Sunday, August 28, 2005

More Feel at Home with Cell Phone

The Enquirer of Cincinnati offers up another article on consumers dropping their home landline phone service for cell phones. According to the article, at least 10 percent of cell phone users have dropped their landline service. This might lead to telcos dropping costs to try and stem the bleeding.

Linda Barrabee at Yankee Group said, "You absolutely will see further price erosion. From the landline perspective, they will be looking to shore up their resources. The wireless companies will be looking to get into the home even more."

The article cites cell phone reliability and pricing as factors why landines are still holding on. Julie Ask at JupiterResearch remarked, "The thing people like is that the (landline) phone works all the time, even when the power is out While wireless prices have come down, they are still more expensive than home phone service, and the home phone is still seen as more reliable."

In the end, keeping the home phone seems to be the safest bet. As Roger Entner at Ovum noted, "When someone moves into a new place, the first call they normally make is on a cell phone to get a home phone. Increasingly, more people aren't making that call at all, even though there will always be a place for the family phone."