Young Adults Leading The Way Towards ‘Cutting The Cord’.

A recent analysis by Integras, a division of market research leader Claritas Inc., showed that the world of wireless-only telephone users is dominated by twentysomethings, and the trend is growing.

Using data collected from the Convergence Audit , Integras’ acclaimed survey for telecommunications, the analysis involved a group of wireless phone users who did not have a local, landline service provider, as well as those who had never had local phone service and those who cancelled this type service after signing up for wireless service. The group was then compared at two different points in time (2001 and 2003) to determine if any changes in usage occurred.

Trends in Wireless-Only Service by Age of Subscriber

Though the analysis showed that young adults were more likely to be wireless-only subscribers in both 2001 and 2003, changes surrounding this trend became more dramatic during these two particular years as consumers under 30 years old were about two times more likely to be wireless-only in 2001 and three and a half times more likely in 2003.

In addition, in 2001 the age range for those more likely than average to have wireless-only service extended to all age ranges below 54 years old. By 2003 that had changed and only those under 35 were morel likely than average to be wireless-only customers.

Commented Integras Vice President David Tedrow, “these results clearly demonstrate a real opportunity for telecommunications providers to market specific products that appeal to this segment’s truly “wireless” lifestyle.”

Wireless-Only Service by Income

Integras also analyzed how wireless-only customers differed by income and found those earning less than $40,000 a year in 2003 dominated the wireless-only universe, particularly those with incomes under $10,000. Based on the age distribution figures, this income distribution follows since many adults under 25 are not yet employed full time.

Conversely, when wireless-only service first became a viable option in 2001 high-income earners demonstrated a willingness to test it. In fact, people making over $200,000 a year were the second most likely group to be wireless-only customers. The advantages, though, (one provider, a single bill, less hassle, etc.) apparently did not measure up to expectations (dropped signals, unclear sound, etc.) and by 2003 this group was the least likely to be wireless-only customers.

Percent of Home Owners with Wireless-Only Service

Given the age range of the typical wireless-only customer, the findings in this category were not surprising. They showed that most do not own a home, but, rather, are more likely to rent (either an apartment or a room) or live in some type of group quarters, such as an on campus dormitory or military group housing. In contrast, homeowners account for about 65 percent of all households in the general population.

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