Cellular usage displacing wireline usage, Decima and Bell survey finds

Wireline telephone displacement by wireless service seems to be a growing trend, according to new research that shows a substantial number of Canadians are using their cell phone in the home. A new study done by Decima Research Inc. and Bell Canada and made available to Report on Wireless indicates that about one-fifth of Canadians (21%) use their cell phone in lieu of their landline phone in their homes. Statistics Canada estimates that approximately 2% of Canadian homes, or about 240,000, are wireless only. "Based on their estimates, on average, 80% of the time spent on cellular calls is for calls made or received when outside of the home and 20% from within the home," states a comprehensive report summarizing the survey’s findings. "Thus, one can conclude that 20% of the time spent on personal cellular calls could be made and/or received from a wireline telephone in the home and therefore wireline usage is being substituted by cellular usage." The in-depth study is based on a tele-phone survey of 1,012 Canadian residential wireline telephone customers conducted this summer. The study was done to better understand the degree to which Canadians consider and use alternatives to wireline telephony when communicating and to obtain Canadians’ views regarding competition in the market. The report presents research results nationally and by three regions: the West, Quebec/Ontario, and Atlantic Canada. Telecommunications decision-makers within the home who use a cellular phone for personal reasons were asked what it would take for them to discontinue their wireline service to rely solely on their cellular phone to make and/or receive calls within the home. "Close to half (46%) of respondents said there was nothing in particular that would incite them to discontinue their wireline service, while another third (34%) said cellular rates would have to be less expensive before they would consider dropping their wireline service," the report states. Survey respondents also indicated that they would consider dropping their wireline service if wireless service offered free or unlimited minutes, better packages, better or cheaper long distance rates, flat rates with no restrictions, or other incentives. The study found that based on these responses, price is an important factor in deterring users from discontinuing their wireline service. Technological drawbacks were also cited as reasons for not dropping wireline service, including reliability, voice quality, reception and coverage, battery issues, and others. However, the report notes that as technology advances over the next few years, "it may have the affect of inciting people to drop their wireline service in favour of cellular." In-home wireless usage high The study also shows that nearly half (49%) of cell phone users "sometimes" use their device to make and receive calls from within their home. Extrapolating for the entire respondent base, Decima estimates that "21% of Canadians use a cellular phone, at least some of the time, instead of a home wireline telephone" in the household. The increased use of cellular within the home is also having a detrimental effect on home wireline usage, the study notes. "All cell phone users were asked to what extent they felt the use of their cellular had reduced the use of traditional wireline in their home. More than one-third (36%) said that cellular had reduced their usage of wireline to a large extent (7%) or to some extent (29%)," the report states. Digging deeper into users’ cell phone habits, the study found that making or receiving cell phone calls within the home occurs regularly. One in five (22%) respondents who use a cell phone indicated that this happens on a daily basis and another 35% said it happens a few times a week. Asking those who indicated that they make or receive a few calls a month at home using their cell phone why they did so, survey respondents overwhelmingly (68%) said the traditional phone line was tied up. Twelve per cent also noted that the local calling area is greater with the cell phone than the traditional wireline phone. Regardless of the reason given for using a cell phone in the home, the research reinforces the idea that cellular is also being used as a substitute for a second residential phone line. SMS use by Canadians still low Short messaging service (SMS), commonly referred to as text messaging, usage is still low in Canada, according to the research. Of all survey respondents who use a cell phone, 14% indicated that they’d sent and/or received text messages on their cell phone. This translates into 6% of all Canadians. As might be expected, younger Canadians are more likely to use SMS. The report notes that 30% of those aged 13 to 24 who use a cell phone indicated that they have sent and/or received text messages. Despite the low level of SMS use by Canadians, figures from the Canadian Wireless Telecommunications Association (CWTA) demonstrate that overall SMS traffic is on the rise, and has been since Canada’s wireless operators introduced inter-carrier text messaging in April 2002. The operators announced the agreement in November 2001 (RoW, Nov. 13/01). The CWTA is now reporting that Canadians now send more than 800,000 text messages daily. The survey was conducted between July 24 and August 4, 2003. Results are considered accurate within +/-3.1%, 19 times out of 20. A PDF copy of the full research report will soon be made available to Decima Publishing subscribers and other visitors to Decima Publishing’s web site. Check frequently for a link to the report.

Cellular usage displacing wireline usage, Decima and Bell survey finds

News | October 21, 2003

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