Wednesday, June 27, 2007

T-Mobile's Triple Threat

The @Home service—which promotes T-Mobile as the only phone service you'll ever need—could further erode the traditional wired phone business. Various estimates suggest that between 27% and 41% of cellular minutes are used during calls from inside the home. And some 19% of U.S. households with Internet service have cut the cord, relying on their cell phones exclusively, according to consultancy Parks Associates. If it proves popular, @Home could speed that conversion, inflicting more damage on the local phone businesses at Verizon (VZ) and AT&T (T). In the first quarter, AT&T lost 285,000 residential consumer lines, up from 251,000 lines lost in the same period a year ago. "It's really about displacing the landline," says Joe Sims, vice-president of new businesses at T-Mobile USA.

From the article "T-Mobile's Triple Threat," by Olga Kharif.

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