting: AI can address the constant retail challenge of accurately forecasting product inventory needs. Trish Sale, iQmetrix’s Vice President of Product, highlighted this at SummitX, saying to the Industry Address audience, ​“Overstocking and understocking are major issues that affect telecom retailers. I don’t need to tell you that — you live it every day”. AI-powered solutions can analyze vast amounts of data from the supply chain to predict product demand with greater accuracy, ensuring retailers have the right products available at the right time and place.

Sales Training and Team Building: AI is revolutionizing sales training, enabling retailers to develop more confident and competent sales teams. AI role-playing tools provide realistic simulations, preparing associates for various customer interactions. Lund suggests that this can accelerate training to competency by 40% compared with traditional methods. What’s more, AI can capture best practices from top performers and translate them into scalable training content, ensuring consistent excellence across the team.

Hyper-Local Marketing: AI empowers retailers to engage with their local communities more effectively. By analyzing local data, AI can tailor promotions, social media content, and in-store events to resonate with specific customer interests and behaviors. This hyper-local approach fosters a sense of community, driving customer loyalty and engagement.

Streamlined Recruiting and Onboarding: Finding and retaining talent is a perennial challenge for retailers. Lund explains that artificial intelligence can help recruiters and HR personnel streamline and enhance these processes. AI can scan resumes for key skills, develop creative job ads, and even identify leading and lagging metrics for candidates, attracting the best fit for the role. AI can also facilitate a smooth onboarding experience for new hires, ensuring their quick integration into the team.

Outcome Prediction and Decision Support: From promotions to product launches, making informed decisions is essential for retail success. AI can forecast potential outcomes, identify risks, and support strategic decision-making, reducing uncertainty and enabling more confident choices aligned with business goals.

Fraud Detection and Security: As technology advances, so do the methods employed by fraudsters. AI is becoming indispensable in mitigating fraud risks. Jake Miller, Chief Operating Officer at BeMobile, warned at SummitX, ​“Fraud is going to be a bigger and bigger threat, especially with the rise of AI.” But the risks created by the rise of AI, due to increasing fake accounts and bot activity, can also be combatted with AI. AI-powered systems can detect suspicious patterns, identify fake accounts, and protect both customers and retailers from evolving security threats.

The adoption of AI in these areas will be essential for telecom retailers to remain competitive and deliver exceptional customer experiences.

While the growth of online shopping has undoubtedly affected the retail landscape, brick-and-mortar stores remain crucial in the wireless industry. However, their role is evolving beyond simply being a place to pick up a new cellphone. Added to that, there is a constant influx of new challenges in store operations that retailers must stay ahead of to survive.

Providing Expert Guidance and Support: Despite the abundance of information available online, many customers still value the expertise and personalized assistance that knowledgeable sales associates can provide. This is particularly relevant in the wireless industry, where devices and service plans can be complex, and customers often seek guidance in making informed decisions. Jen Gilman, Director of Sales Operations at Cox Communications, observed at SummitX, ​“Customers don’t want to be sold. They want to feel you’re a trusted partner. So being able to sit down at a table and have a conversation with them and have a connected experience is really important.”

Creating Engaging In-Store Experiences: To remain competitive against online channels, brick-and-mortar retailers need to offer unique and engaging experiences that draw customers in. This could involve incorporating innovative technologies, interactive displays, or personalized consultations that go beyond a transactional exchange. At a SummitX panel discussion, Jake Miller highlighted the need for speed, convenience, and customization in the in-store experience, saying, ​“That’s where everything is pushing right now.” Jason Ellis of 3 Park consultancy added in the same panel discussion, ​“There’s also an opportunity for us to figure out how we can make it more convenient on the time management side for the customer.” Additionally, retailers could explore incorporating additional services like device repair, as Apple has successfully done, to create a more comprehensive and valuable customer experience.

Embracing Hybrid Retail Models: Recognizing that the customer journey often spans both online and offline channels, retailers need to embrace hybrid models that provide a seamless and integrated experience. This could involve offering options like online ordering with in-store pickup or home delivery, allowing customers to choose the most convenient method for their needs25. Chris Smith, Vice President of Channel Sales and Experience at TELUS, emphasized the importance of catering to customers who prefer a hybrid purchasing process, saying, ​“From a carrier perspective, we need to evolve the business model to be an enabler of the retail channel rather than a competitor with online-only deals. Otherwise, we’re creating barriers, and we’re not optimizing for the customer who wants a hybrid purchasing process.”

