Penetration of mobile wireless services hits two-thirds of households

A record number of Canadians have access to cell phones at home, according to a report from the Canadian Wireless Telecommunications Association (CWTA) and Decima Research Inc., a fact that bodes well for the adoption of wireless data services. Two-thirds (64%) of Canadian households report having access to wireless phones – a significant increase since the last time Decima conducted the survey for the CWTA. In 2000, 44% of Canadian households said they had access to mobile devices. "When you have 64% of households adopting wireless technology, the backdrop is set for more advanced wireless applications, such as music, video and multimedia packages," says Rick Nadeau, VP at Decima. But of the survey respondents who don’t have wireless phones, just 16% say they are "very" or "somewhat" likely to acquire mobile devices in the next year. That’s down 6% from 2000 and down 9% compared to 1998. This suggests the wireless industry won’t grow as quickly or easily as it has in the past. "Future growth will continue to be driven by new households becoming first-time users in combination with an increased number of units among currently subscribed households," reads the report. Still, wireless carriers have plenty of opportunity to improve their subscriber base with only 17 million of Canada’s 33 million people having cell phones, or slightly more than 50% penetration. "There are still a lot of Canadians out there who don’t have wireless devices," Nadeau says, noting that conversely a growing number of households have multiple devices. "We are seeing that wireless access is becoming ‘deeper’ within the household. It seems to have a visceral effect: if Dad has one and Mom has one, then junior has one." Among people who have access to wireless phones at home, 57% said there’s more than one phone lurking about the house. This "represents a significant shift in the wireless-phone household," reads the report. In 2000, just 31% said their houses contained more than one mobile handset. Decima also measured the likelihood of replacing wireline service with wireless. The survey reveals that nearly one in five cell phone subscribers (17%) said they would likely give up their landline for wireless service. But that number is "identical" to the figure Decima got when the firm asked the same question six years ago. Is this concept of wireless substitution failing to gain traction? Not necessarily, Nadeau says. "There are 20% more wireless users compared to 2000. In terms of aggregate numbers, we’re seeing a substantial amount of the population…shopping the idea of dropping their wireline services for wireless." But Canadians are cautious about wireless substitution, he adds. "There’s still some degree of trepidation. That wireline is almost like a lifeline to the outside world. Canadians are not going to be dropping their wireline services on a whim. They’ll investigate all of the dimensions of going pure wireless. Certainly for households with multiple members, it’s a difficult situation. Whose line becomes the line? There are logistical obstacles," says Nadeau. According to the report, 82% of respondents said their homes have just one traditional phone line. Six years ago, 66% of respondents had only one phone line, a time when the multi-line home was more common. Decima says high-speed Internet service and VoIP are also eating into the appetite for supplementary traditional lines. As well, "there remains…the possibility that households may have reduced the number of traditional lines because of increased use of wireless services in the home," the report says. The survey yielded some unusual results. "I was surprised by the pervasiveness of the technology across the various socio-economic segments of the population," Nadeau says. In the late-1990s, 17 to 18% of households earning less than $30,000 per year had access to cell phones. "Over the last six years, we’ve seen penetration in that income bracket double from 18 to 36%. Certainly you’d expect growth in homes earning more than $60,000, and solid growth in the $30,000 to $60,000 income bracket, which we’re seeing. But all income brackets – and all age groups as well – are contributing to this ongoing success story that is wireless in Canada," he adds. Decima asked people what activities, other than voice calls, they would like to do with their wireless phones. Text messaging was the most popular feature; picture taking and downloading music were also popular. But many more phone owners and intenders – people who plan to acquire phones – said they would do nothing other than make calls on their phones and their services are fine as is. What does this tell us about the new multimedia applications that wireless service providers are starting to sell? Nadeau says the market may be ripe for these kinds of features, no matter what the numbers might indicate. "If we’d asked the question differently and said, ‘How interesting or appealing to you is it to be able to access video over your wireless device?’ we’d see a lot of interest." Decima conducted the survey on the CWTA’s behalf in April, asking 1,510 Canadians aged 18 and older for their opinions. The results of the study can be considered accurate within a margin error of +/-2.5 at the 95% confidence level.

Penetration of mobile wireless services hits two-thirds of households

News | 05/18/2006 4:00 am EDT

To keep reading, get a free trial.

Already a Subscriber?

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us