Tuesday, February 07, 2006

In-Stat: Survey Shows that Wireline Erosion Will Accelerate

Another new survey from In-Stat that finds "nearly 20% of respondents that use wireless voice service plan to drop landline phone service. The report also found that "wireless usage continues to increase in proportion to wireline usage, particularly among 18-24 year olds."

Bryan Van Dussen at In-Stat said, "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."

Key findings include:

  • 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.