More People Dumping Their Landlines - Report

Global research by MORI, conducted for Nokia, has identified a strong trend for consumers to move from their fixed line phones to use their mobile handsets for all or most of their voice calls. Fixed-to-Mobile Substitution (FMS) is occurring across the four major markets surveyed - Great Britain, USA, Germany and South Korea - with upwards of 45 million consumers estimated to now make all their voice calls from their mobile phone in these markets alone.

Among the first global surveys of FMS as a consumer trend, the research also suggests mobile could challenge fixed line connections for data access in the home, too. On average, those who claim they are certain or very likely to adopt a wireless service for data expect this to happen in 1 to 2 years. Interest is greatest among the young and those who already have broadband Internet access at home.

The research confirms consumer FMS is an ongoing evolution. The landline remains the connection of choice for longer calls from the home, with the exception of shorter calls to friends and to other mobile phones, although differences do emerge by market.

The rational motivations for maintaining a landline subscription focus on price perceptions, for example 69% of respondents in Britain considered cost to be the key reason for choosing fixed calls ahead of mobile calls, more than any other country. But, the need for a landline for data and greater perceived reliability of the landline phone are important criteria in the minds of US and German consumers.

Emotional reasons to keep a landline phone exert a surprisingly strong force on consumers. These centre on the association of the landline phone with the home and the "cosiness" of the call experience. The research reveals that in order to encourage greater call substitution at home the mobile phone needs to be strongly associated with value for money, good sound quality and reliable reception.

Regardless of some reservations, there exists a view among respondents that the future will inevitably be wireless. The perception is that wireless technology will improve, the quality and reliability issues will become less important and that data will be available through a wireless network for home Internet users. For these reasons the perceived value of the landline subscription is decreasing.

A perception of a higher price differential between a mobile and landline phone also needs to be addressed in all markets. However, in many instances respondents were unaware of the actual price differential between their landline and mobile phone. Several anticipated that, on comparing the total cost of their mobile subscription with the overall cost of their landline subscription, the price differential would be minimal and might actually favour the mobile.

A significant number, in particular in South Korea, consider they would not take out a landline

Subscription on moving house or flat. In fact amongst the South Korean sample, 65% of the respondents make all or most of their voice calls from a mobile phone.

Within each market however, there are demographic differences that should be considered when developing FMS marketing campaigns. It seems women are more likely to use landlines for the majority of their calls. Two groups can be identified: those who predominantly used landlines rather than mobiles were more likely to be women aged 35+ and home owners; and those who use landlines exclusively were more likely to be women and aged 50+.

The most fertile market for FMS is the young professional group, who use their mobile phone for most of their voice calls; are more likely to be male; middle to high income, and make a large volume of voice calls."

Posted to the site on 22nd October 2004