Credit crunch drives shift to mobiles

US consumers are ditching landline phones in favour of mobiles

Global economic uncertainty and the effects of the credit crunch are accelerating the rate at which consumers ditch landline phones, new research suggests.

A recent IDC survey of more than 1,500 US households found that consumers who had abandoned traditional wired telephones cited the cost of keeping a fixed and wireless phone as the number one reason for axing their landline service.

The research noted that the number of US customers without a landline has increased every year since 2004.

The number of customers who have never subscribed to a landline more than doubled from 2007-2008, and 16 per cent of the US population is now without a landline.

IDC found that cost-conscious younger consumers are more than twice as likely not to subscribe to both wire-line and cellular services.

"Wire-line displacement by wireless will continue to increase due to growing comfort with cutting the cord and the cost savings," said Irene Berlinsky, a research analyst for multi-play services at IDC.

"This will accelerate in the near future as consumers tighten their belts to ride out the economic downturn."