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Landline Phone Use Plummets Among Poor Households

By NOMAAN MERCHANT and ALAN FRAM   04/20/11 07:28 PM ET   AP

Landline Phone Use

LITTLE ROCK, Ark. -- In a financial and technological role reversal, a growing number of Americans are getting rid of their old telephones and using only cellphones, a trend being led not by the high-tech elite but by people in poorer states as a way to save money.

Government estimates released Wednesday show at least 30 percent of adults in 10 states rely entirely on cellphones, with the highest percentage in Arkansas and Mississippi, where many cannot afford to pay for two separate lines.

Wealthier households have been slower to use wireless technology as their sole means of making calls.

"The answer's obvious: No one has money here," said John N. Daigle, a professor of electrical engineering at the University of Mississippi with broad experience in the telecommunications industry. "If they can do without a landline, they'll do it to save money."

William Phillips of North Little Rock says he grew tired of paying for a landline his family rarely used. So he and his wife dumped their old phone and now have prepaid cellphones that cost a total of $75 a month.

Phillips, a 39-year-old commercial pilot, taught his 12-year-old son, who doesn't have a phone, how to email him rather than call when the boy is at home.

"I've heard people talk about it, that they ought to do it," Phillips said. "They're just hanging onto that phone number."

About 35 percent of adults in Arkansas and Mississippi have only cellphones, according to figures from the federal Centers for Disease Control and Prevention.

In New Jersey and Rhode Island, the states where the smallest proportion of people depend strictly on wireless phones, that figure is only 13 percent.

Mississippi has the highest poverty rate in the nation – 21.9 percent in 2009, according to the Census Bureau. The Arkansas figure was 18.8 percent. The nationwide rate is 14.3 percent.

In 2009, the Census Bureau defined poverty as a single person making less than $11,000 a year or a family of four making less than $22,000 a year.

"I think people decide, 'I can afford one but not the other,'" said Ellen Reddy, who works for a nonprofit community center that helps low-income residents in Holmes County, Miss. She said poor people in her area often have cellphones with a limited number of minutes.

"When the minutes are gone, oftentimes we can't reach our families," Reddy said. "I think people are making choices."

The number of American households that rely exclusively on cellphones has been growing steadily nationwide, hitting 27 percent in the first half of 2010, an eightfold increase in just six years. Arkansas has had the greatest increase, with 15 percentage points. New Jersey's 7 percentage-point growth was the lowest.

Donielle Flowers of Little Rock doesn't remember the last time she had a landline. She's chosen to carry one of two cellphones – a free, government-subsidized phone with 250 minutes a month, and a prepaid phone that costs $60 a month.

"It's an extra bill," Flowers, 34, said of landlines. "I'm rarely at home, so I just need a cellphone. I'd be lost without it."

That matches the conclusion of Stephen Blumberg, a senior CDC scientist and an author of the survey. Over the years, Blumberg has found that lower-income people are more likely than higher-earning Americans to have only wireless phones. Younger people and renters are also quicker to shed traditional landlines.

New Jersey is neither young nor poor, and that's keeping it at the bottom of the list, Blumberg said.

On Wednesday, many people walking around the capital city of Trenton were talking on cellphones or texting family, friends and colleagues. Among them was Harry Weaver, a 46-year-old insurance agent who said he loves the freedom and convenience his smartphone provides.

Weaver acknowledged that he "pretty much lives" on his smartphone but said he has no plans to pull the plug on his home landline. As the father of three teenage daughters, Weaver says he wants a "dependable" phone line in case his girls need to reach their parents in an emergency.

"We could probably end our landline service and save some money, but it gives me peace of mind to know there's another way they can reach us if needed," Weaver said.

Some customers feel landlines offer more security, especially if they ever need to call 911. Since wireless phones are not linked to a fixed address, the caller's location can be more difficult for dispatchers to pinpoint.

The latest state-by-state figures, which cover the 12 months through June 2010, may indicate changes are needed in the way some public opinion polls are conducted, Blumberg said.

As the use of cellphones has grown, major pollsters have routinely included cellphone users in the people they call randomly. The number of cellphone users they call reflects national cellphone use, but Wednesday's findings suggest those numbers may need adjustment in states with especially high or low cellphone dependence, he said.

In addition to those in Arkansas and Mississippi, at least 30 percent of adults in eight other states – mostly in the West – rely strictly on cellphones. Those states were Colorado, Idaho, Kentucky, Nebraska, North Dakota, Oklahoma, Oregon and Texas.

At the other end, only six states – mostly in the East – joined New Jersey and Rhode Island in having fewer than 17 percent of adults using only cellphones. They were Connecticut, Delaware, Massachusetts, New Hampshire, Pennsylvania and South Dakota.

The CDC estimates were based largely on data from the agency's National Health Interview Survey, for which it has interviewed 109,187 households over the past 3 1/2 years.

The government also uses statistics from the Census Bureau's American Community Survey taken between 2006 and 2009, plus information from listed telephone directories. The figures are then blended to produce a single estimate.

Array

But even in Arkansas, some people are holding tight to their landlines.

"I was taught to have a house phone at home, whether you use it or not," said Dale West, 40, who carries a $60-a-month cellphone and pays about $35 a month for his landline. "Even though you got a cellphone, you never know."

___

Fram reported from Washington. Associated Press writers Emily Wagster Pettus in Jackson, Miss., and Bruce Shipkowski in Trenton, N.J., contributed to this report.

