Landline Subscribers Cancel Service; Bundled Services Pick Up Some of the Slack

Massive numbers of American cellphone users have given up their landline telephones. Cutting off the landline saves consumers a significant amount of money each month. According to the National Health Interview Survey (NHIS), 77.3% of U.S. households had wireless-only phone service as of December 2022, up from only 10.5% back in December 2006. (The NHIS makes this survey each year in order to keep track of what types of telephones that households might use to contact EMS and medical offices.)

There is more at work here than simply saving money. Consumers, particularly younger people, prefer their smartphones to any other communications medium. They use them for phone calls, text messages, email and internet access. It would not be convenient for them to switch back and forth from a cellphone to a landline, and a landline doesn’t offer the advanced features and rich experience of a cellphone (particularly a smartphone, which is now carried by more than 88% of U.S. cellphone subscribers.) This same pattern is true throughout the world.

At the same time, large numbers of homes have adopted internet based VOIP phones, often from their cable providers. With new developments in technologies such as VOIP and enhanced, more reliable 4G cellular service (and even faster 5G in many cities), the demand for wired phone service will continue to fall.

AT&T is pushing its AT&T Fiber with packages which can include its cutting-edge All-Fi technology, while Verizon is boosting its own Fios high speed internet service. Both services offer TV via the internet that is similar in nature to the program choices offered by leading cable companies. They have implemented massive investments that are bringing fiber-optic cable directly to the home and office, or at least directly into the neighborhood. Fiber to the Premises (FTTP) enables these firms to add fast access to enhanced entertainment, such as video on demand, as an important part of their bundled services. At the same time, they are able to offer internet access at extremely high speeds.

Verizon offers its Fios bundles to residential customers in most major U.S. cities. Consumers can receive a local phone number, unlimited long-distance in the U.S. and Canada, along with several enhanced phone features, plus Fios internet access and Fios Digital TV.

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Landline Subscribers Cancel Service; Bundled Services Pick Up Some of the Slack, Business and Industry Trends Analysis

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