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In homes across the US, the good ol' reliable landline telephone is disappearing as more consumers decide to cut-the-cord and switch to wireless for their personal voice communications needs.
"Compared to 2004 survey results, wireless has increased from one-quarter of home phone minutes to nearly one-third in 2005," says Bryan Van Dussen of In-Stat. "With this increase in wireless usage, comes an increased displacement of landline use."
According to the In-Stat "US Consumer Telecom Survey," nearly 20% of respondents that use wireless voice service plan to drop landline phone service.
Furthermore, the survey indicates that in the future wireline erosion will actually accelerate. In-Stat sees wireless usage increasing in proportion to wireline usage, particularly among 18-24 year olds. In fact, both the youth market and lower income respondents are more inclined to cut-the-cord. Those making under $50,000 are more apt to cancel their landline versus those making over $50,000.
In-Stat found that long distance usage is being particularly affected by the trend, with nearly half of respondents indicating decreased landline usage, and the average decrease being 60%.
Mobile phone subscriptions are growing around the world, with Strategy Analytics projecting a rise from 2.5 billion in 2006 to 3.5 in 2010.
This at-home trend to cut-the-cord reflects data released earlier this year by In-Stat, which showed that for the first time this year businesses would spend more on wireless voice services than on wireline (see A Wireless Line Is Crossed).
For more information on this subject, purchase eMarketer's North American Wireless Trends report.
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