Connected But Not Wired: The Young and Cord-Free!
By Marina Amorosa
They’re out there, and their numbers are growing! They’re the “cord cutters”… although “cord-free” might be more to the point. More and more Americans are going exclusively wireless, although demographics indicate that many of them might never have had a cord in the first place.
The legion of those going “wireless-only” has risen dramatically since 2003, and Yankee Group expects that trend to pick up even more momentum in 2006. Yankee Group estimates that this year, 14 percent of all wireless subscribers, almost 32 million people or more than one out of every ten Americans, will be free of tethered landlines and only carry a mobile phone.
Prevalence of Cord Cutters
As anticipated, the proportion of cord cutters is much higher in certain demographics. Generally speaking, the younger the consumer, the less he or she thinks a landline is necessary. According to Yankee Group’s 2006 Mobile User Survey, 72 percent of all cord cutters over 18 years are between ages 18 and 44. The popularity of going exclusively wireless is highest among young adults, ages 18 to 24, of which 38 percent are completely wireless. Continuing trends from 2005 show that almost half of 18 to 24 year olds go wireless-only always because they have no need for a landline phone, while one-quarter of them go wireless to save money. These statistics are almost completley flipped when looking at older groups, with more than half of cord cutter over 45 years old going wireless to save money and only one-quarter going wireless because they don't need a landline phone.
In addition, as the current teenagers (13 to 18) mature — graduate from college and establish independent households — they will be even more likely than their predecessors to remain wireless-only. For many of these consumers, the wireless phone is, and most likely will be, their primary phone. These individuals will mature and begin to set up independant households, and they will probably continue their usage patterns and reliance on their wireless phone.
Not only is this younger generation (born 1985 or after) inherently wireless-focused, but it has been digitally dependent from its earliest ages. These are kids of the “U-Generation.” They are ubiquitously connected to everything around them through digital communications while maturing in an un-tethered world. Their wireless entertainment activities, such as text messaging, gaming, watching video, listening to music, and social networking focus on the “You” — the personal, the customized, and the narrowly segmented customer experience. This only boosts their wireless preferences and makes it likely they will become even more inclined toward wireless as they age.
