Wireless boom continues

Consumer wireless services are increasing in popularity to the extent that they are having a direct, measurable impact on wireline services, says a recent study by IDC.

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By  Matthew Southwell Published  January 9, 2002

Consumer wireless services are increasing in popularity to the extent that they are having a direct, measurable impact on wireline services, says a recent study by IDC.

By yearend 2001, the analyst house claims, 10 million access lines were displaced by wireless, primarily by consumers choosing a wireless service over installing an additional access line at home.

The trend is expected to continue as IDC predicts that the overall displacement of wireline services will accelerate even more in 2002, resulting in an additional 10 million access lines replaced by wireless by 2005 – something that will present both great market opportunities for wireless carriers and a major threat to wireline carriers.

The key drivers behind this trend, say analysts, are the continuing decline in wireless pricing and the ever-improving geographic coverage wireless networks obtain.

“Wireless use is rapidly increasing in traditional wireline environments such as homes and work locations with access lines. The primary reason for this dramatic growth is that wireless service pricing is rapidly approaching wireline service pricing,” says Scott Ellison, program director, wireless and mobile communications at IDC.

“A secondary reason is cultural: Wireless use is now so pervasive that it is seen as a standard and acceptable way to communicate in most environments,” he adds.

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