BOSTON--(BUSINESS WIRE)--Sept. 12, 2005--Yankee Group today revealed that wireless substitution thrives, substantially displacing wireline services and leaving fixed-mobile convergence far behind in an embryonic state of development. According to Yankee Group's wireless global practice leader Keith Mallinson--who will include the commercial impact of fixed-mobile convergence versus wireless substitution in a panel session at the 3G CDMA Americas Conference on September 13--low prices, in-network calling and family plans all influence the rising number of people hanging up on landlines. They are using home phones less frequently and many are "cutting the cord" entirely.

In the past 5 years, wireless subscribers and wireless minutes used have grown enormously to a penetration level of 65.4% and 754 minutes per month per subscriber, respectively, by the second quarter of 2005. With more than 95% of the US population exposed to broad wireless network coverage, wireless substitution is the easiest implementation of seamless mobility, influencing consumer decisions to completely displace wireline services. The high saturation of wireless service offerings by the nation's six leading wireless carriers has also contributed to the trend of displacing traditional wireline services.

I haven't had a landline for more than a month since early 2000, and then only because one was in my dorm room. 65.4% penetration is still below a lot of the world.