Survey Shows that Wireline Erosion Will Accelerate; 20% of Households Plan to Cancel or Not Use Wireline Services
According to the In-Stat US Consumer Telecom Survey, nearly 20% of respondents that use wireless voice service plan to drop landline phone service, reports In-Stat (http://www.in-stat.com). Furthermore, as an indication of future wireline erosion, wireless usage continues to increase in proportion to wireline usage, particularly among 18-24 year olds
Compared to 2004 survey results, wireless has increased from one-quarter of home phone minutes to nearly one-third in 2005. With this increase in wireless usage, comes an increased displacement of landline use.
A recent report by In-Stat found the following:
Long distance usage has been particularly affected, with nearly half of respondents indicating decreased landline usage, and the average decrease being 60%.
Certain population segments are more inclined to “cut-the-cord,” with the youth market and lower income respondents being more inclined to make this transition.
Those making under $50,000 are more apt to cancel their landline versus those making over $50,000.
This Market Alert is drawn from the In-Stat report, Cutting the Cord: Consumer Wireline Erosion (#IN0502207IA), which covers the wireline erosion trend among US telecom consumers. It contains the results of In-Stat’s “Consumer Telecom Survey, 2005” research study. Survey respondents represented a random selection of US residents owning a home telephone. The report includes analysis of US consumer voice telecom services usage and trends, along with forecasts of future use.
More Information on this Research
Title: Cutting the Cord: Consumer Wireline Erosion
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