By: Dan Carella

Price has always been a leading factor influencing consumer decisions. Following several years of inflationary concerns, it’s no wonder telecom consumers surveyed by TransUnion reported pricing as the dominant factor driving their choice of providers.

Yet, the same research also suggested a shifting paradigm that presents new opportunities for telecom providers. A growing number of consumers are placing a premium on security services, with 58 percent expressing interest in identity protection services from telecom providers. What’s more, two-thirds of those would even be willing to pay for such offerings.

It appears identity security is becoming a compelling driver of consumer choice. With nearly a quarter of consumers considering switching telecom providers in the next six months, this price-protection paradox reveals how affordability and security may be a key combination for differentiation in a crowded market.

Price: The Traditional Battleground

Pricing wars have long-dominated the competitive telecommunications landscape, with promotional discounts, bundle offers, and aggressive price-matching underpinning customer acquisition efforts. As a significant portion of telecom consumers consider switching providers in the near future, pricing appears to remain a critical factor in retaining and attracting these customers.

Yet, the reliance on price as a primary differentiator has limitations, as constant undercutting can only go so far. Relying solely on price often leads to diminishing returns for telecom providers while making customers less loyal and more likely to leave for the next lowest offer.

Protection: An Opportunity to Deliver Value

The consumer interest in security uncovered in TransUnion’s research highlights a significant growth opportunity. A majority of respondents expressed interest in telecom providers offering identity protection services, and this growing demand is no accident. In the fourth quarter of 2024, more than a third (35 percent) of Americans surveyed by TransUnion’s Consumer Pulse Study had been notified that details about their identities and/or online accounts had been stolen in a data breach. What’s more, 39 percent of consumers reported they were targeted with an online, email, phone call, or text messaging fraud scheme.

With data breaches and online fraud being increasingly common, consumers are more aware of their digital vulnerabilities. Telecom providers — which already serve as gatekeepers to online activity — are uniquely positioned to address these concerns. Offering identity protection services is not just an add-on; it is a natural extension of their role in safeguarding connectivity and personal information, which delivers additional perceived value to the consumer.

The Security Imperative in Digital Transformation

Digital transformation continues to reshape the way consumers interact with their telecommunication devices. An increasing number of consumers rely on online portals, mobile apps, and digital payment systems in their daily lives. Adoption of the Internet of Things (IoT) is rapidly advancing this trend, as smart home devices, wearables, and connected vehicles become ubiquitous.

Consumer reliance on digital habits only increases consumers’ exposure to cyber risks, but thankfully most are aware of the need for vigilance. Only 3 percent of those surveyed in the 2024 Telecommunications Consumer Report reported taking no action to protect their identities. The most common strategy among participants was regularly monitoring accounts for unauthorized activity, a practice adopted by 73 percent of respondents. As fraud tactics like spam calls and smishing attempts become more prevalent, 64 percent of respondents said they avoid answering calls from unknown numbers, while 60 percent delete and block suspicious text messages.

With mobile devices emerging as a primary attack vector for fraudsters, consumer behaviors reflect a shift toward heightened consumer diligence. Yet many actively seek comprehensive solutions to address these evolving threats.

In this environment, telecom providers can lead by prioritizing security as a core component of the consumer’s connected experience. As they provide the gateway to accessing digital services and managing devices, telecoms are uniquely positioned to act as custodians of the entire digital ecosystem. Embedding security into the fabric of the digital ecosystem enables telecom providers to transform from service providers to