Friday, January 20, 2006

18 Percent Of European Cellular Users Interested In Disconnecting Their Landline

Strategy Analytics: One in five mobile phone owners in Western Europe would consider disconnecting their landline service. Two-thirds would use their mobile more at home if calls were charged at landline rates.

Telecoms supply attitudes have changed very little in recent years, despite a rapidly changing market climate. Future voice usage profiles will be much more sensitive to price levels than any combination of new technologies or converged services.While 19 percent of homes in W. Europe are already cellular-only; cellular operators should be encouraged to see that a further 18 percent of cellular users with fixed telephones are also considering disconnecting that fixed line. Younger users will be key targets for cellular operators, with older users in family units showing strong interest in triple and quad plays.

Fixed-mobile convergence prospects also look good. We found significant interest in the ability to make mobile calls from home at landline rates and growing interest in VoIP on cellphones. Convergence players will need to tap into existing VoIP communities, such as Skype, with these users particularly open to lower home cellphone rates, and the ability to access VoIP services via their cellphone.

Undisplayed Graphic

Source: Strategy Analytics, Inc

Western European Cellular User Dynamics, Publ 20060120