Skip to main content

Mobile Phone Displacement of Landline

Between 23 percent and 37 percent of US wireless subscribers will use a wireless phone as their primary telephone by 2009, reports In-Stat. About 9.4 percent 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.

"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," says David Chamberlain, In-Stat analyst. "Wireless carriers can stimulate substitution by continuing to attract customers to advanced wireless features and educating them about availability of number portability."

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.

Popular posts from this blog

The Subscription Economy Churn Challenge

The subscription business model has been one of the big success stories of the Internet era. From Netflix to Microsoft 365, more and more companies are moving towards recurring revenue streams by having customers pay for access rather than product ownership. The subscription economy cuts across many industries -- such as streaming services, software, media, consumer products, and even transportation with the rise of mobility-as-a-service. A new market study by Juniper Research highlights the central challenge facing subscription businesses -- reducing customer churn to build a loyal subscriber installed base. Subscription Model Market Development The Juniper market study provides an in-depth analysis of the subscription business model market landscape and associated customer retention strategies. A key finding is that impending government regulations will make it easier for customers to cancel subscriptions, likely leading to increased voluntary churn rates. The study report cites the