Cell phones and VoIP are killing the regular old home phone business. Reviewing a new study from a Citigroup analyst, Barron's said, "The telcos continue to lose residential phone subscribers to both cable VoIP and wireless subscriptions at a steady 7%-8% a year."
The number of consumers who use only a wireless phone at home is expected to hit 27% in 2010. And the penetration of cable VoIP is expected to be 25% by then.
It might seem bad news for AT&T (NYSE: T) and Verizon (NYSE: VZ), but both do have large wireless businesses that should help offset attrition among home phone users. They are also selling new fiber-to-the-home broadband, which will also supplement revenue.
The news would also appear to be good for cable firms like Comcast (NASDAQ: CMCSA). Stocks in cable companies have been beaten down by concerns about competition in TV delivery from the phone companies. But VoIP revenue is a big, new source of revenue, and one that is growing fast.
The losers in all of this would seem to be companies like Qwest (NYSE: Q). Qwest has no cellular arm nor much of a wireless operation. Its shares have dropped from a 52-week high of $10.45 to $7.15, while most phone shares have gone up. Look for the drop to continue.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 8)
12-12-2007 @ 2:04PM
catusmoon said...
The only way they will get my reciever is to pry the hand set from my cold dead hand
12-12-2007 @ 2:17PM
cordova10ac said...
good maybe they will drop the rates on home phones and stop rippin everyone off.
12-12-2007 @ 5:14PM
mz said...
thats the very reason why i dropped my service. Constantly being ripped off by VERIZON, unexplainable phone charges, fluctuating phone bill (same plan, different charges each month), poor reception, the worst cutomer service, the worst in repsonse to repairs and the absolute WORST dsl service ever. The dsl service was constantly interrupted...when calling customer service (which happen to be in india???), you couldn't even understand the person you were trying to explain your issue too. In response to your problems, you could literally hear them reading answers from a written manual !!!
I WOULD RECOMMEND ANYONE WITH A CELL PHONE, TO MAKE IT YOUR HOME PHONE..THEN MAYBE THESE BIG NAME LANDLINE COMPANIES WOULD GET THE POINT !!!
12-12-2007 @ 6:33PM
Gil Davis said...
Yep, Life changes.
Why spend the money on a house phone when you are hardly ever there to begin with?
12-12-2007 @ 2:33PM
tracy said...
well who actually uses home phones anymore i havent in 5 years.i dont know who anyone would a cell is the same thing expect you got it everywhere you go unlike a home one that you can only take so far.the next thing they need to do to help get rid of them is to make the gates on apts go to your cell. i cant buzz people in but if they did that it would be a perfect world.
12-12-2007 @ 3:43PM
alan said...
Well, you have made some good points. However not everyone lives where there is a signal all of the time. I do have a cell phone and a land line. Why? Because I live in a rural area which is also very hilly. Unfortunately cell signals are pretty much line of sight so if you can't see an antenna the you don't have service. That means at home I don't have cell service and need a land line for emergencies.
Second I think we are bombarded enough with man made radio energy at this point, we are simply cooking ourselves at their convience.
12-12-2007 @ 3:58PM
Ernie said...
Only thing ,if you buy stuff over your phone ,remember it's a radio a scanner can pick up your credit card info as you send it out on your wireless!
12-12-2007 @ 4:01PM
toomuchwork00 said...
I LIVE IN AN APARTMENT COMPLEX IN SHREVEPORT LOUISIANA AND MY GATE ACCESS FOR VISITORS RING TO MY CELLPHONE BECAUSE I DO NOT HAVE A LAND LINE PHONE.
12-12-2007 @ 7:01PM
Kryssi said...
I use my home phone still. Cell phones are a last resort for me - the radiation from cellular/wireless waves causes stress to the body and I have the anxiety to prove it. (For example, everytime I walk into a business that uses wireless internet, I get mad headaches.) We're all FRYING ourselves for the sake of convenience.
I don't see how the home phone can become COMPLETELY obsolete since people are slowly becoming more wise to this fact. Cable companies that offer 3-in-1 packages (cable, internet, phone) surely won't be doing away with home phone services.
12-12-2007 @ 2:40PM
Carol said...
I have severe electrosensitivities ('microwave sickness', 'electromagnetic hypersensitivities'), and cell phones and wireless internet are making me sick - literally. I can't even go out in public for any length of time because it seems cell phones are everywhere. If this trend continues, my guess is that the 201 people on this EMF Refugee forum will grow exponentially soon.
http://health.groups.yahoo.com/group/emfrefugee/
http://health.groups.yahoo.com/group/IC-ESP/
If you are a cell phone or wifi user, you should read the Bioinitiative Report, a collection of over 2000 studies which would indicate that we are being overexposed.
http://www.bioinitiative.org/report/index.htm
I'm not kidding though - I got rid of my cordless phone even.
12-12-2007 @ 5:18PM
mz said...
in that case...please tell us how your sitting in front of a computer, blogging ?????????
12-12-2007 @ 2:39PM
kay said...
I use a land line because the cell services in the area I live in suck and cell phones don't work inside my house. DSL services are not offered in the area I live, so I chug along with my dial-up.
12-12-2007 @ 2:40PM
George said...
They are a bunch of thieving bastards anyway,verizon was charging me 180.00 a month for 2 home phones that I now bay cable 15 dollars a month for
12-13-2007 @ 12:31PM
Liz said...
No way am I surrending my land line. That's what THEY want us to do. Home phones are clearer with no distortion. I'm sticking with the old tried and true.
12-12-2007 @ 6:28PM
Kathy said...
I agree, Liz.... Cell phones constantly drop calls for no apparent reason (what if I were calling 911???) Everyone should have a land line in the event that your power goes out and you can't charge your cell phone or your cable goes out... at least a land line still has a connection or at the very least serves as a backup.
Besides, these cell companies charge against your "prime time" calling and cost an arm and a leg. They won't help you with faulty equipment because of the "contract" that binds you. Meanwhile, you're bound to the service contract, but they aren't held to theirs if the service is lousy. Go figure.
Corporate America. Hard at work to again SCREW the American taxpayers.....
12-12-2007 @ 6:36PM
Elle said...
MEEE TOOOO, LIZ!!!
12-12-2007 @ 2:53PM
Carol said...
Read this interview with Dr. Becker:
http://www.energyfields.org/science/becker.html
And this interview with Louis Slesin:
http://www.healthandenvironment.org/articles/homepage/2262
And the Freiburger Appeal, signed by doctors:
http://www.starweave.com/freiburger/
This trend is already causing an increase in disease across the board, so communicating the lazy way comes with a price.
12-12-2007 @ 2:55PM
tcjrdunk said...
Only reason I have a home phone still is because alarm companies require them. Otherwise I would not have one either. Cheaper to go with a cell phone.
12-13-2007 @ 10:42AM
LORI said...
I guess I am just the opposite. I have a cell phone to use when I travel (Tracfone which is really cheap). I rely on my home phone for all uses. My family and my employer always know how to get a hold of me, so I have no need of showing my self importance in carrying around a cell phone and having conversations about nothing that other people are subjected to. That is what I hate about cell phones is that so many people walk around and talk loudly on their cell phones and we have no choice but to suffer and listen to their conversations.
12-12-2007 @ 3:03PM
baldguy96 said...
get a phone jammer. My friend has one and they stops all that babbling from inconsiderat morons.