2007 Sees Wireless Spending Outstrip Landlines

prostoalex writes "Each December the Bureau of Labor Statistics prepares a report on telecommunications spending among US households. They analyze the previous year's data, so their most recent release says that in 2006 the average US household spent $542 on their landline, and $524 on their wireless bill. The way the curves are headed, 2007 is likely to become the first year when wireless spending will surpass landline spending. 'To be sure, when corporate cell-phone use is counted, overall U.S. spending surpassed land line spending several years ago, analysts said.'"

Comments

Only calls on landline were telemarkers

[Maxo-Texas]

I reached a point three years ago where the only calls I got on my landline any more were telemarketers.
So I cancelled it and went to a $55 a month plan with rollover minutes. I finally exceeded that in August ($127! Ouchee!) and had to go to a $65 a month plan.

I recently got a $16 a month AT&T line just so I could find my phone when I lose it tho. I leave the ringer off and it is good for 25 outgoing calls. If i get a call when I am off plan that looks like it will be long, I take the call on the land line. This is helpful during the holidays when I am off a lot during off-plan hours.

Re:Guess I'm a meiser

[Hal_Porter]

In Europe we have Pay As You Go SIMs. You buy one for say $30 and it comes with $25 worth of credit and often some bundled text messages. When you run out, you buy a voucher and top it up. The killer thing is that you only pay for calls, there is no monthly fee. Originally calls were more expensive, but competition has forced down prices. And if you have an unlocked phone which cost a bit more than locked ones but are usually available, when you go abroad you just buy a local SIM and avoid roaming charges.

In fact if you read industry internal stuff you find phrases like this
http://www.ovum.com/news/euronews.asp?id=4326

It is likely the increase of prepaid customers contributed to the decline in data ARPU, which was lower year-on-year at 74 Euros (annual figure). ARPU is "Average Revenue Per User". So Pre Pay is cheaper. From the perspective of the telcos, sometimes it is disasterously so

http://www.fin24.co.za/articles/default/display_article.aspx?ArticleId=1518-24_2220175

Vodacom said in a statement that it is the group's policy to disconnect inactive prepaid SIM cards after seven months without a revenue generating activity on the Vodacom network. So the ARPU for some pre paid customers was literally zero. Presumably there's some cost to keeping them connected, so Vodafone was making a loss.