It’s a Wireless Boom as More People Cut the Cord, IDC Says

FRAMINGHAM, MA – JANUARY 8, 2002 – Consumer wireless services are increasingly becoming more desirable and popular, which is having a direct, measurable impact on wireline services. According to a recent study by IDC, by yearend 2001, 10 million access lines were displaced by wireless, primarily by consumers choosing a wireless service over installing an additional access line at home. Overall displacement of wireline services is expected to accelerate even more in 2002, resulting in an additional 10 million access lines replaced by wireless by 2005. This transference will present both great market opportunities for wireless carriers and a major threat to wireline carriers.

 

Trends that will attribute to this shift in customer behavior include:

Wireless prices continue to decline, and the number of minutes in landline service plans continue to increase

Very large increments of evening and weekend local and long distance calling continue to be widely bundled into consumer calling plans at little to no additional cost

Wireless networks continue to improve geographic coverage with continued network build-outs

"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 IDC’s annual survey of U.S. households with wireless users, the number of wireless users who reported using their wireless phones at home increased by 40.9% from 1999 to 2000. Additionally, 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.

IDC’s new study Wireless Displacement of Wireless Forecast and Analysis, 2001-2005 (IDC #26061) is a comprehensive forecast that breaks out displacement by type of wireless technology against both primary and secondary access lines.

To purchase this document, contact Demetra Georgakopoulos at 508-935-4496 or email demetra@idc.com.

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

 

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