66 Percent of U.S. Households Headed by Those 25 to 29 Are Mobile Only

In the second half of 2012, 38 percent of U.S. households used mobile phones exclusively for voice communications. In most areas, some 11 percent to 19 percent “mostly” used mobile phones for voice, even when a landline connection was available, according to the latest data from the Centers for Disease Control.

If the rates of mobile substitution continue as they have in recent years, in 2013 the percent of U.S. households that are “mobile only” for voice will have reached 40 percent, growing to 42 percent by the middle of 2014.

In a few states, exclusive use of mobile phones for voice is likely already above 50 percent of all homes. Mobile-only households have reached 52 percent in Idaho. In Mississippi some 45 percent of homes are mobile only.

In Arkansas about 49 of homes are mobile only, while in Utah some 47 percent of homes are mobile only.

Among households of users 25 to 29, mobile-only rates already are at 66 percent. Among users 30 to 34, some 60 percent of households are mobile only. Among households headed by people 18 to 24, 54 percent of homes are mobile only.

Those facts might eventually play a role in regulator and competition authority evaluation of the state of competition in the voice services market.

Regulators generally have not considered mobile services a full substitute for landline services.

In fact, the U.S. Department of Justice and Federal Communications Commission have argued that competition in the residential voice market is primarily between the incumbent telephone companies and cable companies.

“The available evidence does not establish that mobile services currently represent an effective competitive constraint on landline access pricing.”

Likewise, the Federal Communications Commission has said there is a lack of “evidence that would support a conclusion that mobile wireless service constrains the price of wireline service.”

How much longer that stance can be maintained is questionable.