It was not bad enough that the cable companies have been coming after telephone landline business with VoIP. And, doing it with some success. Comcast (CMCSA) added over 500,000 VoIP customers last quarter.
Now it would appear that consumers are dropping landline phones to go exclusively to cell phones. So, AT&T (T) Wireless may add a cell customer but lose that same person’s landline revenue.
Twelve percent of adults use only a cell phone. And, a quarter of people ages 18 to 24 have a cell but no landline service.
The figures mean that telecom companies, many of them trading at 52-week highs, must rely even more on their new fiber initiatives to bring in revenue from residential customers who want a TV, broadband, and voice bundle.
But, competing with yourself can make growth difficult even with the introduction of new products. The erosion of landline business may just be happening too fast.
Douglas A. McIntyre
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