Who needs a wired phone anymore?
Cellphones may have begun life as gadgets to use when out and about, but they are increasingly being used at home in place of landline phones.
Sixty-four percent of U.S. households have at least one mobile phone. In many areas of the country, there are at least three and maybe four wireless carriers, with the big players being Cingular, Sprint Nextel, T-Mobile, and Verizon Wireless.
Cellphones are a popular option for long distance and also with younger users. Nationwide wireless calling plans start at about $40, compared with traditional local and long-distance plans that run about $70 per month, including taxes and fees for services such as voice mail, which are a part of many wireless plans.
A quarter of households that have wireless phones use them to make at least half of the long-distance calls, according to technology research firm Forrester. By the end of 2003, 4 percent of these households had already given up landline service altogether, and three times as many said they expected to by the end of 2006. "A lot of young people and single people use their wireless phone as their only phone," says Forrester analyst Lisa Pierce.
Cellphone makers and wireless service providers are coming up with more and more enticements, including built-in cameras and music players. But sending photos and downloading music usually cost extra, and the charges can quickly add up. As cellphones get "smarter," more consumers will use them to manage their schedules and contacts, making them virtually indispensable. Even more services are undergoing tests, including being able to feed a parking meter from the phone. Try doing that with a landline. -Mary Kathleen Flynn
This story appears in the March 7, 2005 print edition of U.S. News & World Report.