Technology | Media | Telecommunications

Thursday, December 06, 2007

No Home Phone Lines for Young Americans

The decline in the traditional phone company's core business continues, unabated. The trend of young U.S. wireless users opting to disconnect their home phone lines in favor of wireless-only services is growing, according to the latest assessment by In-Stat.

The typical cord-cutter is under 35 years old with a small household and a lower income than the traditional phone user, the high-tech market research firm says. This was a notable finding from a recent In-Stat survey of U.S. telecom consumers.

"The largest number of current cord-cutters -- those who do not have a landline, but rely solely on their mobile phone -- are those one might expect: young, single, living alone, or sharing quarters such as a dormitory or rooming house," says Jill Meyers, In-Stat analyst. "In many cases, these are people who are the least-likely candidates to have a landline phone."

That said, when these young people have the means to install a wireline phone and maintain their mobile phone, will they? It's highly unlikely. This potential phone service revenue opportunity will never be realized. That's the reality. These consumers see no apparent benefit in embracing a relic of the 20 century communications industry.

In-Stat's market study found the following:

- Current cord cutter respondents use 22 percent more cellular minutes than the average survey respondent, and 40 percenet more than those not interested in surrendering their landline.

- Some 24 percent of those with a landline would consider replacing it with a mobile phone.

- Potential cord cutters have the highest penetration of family or group mobile rate plans -- they also have the highest spending, averaging $111.41 per month.