Survey Shows that Wireline Erosion Will Accelerate; 20% of Households Plan to Cancel or Not Use Wireline Services

In-Stat Nearly 20% of respondents that use wireless voice service plan to drop landline phone service. 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. With this increase in wireless usage, comes an increased displacement of landline use.

• 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. US Consumer Telecom Survey

Cutting the Cord: Consumer Wireline Erosion Publ 20060206