Wireless displacement swamping convergence

Wireless displacement of wireline services is massive trend in the U.S. that is swamping any service provider push to fixed-mobile convergence, according to a Yankee Group study being released at the 3G CDMA Americas Conference this week.

Yankee Group's wireless global practice leader Keith Mallinson will report this week that unlimited calling, family plans and in-network calling are combining to make it easier and cheaper for consumers to cut the wireline cord. The trend is so strong that bundled services, including wireline and wireless convergence, isn’t likely to reverse the displacement trend before 2010.

“Wireless substitution for wireline residential phone service is a significant and unstoppable trend,” said Mallinson, whose reported is titled Personal “Wireless Calling Surpasses Wireline Calling: A Wireless Substitution Update.” “Carriers should aim to capitalize on the movement toward personal communications through one device on an anywhere, anytime basis rather than resist the inevitable shift away from wireline communications.”

The trend is especially strong among users between 18 and 24 years old and those with household incomes of less than $25,000.

About 65.4% of U.S. consumers are wireless users and they consume 754 minutes of wireless user per month each, according to Yankee Group. The breadth of wireless coverage makes it easier to consumers to use wireless to displace wireline, the study concluded.