The report,
Wireless Voice and Broadband Access Unlock Local Lines Grip on Consumers, claims that approximately 3% of US households have replaced landlines with a wireless phone. Meanwhile, broadband access is on the increase and will reach 37% of US households by 2006, relieving them of the need to have additional phone lines.
The effect of these changes will be the reduction in the number of landlines from 122.2 million in 2002 to 112.4 million in 2006, a negative annual growth rate of 1.7%.
“It is the first time in history that the number of access lines has declined in the residential local voice market,” said report author Aurica Yan, a senior analyst at The Yankee Group. “Local voice providers are now challenged to expand into new enhanced products and services to offset this decline.”
