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In-Stat survey says...
Posted: 06-Feb-2006 [Source: In-Stat]

[In-Stat surveys released today show 1) continued wireline erosion expecteded to accelerate and 2) there is increased consumer disappointment with the quality and costs of using camera phones.]

Scottsdale, AZ -- According to In-Stat, nearly 20% of respondents that use wireless voice service plan to drop landline phone service. Furthermore, as an indication of future wireline erosion, wireless usage continues to increase in proportion to wireline usage, particularly among 18- to 24-year-olds.

"Compared to 2004 survey results, wireless has increased from one-quarter of home phone minutes to nearly one-third in 2005," said Bryan Van Dussen, a research director with In-Stat. "With this increase in wireless usage comes an increased displacement of landline use."

A recent report by In-Stat found the following:

* Long-distance usage has been particularly affected, with nearly half of respondents indicating decreased landline usage, and the average decrease being 60%.

* Certain population segments are more inclined to "cut-the-cord," with the youth market and lower-income respondents being more inclined to make this transition.

* Those making under $50,000 are more apt to cancel their landline versus those making over $50,000.

In another survey report, In-Stat reports the camera is considered by many users to be one of the most desirable features in wireless handsets, yet, evidence suggests that only a tiny percentage of camera phones are used regularly to transmit pictures or to store for later use. Less than a third of camera phone owners surveyed indicated that they share picture messages with friends.

"People who haven't yet purchased camera phones are very enthusiastic about all the uses for their images," said David Chamberlain, In-Stat analyst. "However, once they start using their new phones, they are turned off by perceived poor picture quality, slow network speeds, and the difficulty of creating and sending pictures. Our survey found that very few pictures actually make their way out of the handset to be shared with others."

A recent report by In-Stat found the following:

* Those who now use camera or camcorder phones say they are less likely to replace their phones in the near future than other users.

* There will be from 300-850 million mobile users who will send at least one image per month across the carrier network by 2010.

* Only one in 20 camera phone users prints pictures or stores them on carrier-provided Web sites. 28% of current camera phone owners actually share pictures using messaging service, compared with nearly 60% who hoped to before purchasing their camera phones.

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