News
US dumps its landlines
Stuart O'Brien Sep 17 2008, 2:55pm
Seventeen per cent of US homes are now 'mobile only', says Nielsen.
That's equivalent to about 20 million households and could rise to 20 per cent of the total by the end of this year.
Nielsen Mobile says the current economic climate is partly to blame as people look to slash the $40 average monthly bill associated with US landline subscriptions. The company also found that:
- US 'cord-cutters' tend to have lower income-levels: 59 per cent have household incomes less than $40,000.
- Smaller households, with just one or two residents, are more likely to cut the cord.
- Moving or changing jobs are the biggest life events associated with cord cutting: 31 per cent moved prior to cord cutting and 22 per cent changed jobs .
- Wireless substitutors tend to use their mobile phones more than their landline peers (45 per cent more per phone), but still save an average $33 per month in a household of one subscriber, less $6.69 for each additional wireless resident, when they cut the cord.
Alison LeBreton, VP of client services at Nielsen Mobile, said: “As wireless network quality improves and unlimited calling becomes increasingly pervasive, we expect the trend toward wireless substitution to continue. In a tightening economy every dollar counts, and consumers are more and more comfortable with the idea of ditching their landline connection.”
