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Consumer Wireline Erosion Will Accelerate

According to the In-Stat US Consumer Telecom Survey, nearly 20 percent of respondents that use wireless voice service plan to drop landline phone service, reports In-Stat. Furthermore, as an indication of future wireline erosion, wireless usage continues to increase in proportion to wireline usage, particularly among 18-24 year olds.

"Compared to 2004 survey results, wireless has increased from one-quarter of home phone minutes to nearly one-third in 2005," says Bryan Van Dussen, a Research Director with In-Stat. "With this increase in wireless usage, comes an increased displacement of landline use."

In-Stat found the following:

- Long distance usage has been particularly affected, with nearly half of respondents indicating decreased landline usage, and the average decrease being 60 percent.
- 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.

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