Minorities Are Attractive Market

A new report from Parks Associates suggests that minorities represent new opportunities for wireless communications sales. The penetration of wireless among minority groups is lower than the general population, and the prospects for growth are stronger. The report cited 31% of Blacks and 14% of Hispanics intent to buy service in the next year, compared with 10% of whites. The big question I ask is: are carriers capable of executing competent segmentation strategies? Based on past experience, I'd say no. Nextel is the only major carrier to demonstrate a complete segmentation strategy, with business users, and with youth using its Boost Mobile subsidiary. Carriers will attempt to sell to the minority groups with wishful "hip-hop" campaigns, which will likely be transparent to the target audience. MVNOs will likely have a role in the successful segmentation plays.

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