According to new research by IDC, by the end of 2001, 10 million landlines were replaced by wireless, primarily by consumers choosing a wireless service over installing an additional access line at home. Displacement of landline services is expected to accelerate even more in 2002, resulting in an additional 10 million access lines replaced by wireless by 2005 providing a considerable threat to wireline carriers.
Should this pattern continue, IDC believes that wireless prices will continue to decline and that landline service plans will bring greater offers for subscribers. Wireless networks, IDC believes, will continue to improve coverage and services.
“Wireless use is rapidly increasing in traditional wireline environments such as homes and work locations with access lines. The primary reason for this dramatic growth is that wireless service pricing is rapidly approaching wireline service pricing,” said Scott Ellison, program director, Wireless and Mobile Communications. “A secondary reason is cultural: Wireless use is now so pervasive that it is seen as a standard and acceptable way to communicate in most environments.”
According to an IDC survey, the number of wireless users who reported using their wireless phones at home increased by 40.9% from 1999 to 2000. In addition, the number of wireless users who reported using their wireless phones at work showed an even more dramatic growth, increasing 58.8% over the same period of time.
