BOSTON-“Competitive Wireless Pricing Around the World,” a new report compiled by The Yankee Group, reveals the drop in wireless prices worldwide has increased the potential for landline displacement by wireless.
The report shows the wireless premium to landline rates in North America now stands at a ratio of 2-to-1 for wireless subscribers using 1,000 minutes per month, and 3-to-1 for 500-minute users. Wireless rates in North America have dropped nearly 40 percent since late 1996, more than in any other region, except Africa and the Middle East.
“Europe is the other region best primed for landline displacement, and we see it happening in places such as Finland, where wireless penetration has reached 60 percent,” said Cristiane Mahler, principal author of the report.
Prices in Europe have dropped by 33 percent since 1996, and wireless-wireline price ratios are similar to those in North America, said the report.
