Homes are giving up their fixed-line Phones

New MORI research reveals that consumers expect voice and data at home to be mainly wireless, and that many expect this could happen in under two years.

Global research by MORI, conducted for Nokia, has identified a strong trend for consumers to move from their fixed-line phones to use their mobile handsets for all or most of their voice calls. Fixed-to-Mobile Substitution (FMS) is occurring across the four major markets surveyed - Great Britain, USA, Germany and South Korea - with more than 45M people estimated to now make all their voice calls from their mobile phone in these areas.

Among the first global surveys of FMS as a consumer trend, the research also suggests mobile could challenge fixed-line connections for data access in the home, too. On average, those who claim they are certain or very likely to adopt a wireless service for data expect this to happen in 1 to 2 years. Interest is greatest among the young and those who already have broadband Internet access at home.

The research confirms consumer FMS as a growing trend. The landline remains the connection of choice for longer calls from the home, with the exception of shorter calls to friends and to other mobile phones, although differences do emerge by market.

The rational motivations for maintaining a landline subscription focus on price perceptions, for example 69% of respondents in Britain considered cost to be the key reason for choosing fixed calls ahead of mobile calls, more than any other country. The need for a landline for data and greater perceived reliability of the landline phone are important criteria in the minds of US and German consumers.

Emotional reasons to keep a landline phone exert a surprisingly strong force on consumers. These centre on the association of the landline phone with the home and the "cosiness" of the call experience. The research reveals that in order to encourage greater call substitution at home, the mobile phone would need to be strongly associated with value for money, good sound quality and reliable reception.

Regardless of some reservations, there exists a view among respondents that the future will inevitably be wireless. The perception is that wireless technology will improve, the quality and reliability issues will become less important and that data will be available through a wireless network for home Internet users. For these reasons the perceived value of the landline subscription is decreasing.

A significant number, in particular in South Korea, consider not taking out a landline subscription on moving house or flat. In fact amongst the South Korean sample, 65% of the respondents make all or most of their voice calls from a mobile phone.

There are some demographic differences: women are more likely to use landlines for the majority of their calls. Two groups can be identified: those who predominantly used landlines rather than mobiles were more likely to be women aged 35+ and home owners; and those who use landlines exclusively were more likely to be women and aged 50+.

FMS appeals most to the young professional group, who use their mobile phone for most of their voice calls; these users are more likely to be male; middle to high income, and make a large volume of voice calls.

The quantitative fieldwork was conducted during the second quarter of 2004. Specific details of the methodology applied in each market are as follows:
* Great Britain - sample size 2,011, face-to-face interviews, weighted to reflect national population, representative of 46M adults age 15 and over.
* South Korea - sample size 1000 face to face interviews, representative of adults that use a landline or mobile phone in Seoul, representative of 10M adults age 18 and over.
* USA - sample size 2,241 interviews conducted over the Internet, weighted to reflect national population, representative of 215M adults age 15 and over.
* Germany - sample size 1,015 face to face interviews, weighted to reflect national population, representative of 68M adults age 16 and over.

The selection of the markets was partly determined by reviewing known existing volumes of voice calls made from a landline or mobile as a share of total voice call traffic.

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