Cell Phone Spending To Surpass Land Lines In 2007

December 18, 2007 – 9:06 am

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You knew it would happen someday. And that day appears to be now. Americans now spend more money on cell phones and mobile service than they do for so-called “land lines”. The trend has been full steam for many years now, and now it’s official.

The most recent government data show that households spent $524, on average, on cell phone bills in 2006, compared with $542 for residential and pay-phone services. By now, though, consumers almost certainly spend more on their cell phone bills, several telecom industry analysts and officials said.

“What we’re finding is there’s a huge move of people giving up their land line service altogether and using cell phones exclusively,” said Allyn Hall, consumer research director for market research firm In-Stat.

As recently as 2001, U.S. households spent three times as much on residential phone services as they did on cell phones. But the expansion of wireless networks has made cell phones more convenient, and a wider menu of services, including text messaging, video and music, has made it easier for consumers to spend money via their cell phone

When including corporate spending, this barrier was probably passed several years ago maintain several experts. Companies like AT&T have been expecting and preparing for this day for ten years.

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