Telephones in the Recession

Verizon Wireline

New FCC statistics show that when times turn tough customers get rid of the home phone line and hold on to their cell phone. The acceleration of losses in “primary access lines” (wired phones) is affecting all carriers. This was easy, high margin money for telephone companies and now it is ending.

This entry was posted in Business, Recession, Wall Street and tagged . Bookmark the permalink.

0 Responses to Telephones in the Recession

  1. William Jackson says:

    I think the move towards cell phone only is a trend related to technology and the younger generation that is occurring unrelated to the economy. Although, it could be accelerated due to tightening budgets.

  2. Zhirem says:

    I think the trend towards cell-only use was predicated by the rise in getting calls on published land-line numbers where telemarketers would interrupt your dinner. I know that is the reason why I don’t have a land-line…

    – Zhirem

  3. Hugo says:

    Makes sense that it would be among the most disposable expenses for belt-tightening families, though. I remember being taught similar stats on the effect of economic downturns on newspaper subscriptions.

    Movie attendance used to go up in hard times, though. If not bread, circuses; if not info, tainment.

  4. Pingback: Knowing Value | meme patch

  5. Bryce says:

    Where I live a land line costs about $45.

    A basic cell phone plan costs about $45, includes 450 minutes, works nearly anywhere, and is free to call anyone on the same network.

    I think some companies are just starting to offer such packages on land lines around here to be able to compete with cell phones (which is amusing because of how little Verizon Wireless seems to be integrated with their land line division).

  6. Captison says:

    You better be getting more than 450 minutes for $45! I have a $39.99/month plan with T-mobile and get 1000 minutes (more than enough for my needs), unlimited nights and weekends, and I get complimentary international connection and a low per-minute fee for calling Europe. With a plan like that, why would I keep a land line?

Leave a Reply