Wireless Trails Wired in Importance Survey
Despite recent trends noting the decline of wired line phone usage and spending, new research from TNS Telecoms indicates that more than a third (37%) of Americans say the wired line phone is the most important communications product in their household, followed by wireless phones and high-speed Internet, tied for second-most important at 27 percent.
The survey asked respondents to compare the importance of wired line phones, wireless phones, high-speed Internet, DVR, HDTV, PDA, video game systems and iPod/MP3 players in terms of their importance in their households.
While wired lines phones were ranked most important to all age ranges combined, high-speed Internet connection and wireless phones were the most important to consumers under age 45 (62% and 61% rated as important, respectively). Similar trends were also noticed among those households with over $50,000 in income.
"While attention is often focused on growth areas such as wireless and high-speed Internet, wired line phone service is still a critical tool for communications," remarked Charles White, senior vice president of TNS Telecoms. "Consumers rate their wired line phone as important for many reasons including that it is universally available and always reliable."
Additional results from TNS Telecom's quarterly study include a 6 percent increase from the previous quarter in the average amount spent per household on wireless telephone service, to $60.53 per month. During the same period, the average household spent $48.54 on video (cable TV/satellite), an increase of 2 percent. Wireless spending now makes up more than one-third (35%) of the household's share of wallet, while video spending, at 28 percent, comes in second.
In the past year, American households spent an additional 5 percent on all telecom services including video; total spending rose from $167.15 in Quarter 1, 2005 to $175.00 in Quarter 1, 2006.
| Company | Share of Household (%) | Change from Previous Quarter (%) | Share of Revenue (%) | Change from Previous Quarter (%) |
|---|---|---|---|---|
| Verizon Wireless | 28 | 0 | 30 | 0 |
| Cingular (inc. AT&T) | 30 | -1 | 28 | -1 |
| Sprint PCS | 10 | -1 | 11 | -1 |
| T-Mobile | 9 | 0 | 9 | 1 |
| ALLTEL Wireless | 5 | 0 | 5 | 0 |
| Nextel | 5 | 0 | 6 | 0 |
| Cellular One | 1 | 0 | 1 | 0 |
| Other | 13 | 1 | 10 | 1 |
Posted to the site on 27th June 2006