Questions to Answer for Wireless Retail Strategy: In his separate SummitX breakout session, titled Does Retail Matter?, Jason Ellis said that there are six questions every wireless retailer should ask themselves and be able to answer with a confident strategy.

1. What consumer trends are we following and are they part of our retail strategy?
2. What are our core competencies, what are we the best in the world at doing?
3. How are our digital platforms interacting with retail to provide the best overall customer experience?
4. What products do we have that we can tell stories around to create differentiated experiences?
5. How often do customers tell their family and friends about the products or services that we sold them?
6. How consistent and repeatable is our store experience?

By focusing on expert support, engaging experiences, customer relationships, and hybrid retail models, brick-and-mortar stores can remain vital destinations for wireless customers, even in the face of growing online competition.

The increasing adoption of embedded SIM (eSIM) technology presents both opportunities and challenges for wireless retailers. eSIM, which eliminates the need for a physical SIM card, is poised to revolutionize the way consumers activate and manage their mobile services.

Emir Aboulhosn, CEO of NetLync, who presented on the topic at SummitX, told iQmetrix, ​“We are inevitably moving towards eSIM because both Apple and Google are obsessed with the customer experience, and they want to ensure any transfer between devices is seamless.” 

This shift presents wireless retailers with several opportunities as well as threats, in an industry that has both strengths and weaknesses when it comes to adopting new technologies. Here is Aboulhosn’s SWOT analysis on eSIM in wireless retail.

Strengths

Improved Customer Experience: eSIM enables significantly faster activation and data transfer processes, leading to a more streamlined and convenient customer experience. Aboulhosn noted, ​“The established model [for device purchase, activation, and data transfer] is a several-hour process. With eSIM, the entire process is much faster.” This improved efficiency frees up time for sales associates to engage with customers, and potentially upsell services or accessories.

Flexible Service Options: eSIM expands retailers’ product offerings, providing customers with a wider choice of eSIM-only and eSIM-enabled devices. This flexibility allows retailers to cater to diverse customer needs and preferences, further enhancing their ability to provide tailored solutions.

Sustainability: eSIM aligns with the growing emphasis on sustainability. By eliminating the need for physical SIM cards, eSIM reduces plastic waste, appealing to environmentally conscious consumers and supporting retailers’ sustainability goals.

Weaknesses

Device Upgrades Needed: A significant barrier to widespread eSIM adoption is the requirement for customers to upgrade to newer devices that support eSIM functionality. While iPhone models since the iPhone XS have eSIM capabilities, many Android users will need to upgrade their devices to take advantage of eSIM. The average device upgrade cycle of nearly three years suggests that broader eSIM adoption may take time.

Lack of Customer Awareness: Many consumers are still unfamiliar with eSIM and its benefits. This lack of awareness stems partly from carriers’ initial reluctance to adopt eSIM and the limited exposure consumers have had to the technology. However, as eSIM-only phones become more prevalent, consumer awareness is expected to increase.

Need for Store Associate Training and Education: While eSIM processes are relatively straightforward, adequate training and education for store associates are crucial to ensure they can effectively guide customers through eSIM activation and address any questions or concerns.

Opportunities

New Digital Customer Segments and Retail Approaches: Aboulhosn suggests that local retailers can leverage eSIM to fulfill online orders with in-store or home delivery activation, extending their reach beyond their physical locations and providing a unique, convenient experience.

Personalized In-Store Experiences: The faster service times associated with eSIM free up sales associates to engage in more meaningful interactions with customers. This allows for greater personalization, addressing individual needs and preferences, and fostering stronger customer relationships.

Cost Savings: eSIM’s potential to reduce in-store processing times can lead to cost savings in workforce management. Retailers can optimize staffing levels, minimize wait times, and improve overall operational efficiencies.

Threats

Potential Reduced Store Traffic: As the process of purchasing and activating a phone becomes entirely online, some customers may choose to bypass physical stores altogether. However, Aboulhosn points out that factors like delivery logistics and the need for in-person assistance for some customers may mitigate this threat.

Potential Regulation Changes: Like any emerging technology, eSIM is subject to potential regulatory changes that could affect its adoption and use. Retailers need to stay informed about evolving policies and adapt their strategies accordingly.

Wireless retailers who view eSIM as an opportunity for innovation and enhanced customer experiences will be best positioned for success. Adapting to this technological shift will require strategic planning, employee training, and a focus on creating a seamless and engaging customer journey that encompasses both online and offline channels.

