Nearly 40% of consumers ready to cut the cord with fixed line telephony

Date: Fri, 03/12/2010 - 16:12 Source: Airvana PR department

A You Gov survey of 2,000 UK consumers has revealed that 39 percent of the population would use their mobile as their sole home telephony service if the quality was the equivalent, if not better, than the traditional landline. Survey also revealed that many homes have already given up their landline

Nearly 40% of consumers ready to cut the cord with fixed line telephony Sanjeev Verma, Co-founder and VP of Business Development, at Airvana

A significant segment of consumers that are willing to dispense with fixed line telephony altogether are 18-24 year olds, with 59 per cent of that age group stating that they would be prepared to make the switch to mobile only telephony in the home.
The research conducted on behalf of Airvana, the mobile broadband equipment provider, reveals a significant threat to fixed line operators and an opportunity for mobile operators. By dropping their fixed line connection the consumer will be receiving all of their telephony services from a single wireless service provider. The consolidation of all the home telephony services provides mobile operators with the opportunity to establish a longer term relationship with the consumer by offering a combined voice and data plan.
However, as more and more consumers ditch their landline in favour of the mobile phone, there will be more pressure on mobile phone networks to provide coverage for voice, data and mobile broadband.
This is the view of Sanjeev Verma, Co-founder and VP of Business Development, at Airvana, who believes the femtocell, a miniature base station that provides 3G coverage in the home, can provide consumers with a complete home telephony solution without losing the convenience of having a home phone. According to Verma the trend of ‘cutting the cord’ is already prevalent in the U.S. with consumers adopting the mobile phone over the landline, and in most cases dispensing with the landline altogether, with one in four households becoming entirely dependent on mobile.
The survey also revealed further opportunity for operators to extend (and monetise) the relationship with their customers if they can consistently deliver affordable and fast mobile data access in the home and applications optimised for the handset.

By operators achieving this, the survey revealed:
•         47 per cent of consumers stated that they would use a much wider range of mobile applications and services in the
•         The number of consumers currently using mobile devices to surf the web would increase from 22 percent to 38 percent
•         The number of consumers using social media applications on their device would increase from 10 percent to 21 percent

The survey also revealed that consumers would be prepared to use a range of new mobile applications designed for use in the home. Results include:
• 27 percent of consumers are keen to use a ‘Family Billboard’, featuring a range of social and multimedia services to keep the busy family in touch
•         26 percent of consumers are keen to replace the traditional home phone with a ‘Virtual Home Number’ that routes all calls to mobiles in the home


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