Whats the expected impact of landline portability?
Allowing landline-to-wireless portability is a big blow to local phone companies. Since 2000, the number of landlines in the U.S. has declined by nearly 3%, according to the FCC, and some analysts predict that process will quicken with full portability. The May survey from the Management Network Group found that 17% of respondents said they would definitely or probably switch their current home phone to a cellphone if they could keep their home number. The survey of 2,700 cellphone users had a margin of error of plus or minus 3%. Furthermore, analysts estimate landline companies will have to invest hundreds of millions of dollars in their telecom equipment to enable the number transfers. That’s money they’d be spending to, in effect, hasten customer defections, since few cellphone users are expected to switch their wireless numbers to landlines.
