Landlines On Verge Of Extinction

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   (2012-07-12 00:00:00)

Wellington: Landline phones are at the risk of being dialled out of existence, as much of the younger generation use their mobile for all their calls, a new study has revealed.

The survey undertaken by Canstar Blue's mobile phone found that a third of Generation Y has totally abandoned their landlines.

That compared to 14 percent of Generation X respondents and just 8 percent of Baby Boomers.

Younger Kiwis were also four times more likely than Baby Boomers to spend time at work checking social networking sites, Facebook or Twitter on their mobiles.

The majority of customers preferred pre-pay plans to fixed contracts, with two thirds of the younger generation preferring to pay as they go.

"In the US market, consumers are shifting to prepay, no-commitment deals, because of economic hardship," quoted Canstar NZ national manager Derek Bonnar, as saying.

"It's possible that this is also happening in New Zealand," Bonnar said.

The survey also revealed the early uptake of mobile commerce, with 30 percent of Gen X and 28 percent of Gen Y respondents using their phones as a payment method.

But Bonnar cautioned that while consumers were doing more with their phones, they were negligent on account of security.

"Only 32 per cent use a password to protect their personal details, which is worrying when our research shows an increasing reliance on phones to store information and pay for goods," he said.

"In fact, this mobile commerce trend is laying the foundation for an escalating battle for control of people's wallets between mobile phone companies and the banks," he added.

The research was based on a survey of 1,358 people who bought a mobile or plan from a New Zealand retailer during the past year.