The carrier landscape is also experiencing significant shifts, driven by changing consumer preferences, technological advancements, and the emergence of new competitors. The race is on for carriers to retain and gain subscribers and new players to capture market share, while the retail storefronts continue to shift, consolidate, and expand in multiple directions.

Focus on Multi-Product Bundles: As the lines between telecommunications, entertainment, and home services continue to blur, carriers are increasingly focusing on multi-product bundles to attract and retain customers. At SummitX, Chris Smith explained TELUS’s strategy, saying, ​“For us at TELUS, selling a single wireless service to a customer is increasingly difficult. Our focus is on selling both a mobile and a home solution… those multi-product sales where the churn rates drop dramatically.” These bundles now extend beyond traditional offerings like TV, mobile, and home phone to encompass services like healthcare, home security, and home automation, allowing carriers to become more deeply integrated into their customers’ lives.

Rise of Specialized MVNOs: Mobile virtual network operators (MVNOs) have gained traction by targeting specific customer segments with specialized offerings. Companies like Mint Mobile, known for their affordable and straightforward plans, have disrupted the market and forced traditional carriers to re-evaluate their strategies. Jason Ellis acknowledged this trend, saying, ​“With specialized offerings coming from successful MVNOs such as Mint Mobile, I’d expect further segmentation in the carrier space in future years.”

Cablecos in the Wireless Market: U.S. cable companies, like Spectrum, Xfinity, Optimum, and Cox, have aggressively expanded their presence in the wireless market and are gaining mobile subscribers, albeit in relatively smaller numbers compared with the Tier 1 US carriers. They have also upgraded their retail spaces, which are prominently featuring wireless offerings, and are heavily promoting bundle discounts that combine their traditional cable and internet services with wireless plans. Jeff Moore, a leading expert in wireless retail from Wave 7 Research, observed at his breakout session at SummitX, ​“Now, [cable] stores are nice looking, they have phone deals, they’re staffed well, and they’re pitching wireless very heavily — in addition to, of course, their cable and internet services and other things.” This expansion by cablecos has intensified competition and is compelling traditional carriers to innovate and enhance their offerings to maintain market share.

Multi-Carrier Dealer Stores: An estimated 7,000 multi-carrier dealer locations continue to play a vital role in the U.S. wireless retail market, offering services from brands like Simple Mobile, Ultra Mobile, and Verizon Prepaid. The nature of these stores varies widely, with some now selling Spectrum, AT&T postpaid, and MobileX services. Moore said that his company, Wave7 Research, has consistently found Simple Mobile to be the leader in this space since 2015.​“Our research has concluded that more than two-thirds of these 7,000-plus multi carrier tours are selling Simple Mobile.”

National Retail Wireless Trends: Walmart is increasingly prominent in wireless retail, with plans to add or expand 150 Supercenters by 2029. Of its 3,558 wireless retail locations, approximately 2,900 are now run by third-party operators such as OSL. A recent trend has been the promotion of free phones with in-store activations. Moore observed, ​“Walmart has a very focused strategy, they’re pursuing it aggressively, and we really think that they’re winning market share. One way you can tell that is, when Straight Talk was acquired by Verizon, it had more than nine million subscribers — and where is Straight Talk sold? Only at Walmart.” On the flip side, Best Buy appears to be contracting its wireless retail footprint, with 890 locations, and 10-15 store closures expected this year. Meanwhile, Costco, Sam’s Club, and Target are increasingly key players in wireless retail.

Growing Focus on Wireless Home Internet Sales: Perhaps in response to cablecos capturing some market share, wireless home internet is becoming a major focus for carriers in retail. T-Mobile Home Internet is now sold at nearly 13,000 stores, including T-Mobile and Metro locations, as well as Sam’s Club and Costco. Verizon Home Internet has a presence in Total Wireless stores, and Straight Talk Home Internet launched at nearly 2,000 Walmart locations in 2022. AT&T promotes its Internet Air service in stores, with a preference for pitching AT&T Fiber where available.

The wireless retail industry faces several additional challenges that, when addressed strategically, can be transformed into opportunities for growth and innovation.

Addressing the Skills Gap: Finding and retaining skilled employees is a persistent challenge in the retail sector. The wireless industry, with its increasing reliance on technology and the need for knowledgeable sales associates, is particularly susceptible to this skills gap. BeMobile’s Jake Miller highlighted the opportunity to attract Gen Z workers who are ​“money-oriented, career-minded people” and seeking alternatives to traditional college paths. However, retailers need to develop compelling narratives that showcase the earning potential and career growth opportunities within the wireless retail sector. Additionally, providing ongoing training and development opportunities, as well as recognizing and rewarding employee achievements, is crucial for both attracting and retaining top talent.

