labels: telecom, in the news, it news, telecom
Mobile phones to displace 23 million landlines by 2006: IDC news
Our Convergence Bureau
01 November 2002
Mumbai: Competitive calling plans and the convenience of mobile phones are prompting more and more consumers to replace their landline telephones with mobile phones. The International Data Corporation (IDC) which tracks the telecommunications industry, says it expects more than 23 million landlines will have been displaced by mobiles in the 12 years from 1995 to 2006, with 13 million lines displaced from 2002 to 2006.

However, most of the telephone lines displaced will be secondary or additional lines. Most users will still have a landline as their primary telephone.

“As wireless carriers add incentives like ‘free’ minutes and long distance to their calling plans, they are becoming increasingly competitive with the price of landline services,” said Scott Ellison, program director of IDC’s Wireless and Mobile Communications service. “As a result, consumers have a viable alternative to adding a second wireline for their children or home office. This presents a significant market opportunity for wireless providers as consumers weigh their access options.”

The teen and young adult market are the most likely to make mobile phones their primary telephone, as they already replace secondary lines much faster than other age groups. IDC believes that most adult users who are likely to go completely wireless have already done so and the bulk of new mobile-only users will be young adults.

However, mobile telephones are unlikely to replace landlines on a massive scale, mostly because of inconsistent service quality, poor coverage inside buildings, and ingrained cultural behavior. These outweigh the convenience and pricing. Home access to the Internet is another factor, since three-quarters of mobile telephone users use a landline at home to access the Internet.


 search domain-b
Mobile phones to displace 23 million landlines by 2006: IDC