Level of wireless substitution increasing among cell phone users: Bell study

A growing number of Canadian cell phone users are choosing to use their devices in the home, according to new research from Bell Canada. The data indicates that while the amount of time spent making or receiving cell phone calls in the home has remained constant in the past year (20%), there has been a significant increase in the number of Canadians who "sometimes use their cellular phone to make and receive calls from within their home" compared to previous studies. Research results show that 58% of cell phone users make or receive cell phone calls in the home compared to 47% who said they did in a survey conducted in the winter of 2004 (see chart below for comparison of the last three study periods). "Expressing results on the total base of respondents, one can estimate that 26% of Canadians use a cellular phone, at least some of the time, instead of a home wireline telephone," reads the study. This level compares to 21% from the same survey conducted last summer. (A detailed analysis of last summer’s results can be found in the Oct. 21/03 issue of Report on Wireless.) The research is part of a new report, Canadians’ Usage and Views Regarding Telecommunications, conducted for Bell Canada by Decima Research Inc. in the summer of 2004 (Decima Research is affiliated with Report on Wireless publisher Decima Reports Inc.). It highlights a continuing decrease in landline usage as more and more Canadians use cell phones and other technologies in lieu of the traditional home telephone. Not only are more Canadians using their cell phones in the home, but the results show that more Canadians are choosing to rather than being forced to. Respondents were asked why they used the cell phone in the home, and comparing 2003 and 2004 data reveals no difference in terms of the top response - the traditional phone was tied up. Comparing the percentage of respondents indicating the various reasons for using the cell phone in the home reveals a significant shift in consumer cell phone usage. In 2003, 68% of cell phone users gave the "traditional phone is tied up" reason for using their cell phone in the home. That number plummeted to only 44% in the 2004 data. Digging deeper, the study also shows that the number while 56% of cell phone users noted in 2003 the phone was tied up because someone was talking on it, only 35% did so in the 2004 survey. Interest in cutting the cord remains constantDespite recent research showing a greater number of Canadians have and will cut the cord on traditional wireline service to have a wireless-only household, the Bell-Decima research shows that about half (46%) of telecommunications service decision-makers have no intention of discontinuing traditional phone service. Some figures peg the number of wireless-only households at nearly 5% by year’s end. NBI/Michael Sone Associates noted in a recent report that wireless-only households could range between 3.7% and 5.1%. Research from Ericsson Canada Inc. pegs wireless-only households in Canada at about 4% (RoW, Dec. 2/04). More than a third (35%) of survey respondents said that wireless rates would have to be less expensive to incite them to discontinue their wireline service. "Therefore, if cellular prices were to decrease (or, by inference, wireline prices were to increase), many telecom-decision-makers indicated they would discontinue their traditional wireline service and rely solely on their cellular for calls they make and/or receive at home," suggests the research. Long distance on the rise with wirelessThe research indicates that not only are a greater number of cell phone owners making and receiving more local calls in the home, they are also spending more time on their cell phone for long distance calls. While the average amount of time between local and long distance has remained constant when comparing 2003 and 2004 data, a significantly fewer number of cell phone users say that all their minutes are for local calls. Nearly half (49%) of 2004 survey respondents indicate all cellular minutes are for local calls, a substantial decrease compared to 2003 data in which 63% indicated all their cellular minutes were for local calls. "Therefore, in the summer 2004 survey, more cellular users are making long distance calls with their cellular phone," highlights the report. The general theme to the report concludes that alternative technologies such as wireless, Voice over IP, the Internet and short messaging services have caused a shift among Canadians’ use of traditional wireline services in the home. At a high level, about one-third (34%) of cell phone users say that they feel their cellular usage habits have reduced the use of traditional wireline in the home, with 8% saying to a large extent and 26% to some extent. These levels haven’t changed from 2003 data.

Level of wireless substitution increasing among cell phone users: Bell study

News | December 15, 2004

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