Prioritizing Sustainability: Sustainability is no longer simply a buzzword; it’s a core value for many consumers, especially younger generations. Retailers that demonstrate a commitment to sustainable practices, such as reducing waste, promoting energy efficiency, and supporting ethical sourcing, can gain a competitive advantage. In the wireless industry, this includes embracing the circular device economy by offering certified pre-owned devices, which reduces environmental impact, lowers costs for consumers, and aligns with sustainability goals. Chris Smith highlighted TELUS’s acquisition of Mobile Klinik, a multi-location repair brand, as an example of their commitment to sustainability through the circular device economy. In the same session, Jason Ellis noted, ​“Today’s consumers expect sustainability at the core of the products they’re purchasing, and we see all the major OEMs, carriers, and retailers with set sustainability goals.” Moreover, companies with strong sustainability initiatives are more likely to attract employees who share those values, particularly among younger generations.

Navigating Fraud and Security Threats: As technology advances, so do the tactics employed by fraudsters. The wireless retail industry, handling sensitive customer data and high-value devices, is a prime target. During the same panel discussion, Jake Miller stressed the importance of protecting customer data, saying, ​“We process so much personal information on our devices, such as private photos, credit card information, and mobile banking. One local mistake can give someone access to a person’s entire life on those devices. We have to embrace the responsibility to protect our customers.” Retailers and carriers must implement robust fraud detection and prevention measures, staying ahead of evolving threats and ensuring the security of both their operations and customer information. This includes investing in advanced security technologies, training employees to identify and report suspicious activity, and collaborating with industry partners to share information and best practices.

By proactively addressing these challenges and transforming them into opportunities, the wireless retail industry can strengthen its position, build customer trust, and foster a more sustainable and secure future.

The wireless retail market is dynamic and constantly evolving. The trends discussed above will continue to shape the industry in 2025 and beyond, leading to a retail landscape that is more technology-driven, customer-centric, and adaptable than ever before. Here are some key predictions for the future of wireless retail:

Continued Growth of AI Integration: AI will become increasingly embedded in all aspects of retail operations. Retailers will leverage AI for tasks ranging from inventory management and demand forecasting to personalized marketing, customer service, and fraud prevention. The use of AI will enable retailers to operate more efficiently, make data-driven decisions, and provide more tailored and engaging customer experiences.

Widespread eSIM Adoption: The transition to eSIM will accelerate, driven by the push from device manufacturers like Apple and Google, as well as the increasing consumer demand for convenience and flexibility. The widespread adoption of eSIM will lead to the emergence of new retail models, such as fully digital purchase and activation processes, and will likely intensify competition within the market. This will compel retailers to adapt their strategies, optimize their online presence, and find innovative ways to differentiate themselves in a digital-first environment.

Further Blurring Lines Between Online and Offline Retail: Hybrid retail models will become the norm, as retailers recognize the need to provide a seamless experience across all channels. Customers will expect the ability to browse and purchase online, pick up in-store, receive home delivery, and access support through multiple channels. Retailers will need to invest in integrated systems, omnichannel fulfillment capabilities, and personalized communication strategies to meet these evolving expectations.

Key Emphasis on Personalized and Experiential Retail: In a world saturated with choices, retailers need to create memorable and meaningful experiences that resonate with customers on a personal level. This means moving beyond transactional interactions and focusing on building relationships, understanding individual needs, and providing tailored solutions. Experiential retail, which involves creating immersive and engaging in-store environments, will also become increasingly important. Retailers will need to leverage technology, design thinking, and a deep understanding of their target audience to create experiences that surprise and delight customers, fostering loyalty and advocacy.

The wireless retail landscape is a dynamic and ever-changing environment, presenting both challenges and opportunities for stakeholders across the industry. Adapting to technological advancements, understanding shifting consumer expectations, and embracing innovation are essential for success. Retailers and carriers that effectively leverage AI, navigate the transition to eSIM, and focus on delivering exceptional customer experiences both online and offline, will be well-positioned to thrive in the years ahead. By embracing these trends and adopting a forward-thinking approach, the wireless retail industry can continue to evolve, meeting the needs of today’s consumers while shaping the future of connected experiences.