This story appears in the
June 2002 issue of
Entrepreneur.
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It's a truly nascent trend, but you may already know someone
who functions without a traditional phone line. The 1996
Telecommunications Act may have forced the Baby Bells to allow
competition, but according to Bruce Kushnick, chairman of consumer
group TeleTruth (www.teletruth.org), the Bells still collect an extra
$200 per year from each household compared to other telecom
companies.
With competition driving telecom prices down for all but Bell
land line services, about 1.7 percent of the buying public have
dropped land lines for a combination of broadband access and mobile
phones, reports Charles Golvin, senior analyst at Forrester
Research. By 2006, 5.5 million households will have given up second
land lines and 2.3 million will have shut down their primary
lines.
Cutting the cord is far more nettlesome for business. But
starting this year, VOIP promises to give businesses the kind of
flexibility at the office that mobile phones give them on the go.
By 2006, Golvin figures, VOIP will displace 4.26 million
traditional phone lines.
Mike Hogan is Entrepreneur's technology editor. Write him
at mhogan@entrepreneur.com.
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