Trouble For Verizon (VZ) And AT&T (T): The Home Phone Is Disappearing Faster

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By Douglas A. McIntyre Updated Published

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Verizon (VZ) and AT&T (T) are in a race to see whether the growth in their cellular and broadband businesses can accelerate faster than their residential landline businesses are shrinking. The fate of their earnings hangs in the balance.

The recent news about the prospects of holding onto landline customers has not been terribly good. According to the AP,”the number of U.S. households opting for only cell phones has for the first time surpassed those that just have traditional landlines.”

The figures are bound to get worse as cell phones add more features and 3G networks extend their reaches beyond major cities and into suburbs and smaller towns.

The landline still has some utility because it does not need electricity to work. In an emergency, that is a comfort. And, it is an advantage over VoIP and cellular service. But, that advantage is only important in areas of the country with weak electric infrastructure and the number of areas like that is extremely limited.

The day is coming when almost no one will have a residential landline. Verizon and AT&T need to hope that every one of the customers who drop the traditional service will have a telecom broadband connection and two or three extra cell phones on hand.

Douglas A. McIntyre

Contact [email protected] for any questions or corrections.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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