A report from the Nielsen Company reveals that wireless substitution continues to increase in the U.S., reaching 20.2 million households, or 17.1 percent of all U.S. households, by the end of June 2008.

 

One in five U.S. households could be without a landline phone by the end of 2008, according to a white paper released by Nielsen Mobile (News - Alert).

 

“As wireless network quality improves and unlimited calling becomes increasingly pervasive, we expect the trend toward wireless substitution to continue," said Alison LeBreton, vice president of client services for Nielsen Mobile. "In a tightening economy every dollar counts, and consumers are more and more comfortable with the idea of ditching their landline connection."

 

The survey report showed that the majority of people who have dropped their landline are in lower income-brackets (46 percent have a household income of $50,000 or less), are younger (64 percent of decision makers in wireless substitution homes are in the 18 to 34-year-old age range, compared to 30 percent of the U.S.) and have smaller household sizes of 1-2 people.

 

31 percent of mobile users were moving and 22 percent changing jobs which are associated with cord cutting. Wireless data card and PC cards that allow a computer user to connect to the Internet via a wireless carrier’s network are also increasingly popular which could be one of the reasons for change.

 

"Landline wireless substitution may just be the start," stated LeBreton. "As wireless data networks improve and speeds become more and more competitive with broadband, some consumers may cut the Internet cord, as well, favoring wireless data cards and other access through carrier networks."

 

Nielsen’s research shows that wireless substitution doesn’t work for everyone. 10 percent of current landline users experimented with cord-cutting at one point, but eventually reinstated landline service. Nielsen reports that needing a landline for another service (security system, satellite TV, pay-per-view, fax machine, etc.) is the primary reason people mend the cord.

 

The Nielsen Company is a global information and media company dealing with marketing, consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and business publications.