Word: cellular
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...competitors in the cellular services business are set on doing what many technology firms do. They will create several incompatible services and hope that enough consumers get behind one to make it the de facto standard. In the meantime potential subscribers will be confused, will waste money on products that they don't understand, and, eventually some will be told that their tech choice lost the battle. A similar problem faced consumers with high definition DVDs. The Blu-ray and HD DVD forces battled for over three years. Blu-ray won that war, but its sales have been very modest...
Something like a billion handsets are sold worldwide every year. That is good news for the large phone companies with big cellular businesses. Wireless handsets, calling plans, and data charges have built new revenue for them at a remarkable pace...
...first is that cellular handset sales are slowing in developed nations. In the U.S., by some estimates, there are more handsets than people. The same problem has hit carriers in Japan...
...other issue is that because the growth in cellular has been so successful, people are cutting off their landline service. Revenue from that business has been supporting phone companies since the days of Alexander Graham Bell...
...With cellular growth slowing and landline business shrinking Verizon (VZ) has come up with a novel idea - $5 a month landline service. According to The Wall Street Journal, "Verizon believes the plan could help slow the rate of landline customers cutting the cord, so to speak. The company lost 3.7 million access lines, or 9.3% of its base, in 2008." The phone will take incoming calls and limited calls out. People will have to pay for additional telephoning at a modest price. Of course, smart people may use their cell to call out and take calls on their landline...