As cell phone popularity continues to rise and cell phone prices and monthly service contracts continue to drop, American consumers are discontinuing their telephone landlines in favor of cell phones as their household phone.
Over the past decade,
the impact that cell phones have on the use of landline phones is enormous. In June of 2010, the National Center for Health statistics stated that one out of every four Americans has given up their landline phone and are now using their cell phone exclusively.
There are a few reasons why many consumers have, in huge numbers, ditched the hard-wired phone and relied solely on their cell phone. One reason is that, to some degree, many alternative means of communication have reduced the number of phone calls that phone users make. Many of these means of communication can be utilized via a cell phone. For example, many use their cell phone for obtaining and sending e-mail, messaging on Facebook and other social media sites, and SMS texting, just to name a few.
Therefore, in many ways, the decline of landline phones and the rise in cell phone use does not simply mark a shift between one type of phone to another. The decline of the landline is also a reflection of how individuals have changed in our preferred means of communication. We as a culture have embraced new technologies, alternative ways of contacting each other, and even new ways of being marketed to by companies. The public has become more open to being contacted on their cell phone by mobile/web marketing companies. ABI conducted research in February of 2010 that found that 45% of those asked were comfortable with this concept.
There is evidence that the decline of landline phone usage can also be attributed to the current economy. As an increasing number of people started using cell phones, households continued to pay for landlines because they were used to having them. With the decline of the job market, many households have had to choose between a landline and a cell phone. Because the cell phone can be used almost anywhere, is frequently less expensive than a landline, and cell phones have other features such as internet access, the cell phone becomes the obvious choice.
Furthermore, the current economy has led to a vast increase in home foreclosures, prompting landlines disconnection. Reportedly, in 2008, vacant homes were at a record three million in the United States. Additionally, within the phone company industry, AT&T reported a 5.6% decline in landline usage in 2007. Verizon reported a decrease of 10.9% in 2009, while Qwest Communications had a 17% decrease in land line usage from March 2006 to March 2008.
While these numbers seem staggering for the current industry to find reason to keep landline phones afloat, AT&T along with Verizon Company has expressed they are not ready to discharge the phone line segment of their operations. While they each are aware of the current trends, both companies express it is too soon to discontinue the landline phone business.
In closing, AT&T states that landline telephones are still a valued part of their business. In order to stay current, they are placing emphasis on their broadband and IP based services, such as video. On the other end, Verizon Company has heavily promoted the sale of their service in "bundles," including internet and television service. They stress the dependability of the copper wire versus cell service. Verizon has also proposed a $10.00 a month service for households who want to keep the landline phone for 911 services and for incoming calls.
