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With strong usage of digital media and new technology, consumers in Canada are not just cutting the cord when it comes to TV, but for phone service as well, according to estimates from the Convergence Consulting Group.
The IT and business consulting services firm estimates that this year, more than one in five households in Canada will be wireless only, up almost 4 points from 2012. By 2015, 29.4% of households will rely entirely on mobile phone service.
This comes as the share of mobile users who have a smartphone rises from 55% in 2012 to 66% this year, according to Convergence Consulting Group. This is a more bullish estimate of smartphone penetration than eMarketer’s, but research firms agree that Canada has among the highest smartphone penetration rates in the world.
Convergence Consulting believes the ongoing loss of subscribers to telephone companies will also affect their share of the pay TV market, under a model that accounts for cord-cutting as well as overall growth in the potential subscriber base. Cable companies, which tend to also offer faster wired broadband subscriptions, are positioned to consolidate their share of the market as smartphone owners cut the phone cord.
Meanwhile, marketers can be sure that residents of wireless-only households will keep their smartphones by their side, even at home, where overall multitasking trends are already encouraging mobile usage during TV viewing and other “not on the go” time.
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