September 12, 2005

Industry research and analyst firm The Yankee Group reports that wireless usage continues to outpace wireline usage in the United States.

The Yankee Group reported that personal calling using wireless devices exceeded calling on residential landlines even though 35 percent of the U.S. population doesn't have wireless phones.

The Yankee Group also noted that its own surveys reveal that cell phones displace 60 percent of long distance and 36 percent of local calling from landlines to wireless.

"Wireless substitution for wireline residential phone service is a significant and unstoppable trend," explained Keith Mallinson, Yankee Group's Wireless Global Practice leader. "Carriers should aim to capitalize on the movement toward personal communications through one device on an anywhere, anytime basis rather than resist the inevitable shift away from wireline communications."

Mallinson noted several reasons for the trend, including low prices, in-network calling options that often allow customers to place free calls to other people on the same network, and family plans that have increased the number of people using wireless services.

"The sheer simplicity, familiarity and popularity of pure wireless solutions in comparison to various integrated offerings make wireless substitution more attractive than bundled and converged services," The Yankee Group said. "This position couldn't possibly be reversed before the end of the decade."

Source: RCR News