A new report released today from doxo reveals that Americans spend an average of $1,342 per year on mobile phone services, up 5% from last year. Through a statistical analysis of actual household payments toward mobile phones across 97% of U.S. zip codes, doxoINSIGHTS’ Mobile Phone Market Size and Household Spending Report for 2023 sized the overall market, revealing that Americans spend $175 billion annually on mobile phone services. The findings uncover that 94% of U.S. households with a mobile phone bill spend $119 per month, or $1,428 per year – which equates to $1,342* per year when averaging across all U.S. households. The report breaks out the U.S. household spending market size; percentage of households that pay each bill; and average monthly and annual bill pay costs by state, largest 50 U.S. cities and cities in the U.S. with more than 40k households.
As Americans continue to face inflation across categories, a recent survey revealed that more than half of Americans (56%) would be open to switching service providers to save money. Compared with doxo’s 2022 analysis of the $166 billion Mobile Phone market (finding consumers pay $113 per month, $1,275 per year*), 94% of American households that have this bill have shown a 5% increase in how much they spend monthly.
“With the average American dishing out nearly $1,000 for a flagship smartphone in 2023, and prices only expected to rise, it’s not surprising that the majority (86%) of consumers report a growing concern about their mobile phone bills,” said Liz Powell, Senior Director of INSIGHTS at doxo. “In the modern-day mobile era where nearly every American household has a mobile phone bill to pay, it’s never been more critical for consumers to have access to this level of data transparency. Through doxoINSIGHTS, we’re arming Americans with the tools they need to not only budget accordingly but also provide critical insights so they can make better-informed decisions when it comes to choosing a service provider.”
The doxoINSIGHTS 2023 Mobile Phone Market Size and Household Spending Report Findings
doxoINSIGHTS leverages doxo’s unique, aggregate, anonymized bill pay data consisting of actual bill payment activity to confirm household service providers across the country. The U.S. Mobile Phone Market Size and Household Spending Report breaks out the household spending market size; percentage of households that pay each bill; and average monthly and annual bill pay costs by state, the 50 largest U.S. cities based on number of households, and those cities with 40k or more households. Key findings from the report include the following:
- Total Market Size: $175 billion spent per year
- Average Monthly/Annual Cost: $119 spent per month; $1,428 spent per year
- Percent of Households: 94% of U.S. households pay Mobile Phone bills
- Average Annual Cost per U.S. Household: $1,342 per year*
- Percent of Annual Income: Mobile Phone bills amount to 2% of consumers’ income per year
States with the Highest Mobile Phone Bills
|
State |
Monthly Amount |
Average Annual Amount* |
% of Households w/ Bill |
% Higher than National Average |
|
$165 |
$1,960 |
99% |
39% |
|
|
$143 |
$1,424 |
83% |
20% |
|
|
$142 |
$1,568 |
92% |
19% |
|
|
$139 |
$1,535 |
92% |
17% |
|
|
$138 |
$1,524 |
92% |
16% |
Access Mobile Phone Household Bill Pay Data for all 50 states here.
Largest U.S. Cities With the Highest Mobile Phone Bills
|
U.S. City |
Monthly Amount |
Average Annual Amount* |
% of Households w/ Bill |
% Higher than National Average |
|
$211 |
$2,253 |
89% |
77% |
|
|
$143 |
$1,647 |
96% |
20% |
|
|
$131 |
$1,509 |
96% |
10% |
|
|
$126 |
$1,406 |
93% |
6% |
|
|
$126 |
$1,482 |
98% |
6% |
Access Mobile Phone Household Bill Pay Data for the 50 biggest U.S. cities here.
For more information, or to view the entire report, visit https://www.doxo.com/doxoinsights/.
*Average Monthly Bill x % of Households with Bill x 12 months per year = Average Annual Cost per U.S. Household.
About doxoINSIGHTS
doxoINSIGHTS provides direct insight into household financial health and spending activity by leveraging consumer surveys and doxo’s unique aggregate bill pay data set, comprising actual bill payment activity to confirmed household service providers across the country. doxo data brings together the broadest available data set for analyzing actual household bill payment activity, pulling from over 8 million paying consumers across over 97% of U.S. zip codes. doxo’s payment network covers over 120,000 billers in 45 different service categories and enables payments using bank accounts, credit cards or debit cards. This uniquely broad statistical foundation powers doxoINSIGHTS reports – uncovering key trends for household financial health and bill payment behavior.
About doxo
doxo delivers innovation that transforms the bill pay experience for consumers, billers and financial technology providers. For over 8M consumers, doxo’s all-in-one bill pay makes it simple to organize and pay any bill on any device through a secure checkout. For billers, doxo’s network-driven platform enables online and mobile payments with a ridiculously simple integration, radically lower costs, and game-changing features that are unavailable with legacy bill pay vendors. For fintech partners, doxo delivers financial innovations to consumers across 97% of US Zip Codes, paying from more than 5,000 financial institutions to over 120,000 billers in 45+ service categories. For employees, doxo is a creative, ever-learning team that is passionate about building fintech tools that dramatically improve the bill pay experience. For investors, doxo provides an extraordinary opportunity to invest alongside Jackson Square Ventures, MDV, and Bezos Expeditions to disrupt a market that accounts for over $4T of US Household spend. To learn more about America’s leading bill pay network, visit doxo.com.
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