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As technology gets cheaper, consumers eliminate landlines, stick to cell phones
[December 27, 2005]

As technology gets cheaper, consumers eliminate landlines, stick to cell phones


(Janesville Gazette, The (Janesville, WI) (KRT)) Dec. 27--For Kevin Gintner's family of four, it came down to convenience when they decided to drop their landline phone two years ago.

Each member of the family, including two children--one in high school and one in middle school--has their own cell phone.

"They definitely need to be in contact, whether it's for rides or just so you know where they are," Gintner said. "We can get a hold of everyone all the time."

Many consumers--particularly younger age groups, singles and those who rent their homes--are latching onto their cell phones and disconnecting landlines, according to a recent study by the Consumer Electronics Association.

Seventeen percent of consumers who purchased wireless phones during a recent 90-day period reported using their wireless phones exclusively, the study found.

"There's really no use for a landline anymore," said Rachel Schneberger, manager of Sprint in the Janesville Mall.

Schneberger estimates about 75 percent of her customers do not have a landline, mainly because of the additional cost and lack of use.

More than an estimated 200 million Americans are wireless subscribers, according to CTIA-The Wireless Association, an international association for the wireless telecommunications industry.

In Wisconsin alone, AT&T lost one out of every three residential lines from 2000 to 2004, said Caryn Candisky, spokeswoman for AT&T in Wisconsin.

That's about 340,000 lines lost in Wisconsin in four years to all forms of competition, she said. AT&T recently merged with SBC, the incumbent telecom carrier in Wisconsin.

"We are feeling the competition like never before," Candisky said. "Not only from cellular services but also from cable and other telecommunications companies."

Money is one of the biggest factors driving consumers to drop their landlines, cell phone providers say. Most cell phone users don't use their landline long-distance service, so the extra monthly bill is unneeded.

"Janesville is the perfect market," said Gintner, manager of Verizon Wireless in Janesville. "We're a very blue-collar town. We're looking to save as much money as we can, and when you weigh out the difference--it just makes sense--it's less money and everyone stays connected."



AT&T acknowledges the trend, which will continue to grow, Candisky said. With more choices and competition than ever before, consumers are benefiting more than anything, she said.

To respond to the marketplace demands, AT&T offers bundles of service, Candisky said. For example, a customer could bundle their AT&T landline service with a cell phone plan from Cingular, its wireless partner, for better prices and a single bill, she said.


"Many find that--it not only helps with pricing and value of service, but it helps with the convenience of communication," she said.

Phone service through the Internet is also emerging, retailers say. Other products, however, are making it easier for people hesitant to cut the cord.

Products such as the Dock-N-Talk, available online for $139.99, allow users to dock their cell phone and use their normal corded or cordless phones to make and receive cell phone calls.

While such products have yet to fly off the shelves, Schneberger said she doesn't see landlines existing in homes in the future.

"There's just something out there for everybody (with cell phones)," she said, "because it's easier to customize to your needs."

But the extreme reliability of landlines will keep them around, AT&T spokeswoman Sarah Silva said.

"There's always going to be a need for that wire line network," she said. "We really see this as an integration of wire line and wireless."

Wireless devices are still susceptible to dead batteries or tower damage, Silva said, citing how landline phones were "the only surefire way of communication" when Hurricanes Katrina and Rita struck.

"We find that having a wire line phone has an added benefit of security and reliability," Silva said.

With the future unclear, AT&T's convergence approach is attempting to offer the best variety and prices, Silva said.

"That's where we see the best opportunities to integrate these services where customers can still have all the advantages of a wire line phone," she said.

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