Residential Phone Lines Dwindling

As wireless services improve, traditional phone lines are going away

SNL Kagan expects that telecommunications carriers’ market share of fixed residential telephone service to decline, mostly due to IP voice services from cable operators.

In the past two years, the telcos’ share has dwindled from 90% to 74% of total connections. Over the next five years, that share will fall another 23%.

US IP voice subscribers will reach 31.4 million in 2012, giving cable operators a 26% market share.

A wider issue, however, is that consumers are increasingly ditching their landlines altogether for mobile phones. SNL Kagan estimates 12 million households currently have mobile-only phone connection. That number is expected to increase to about 26 million in 2012.

“The maturing of the younger, more tech-savvy demographic combined with emerging technologies (such as femtocell) set to improve wireless coverage and reduce costs will further promote the position of wireless services,” said Ian Olgeirson at SNL Kagan.

SNL Kagan Via eMarketer