Is wireline telephony going away? The attraction of traditional landlines is in decline. Fax usage is diminishing. Second lines for dial-up internet are pretty much historical artifacts. So, at least some of the decline in number of residential lines in the recent past may be attributed to changes in adoption of second lines.
On the business side, VoIP-based systems change the way we need to count enterprise lines. Business PBXs may use numbers without corresponding lines or ‘Network Access Services’.
Still, wireless substitution is a reality that needs to recognized. A new report came out last week warning the cable companies of the same troubles that Probe forecasted in 2004: the risk of going after a share of a dying business. On the other hand, a refutation of the report says that the fixed line market is so big that it is still attractive for cable companies. Which is it?
It is worthwhile looking at the Canadian cable approach – cable companies with both wireless and wireline offerings. Among such companies, Rogers is best positioned operating with its own wireless facilities, the largest national mobile services provider, bundling with its cable-based services in Ontario and parts of Atlantic Canada, and telephony wireline in the rest of Canada.
With a different angle, Videotron announced Duophone, offering unlimited calling between Videotron wireless residential cable telephone subscribers.
With nearly two thirds of the wireless market tied up in the hands of incumbent telephone companies, there may have been conflicting incentives for the mobile operators to aggressively target wireline substitution.
Videotron appears prepared to disrupt the stability of the marketplace. Their approach is non-traditional.
Among questions to ask: will Videotron bid for spectrum in the next wireless auction?
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mobile, wireless, Videotron, Rogers, Om Malik