Nearly one out of every three dollars spent on residential telecommunications services in 2010 came from US ethnic communities, so the spending power of the Hispanic-American, African American, and Asian-American communities have become crucial to the survival of telecommunications providers. This market report takes a close look at the purchasing habits and telecom usage patterns of the burgeoning Hispanic segment of the US population. In the last census, Hispanics surpassed the African-American population as the largest minority group in the US. US Hispanic purchasing power is now growing at nearly twice the rate of the general population, fueled by continued population growth and increasing Hispanic employment and income levels.
US Hispanics are heavy users of local, long-distance, international, and wireless calling. Prepaid and post-paid services have also experienced explosive growth in the US Hispanic market.
In this report, Insight examines spending by US Hispanics on local, long-distance, wireless, and pre-paid services, and compares these spending patterns to the general population and to other minority segments including Asian Americans and African Americans.
Hispanics Fueling US Market Growth
On March 24, 2011, the US Census 2010 announced that 36.7 percent of this country's residents were part of a group other than non-Hispanic Whites - or to put it more simply, well over one-third of the United States' population is comprised of minorities. As of April 1, 2010, the country's minority population totaled 111.9 million, while the total US population stood at 308.7 million.
In 2010, Hispanics remained the largest minority group, comprising 50.5 million people or 16.3 percent of the total US population. Over the past decade, Hispanics have been responsible for an ever increasing share of consumer purchasing power. The relatively young Hispanic population, with proportionally more individuals either entering the workforce for the first time or moving up on their career ladders, argues for additional gains in buying power. Hispanics' spending patterns are helping to determine the success or failure of many youth-oriented products and services - including telecom and technology offers. It is this phenomenon that our study will attempt to illuminate.
Insight Research conducted a telephone survey of 500 Hispanic households in October of 2007, October of 2008, and October of 2009 and most recently in February of 2011. These Hispanic households were interviewed regarding their phone expenditures. Interviews were conducted among a nationally representative sample of Hispanic adults 18 years of age and older across the contiguous US. Half of the sample consisted of males and half consisted of females. Utilizing quotas and a statistical weighting scheme, the data was balanced in proportion to the population of the US. Data was collected by gender, age, country of origin, language spoken, income, education, region, markets and acculturation. The results of our survey as well as other findings are presented in the chapters that follow.
The number of Hispanics counted in the 2010 Census was nearly one million more than the Bureau's own estimates. Hispanics remain the largest and youngest minority group in the US. Among children ages 17 and younger, the 17.1 million Hispanic youngsters represent nearly one in four children in the US.
The Census makes it clear that Latinos are comprised of two distinct segments: the native born who represent 70 percent of all US Hispanics and the foreign born. Native born Latinos tend to be younger, more educated, have higher incomes, tend to be unmarried with smaller households, and primarily use English-language media. In contrast, foreign born Latinos, tend to be older, less educated, have lower incomes, tend to be married with larger households, and primarily use Spanish-language media. The segments can be further enumerated by: first generation Latinos, where Spanish culture and language are dominant; second generation, who tend to be bilingual and bicultural; and finally to third generation plus, who are US-dominant, both culturally and linguistically.
In 2010, all of these segments combined had an estimated $1.10 trillion in purchasing power - and study after study has concluded that they can be readily reached and engaged using wireless communications technology...