Cell Phones Knocking Down Land Line Spend


cellphonefuture.jpgThis past year was officially the first calendar year that U.S. homes spent more money on cell phone services according to industry and government officials.

The Associated Press stated that recent government data shows that households spent $524, on average, on cell phone bills in 2006 against the $542 for residential and pay-phone services. However there is the thought that by this point, more has been spent on mobile phones.

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

In 2001, U.S. households reportedly spent three times as much on residential phones than cellular. The improvements made to this technology and features such as text messaging, has created an increased market to spend money on your cell phone. This fact has also lured a throng of advertisers and investors to focus on the mobile devices.

“Frankly, I’d be shocked if (households) don’t spend more on cell phones at this point,” remarked Andrew Arthur, VP of market solutions at Mediamark Research & Intelligence to AP.

It is estimated that while there are 170 million land lines throughout the country, there are almost 250 million cell phones (including both corporate and residential use).

The implications of this growth are numerous for mobile advertisers. Although it is not as quickly moving compared to computer online advertising, studies have shown that frequent use and increasing affordability of mobile phones and their features, attract a wide range of people and demographics not easily targeted online.


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