We’re all hanging up the landline

THE number of people ditching fixed-line telephone services in favour of mobiles is larger than previously thought; just two-thirds of young Australians connect landlines when they move out of home. About 14 per cent of mobile-phone users no longer have a fixed-line telephone at home, says a survey of 18,000 people by the Australian Communications and Media Authority.

This is bad news for Telstra, which owns and operates the copper wire telephone network and has experienced declining revenue from this high margin product line. Its revenue from fixed-line rental and call tariffs has declined from about $7 billion in 2006 to $5.8 billion last financial year. Of those choosing to keep their fixed telephone line, a third said it was convenient or cheaper than mobile, and just 13 per cent said it was because fixed lines offer better quality or more reliable service.

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