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26th October - Between 23% and 37% of US wireless
subscribers will use a wireless phone as their primary telephone
by 2009, reports In-Stat. About 9.4% of US wireless subscribers
already use a wireless phone as their primary phone, and compared
with earlier surveys, fewer consumers feel that a wired phone
is necessary according to the high-tech market research firm.
Those who are considering wireless substitution for landline
are primarily motivated by lifestyle issues, as long as they
don't have to give up much in terms of quality, reliability,
or services. Wireless carriers can stimulate substitution
by continuing to attract customers to advanced wireless features
and educating them about availability of number portability.
A recent report by In-Stat found the following:
- Consumers who are most likely to consider replacing their
landline phone with wireless are those who are already heavy
wireless users. Demographics do not offer much insight into
the likelihood of wireless substitution.
- Among those with a wireless and landline phone, resistance
to wireless substitution has dropped dramatically since
In-Stat's 2003 survey.
- Barriers to landline replacement, particularly in-building
coverage and perceived inconvenience (such as losing DSL
or having to change the phone number), are resolvable with
other technologies, continued network build-out, or consumer
education.
This Market Alert is drawn from the In-Stat report, "Cutting
the Cord: Consumer Profiles and Carrier Strategies for Wireless
Substitution", which covers analysis of a proprietary
consumer survey on the use of wireless phones as a substitute
for landline service. It reveals the demographics and spending
behaviors of those most likely to replace wireline service,
as well as reasons they would choose not to. It includes three
forecasts models of the percentage of US consumers who will
choose a wireless phone as a substitute for a landline phone
over the next several years.
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