As many as 24 percent of landline users would consider abandoning those lines in favor of mobile-only service, a survey by In-Stat sugggests. And some think that forecast is too conservative. Citigroup analyst Michael Rollins argues that by 2010, wireless-only households should rise to 27 percent, up from 13 percent last year and an estimated 17 percent this year.
In fact, the cord-cutting trend seen among younger U.S. wireless users might be hidden to a certain extent, as many teenagers may now be quite comfortable with the idea of using a mobile as the voice appliance, and simply haven't yet had a chance to make their preferences known in the broader market.
To be sure, the typical cord cutter is under 35 years old with a small household and a lower income than the traditional phone user, In-Stat says.
“The largest number of current cord cutters—those who do not have a landline, but rely solely on their mobile phone—are those one might expect: young, single, living alone, or sharing quarters such as a dormitory or rooming house,” says Jill Meyers, In-Stat analyst. “In many cases, these are people who are the least-likely candidates to have a landline phone.”
To nobody's surprise, current cord cutters, who have no landline service, use 22 percent more mobile minutes than the average user, and 40 percent more mobile minutes than those not interested in surrendering their landline.
As you also might suspect, potential cord cutters frequently are on family or group mobile rate plans. That is to say, they are teenagers or college-age adults whose bills are paid by other family members. They also are users who simply are accustomed to communicating using a mobile device rather than a "home phone."
Potential cord cutters also are heavy users, since nearly all their calling and texting is concentrated on a personal mobile device. Their spending averages $111.41 a month. Most estimates peg cord cutters at about five to eight percent of users. Analysts at the Yankee Group think the trend will keep growing, and reach 15 percent in several years.
As a parent with three young adults on a such a plan, I can attest that per-capita spending is much higher than for the parents also on shared plans. Way higher, and in line with the In-Stat findings.
