May 5, 2005

Cord-Cutting Reaches One In 20 Mobile Households

This is the second document in the "State Of Mobile 2005" series.

by Charles S. Golvin

with Chris Charron, Sally M. Cohen

Executive Summary (This is a document excerpt)

Cord-cutting — the practice of giving up a fixed phone line in favor of exclusive use of a wirelessphone — increased 20% in 2004, and for every current cord-cutter, there are two more mobile users who plan to join their ranks in the future. Those without a landline are younger and more likely to be single, but they spend heavily on wireless — twice as much of their annual income goes to their cellular provider compared with the average mobile household. While these users are unlikely to come back to their local telcos in the future, there is a modicum of good news for incumbents: Enthusiasm among future cord-cutters has waned slightly.

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