| 26 February 2004 - While some significant
barriers still exist to the widespread displacement
of landlines by wireless phones, consumer attitudes
clearly illustrate the potential for wireless substitution
as the wireline subscriber base and value proposition
continue to deteriorate, reports In-Stat/MDR. The
high-tech market research firm finds that 14.4%
of US consumers currently use a wireless phone as
their primary phone, with the remaining 85.6% still
using a landline as their primary phone. However,
among those consumers still using a landline as
their primary phone, 26.4% would consider replacing
it with a wireless phone, demonstrating a significant
potential for wireline displacement over the next
five years. |
 |
Mobile wireless services have quickly become a viable
alternative to traditional landline service for a large
number of consumers in the US. With wireline-to-wireless
number portability introduced as part of the FCC's Wireless
Local Number Portability (WLNP) mandate, which was implemented
by wireless carriers in November 2003, consumers now
have an unprecedented degree of flexibility and convenience
in cutting the cord on their landlines.
In-Stat/MDR has also found that:
- Consumers using a wireless phone as their primary
phone are most likely to be young (ages 18 to 24),
single, residing in an urban area, subscribers to
Sprint and T-Mobile, and mobile data users.
- Factors that would influence consumers to drop their
landline phone in favor of wireless include better
prices, improved network coverage and quality-of-service,
and richer mobile phone functionality. Factors that
would prevent consumers from replacing their landline
with a wireless phone include lack of reliability
and cost of service.
- It is most likely that 29.8% of wireless subscribers
will not have a landline by 2008.
This Market Alert is drawn from the In-Stat/MDR report,
"Cutting the Cord: Consumer Profiles and Carrier
Strategies for Wireless Substitution", which includes
survey results and behavioral & demographic profiles
of wireless subscribers who already use a wireless phone
as their primary phone, as well as those who are likely
to replace their landline and the reasons why consumers
would or would not do so. The report also includes a
review and evaluation of technology solutions that can
be used by carriers to either stimulate or mitigate
wireless substitution in addition to US wireless substitution
forecasts.
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