Consumers Abandon Landlines & Increase Mobile Call Volumes.

A new Yankee Group Report predicts U.S. mobile subscribers will increase by 50% to 200 million by yearend 2006. Mobile phones will dominate personal calling and severely cannibalize landline minutes of use.

“Wireline replacement is a $50 billion opportunity in what we expect to be a $110 billion mobile market in 2006,” says Keith Mallinson, executive vice president of the Yankee Group’s Wireless/Mobile Research. “Even more significant than the 3% of people who have actually cut the cord and have a mobile as their only phone, is the major migration of personal calling minutes to mobile phones by those who retain landlines but use them less.”

Nearly 30% of total personal (i.e. non-business) calling minutes in the U.S. are already on mobile phones as of the third quarter of 2002, and this will grow to more than 50% by 2006. Despite market growth, intense price-based competition dictates that several minor wireless carriers will be acquired or will fail, and at least two national players must be eliminated before adequate financial returns can be achieved.

For more information at http://www.yankeegroup.com