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Home Phones Becoming An Expensive Luxury

A recent report by Nielsen has indicated that more and more Americans are hanging up their landlines in favor of sole reliance on their mobile phones....

Jeff Squires
Jeff Squires on September 19, 2008.

A recent report by Nielsen has indicated that more and more Americans are hanging up their landlines in favor of sole reliance on their mobile phones. The report showed that 17% of American households have hung-up their landlines for good – and not surprisingly, it has predominantly been the young and the poor. Nearly two-thirds of those are under 35 and 46% earn under $50,000 a year.

The NYT explains the financial savings:

The average home phone line costs about $40 a month. The study found that people without a home phone line use 40 percent more minutes on their wireless phones, but this only raises their cellphone bill by 10 percent, to $76 a month. (Why so little? Because most of the increased gabbing is for usage that is free under the typical plan: nights, weekends and calls to other users of your cellphone company.)

The benefits are greatest for single people, who have only one cell line. They wind up saving $33 a month. A couple with two cellphones still saves $26 a month dropping the land line. Families with chatty teenagers with cellphones save less.

NYT: Snip! Nearly One-Fifth of Homes Have No Landline

Thinking...