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06:38 PM on 04/28/2011
Hey, different strokes for different folks...we all have different circumstances, so obviously will choose land vs cell to suit. The part that blows me away in the article is Donielle Flowers who gets to carry one of two cellphones – a free, government-subsidized phone with 250 minutes a month, and a prepaid phone that costs $60 a month. In all fairness, what is she doing with the government subsidized phone, if she can afford a $60/mth phone too? I don't even get 250 minutes for my phone, partly due to budget, and partly cause I'm an infrequent cellular user. Tracfone, while not offering smart phone selections, is ideal for keeping costs low, as you can get 120 minutes for $20, and over 3 mths should you wish. Do the math, and tell me the "government" couldn't be spending more wisely with smaller subsidized phones and plans and how does she manage 2 phones being "poor"? If some of us can manage to find a cheap service, and without any subsidy, contract or compromise in coverage, why can't the rest do it?
04:18 PM on 04/22/2011
Just for your information: There is no reason for a customer service rep to "lie" to you about this charge. Here's the information you can obtain by going to the FCC site.
"Subscriber Line Charge (SLC) Q & A
Who put it on my bill?
The charges are placed on the bill by CenturyTel based on a ruling by the United States
Congress via the Federal Communications Commission (FCC) in 1983. To promote competition
in long-distance services, the FCC sought to reduce the level of “access charges” that longdistance
carriers pay local companies for their use of the local network.
What is it?
The subscriber line charge helps local telephone companies recover some of the costs
associated with connecting telephone lines to your home or business. Regulated by the FCC, this
fee is assessed to all ILEC end users.
This is a mandated fee.
Also known as: FCC-Approved Customer Line Charge, FCC Subscriber Line Charge, Interstate
Subscriber Line Charge, Customer Subscriber Line Charge, Federal Line Fee
Who gets the money?
This revenue is pooled and distributed nationally to local exchange carriers as a replacement for
lost revenue from reductions in long-distance rates and access charges."
12:01 PM on 04/22/2011
My cell phone sits on a shelf. I refuse to subsidize the pricing models.

Seems to me, a pay-as-you-go plan should be exactly that. Pay for each call. But no, that's not the way it works. It works like this:

Prepay, say $30,00 a month.

If that amount is not used up in calls, proactively roll it over to next month before month end (doesn't happen automatically) and top up the amount.

If you forget to roll it over, the cell-phone company keeps it. Yes, that's right, takes it!
That, on top of the vast, prepaid, interest-earning amounts the cell providers get to use.

In my view, that predatory model amounts to theft, so my cell phone sits on the shelf. I rarely miss it -- just on a few occasions when running late, etc.

I don't need to chat with or text people on the run. I am not that important, or that insecure. Which is it?
10:42 AM on 04/22/2011
Landlines are great! They work even when there is a powerfailure. (If you have a cordless phone that needs power...keep a regular phone around.) They cost the same each month. You can screen calls via an answering machine. They are very reliable. I have a pay-as-you-go cell phone that I use when I'm out and my bills are tiny.
06:39 AM on 04/22/2011
You can make your own free land line using an ATA box, Google Voice and one of the many free VOIP services, like this...

http://www.tech-adventures.com/2011/02/make-your-own-free-phone-service-by.html
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gregcurts
Any belief worth having must survive doubt”
02:10 AM on 04/22/2011
Does that mean I'm poor?? Damn!
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Mister Grumpy
An Angry American
01:29 AM on 04/22/2011
I've only kept my landline because the number is on my resume........ the landline is history once I find a full time job...........
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johnnygoodwud
12:08 PM on 04/22/2011
you can switch your landline phone number to your cell phone. i did it, very easy.
12:12 AM on 04/22/2011
The reason people don't keep a land line is because it is superflous. The reason people do keep a land line is as a tether to the past. Cut the cord, Boomers. Techmology got yo back.
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11:23 PM on 04/21/2011
Cell phones are still not as reliable as landlines, and cell phone service can be expensive.
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DSevere
Deviant mind
11:46 PM on 04/21/2011
But then what do you do when you get separated from your beloved at Home Depot? ;) Or more seriously, when your car breaks down someplace at 1AM and you need to call AAA? Or, you're waiting for an important business call but you also want to go to the gym? Or, um, just overall you want to have a normal modern life?
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12:02 AM on 04/22/2011
You can get a cheap cell phone without a contract or a monthly fee.
Bare bones. Just a phone, no email or internet.
photo
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SouthernJewel
That All Important I-4 Corridor in Central FL
10:23 PM on 04/21/2011
No landline for at least five/six years.
We have a family cell phone plan.
Everyone has their own ringtones
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flinthfp
1John 5:11-12 Eternal Life in flesh
08:59 PM on 04/21/2011
A tip from a Tech Guy.....If the issue is cost and saving money...
1..Get yourself a broadband light connection ....Comcast & att&t approx $30 a month.......from her you will have internet connection and also VOIP which simply means a telephone over the internet rather then phone lines....
2. Free ..Download Google Voice ....you will get a free phone number and make and receive free calls within the USA. (You can Transfer your existing phone number if you wish)
3. For Emergencies get a PAY AS You Go phone (shop around for best prices)
OF course if you have the money you will not need this advise...
Hope this helpful !
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Billyguitar
Disgusted by politics since John Anderson lost. In
07:58 PM on 04/21/2011
When they can cure the lag between two cellphones I'll drop the landline. As it is I find it very irritating.
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cadawa
07:54 PM on 04/21/2011
Join Credo. The rates are better than those listed. Activism phone calls are free, service is terrific and a portion of the profits go to fund citizen's groups and conservation orgs.
photo
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DSevere
Deviant mind
07:04 PM on 04/21/2011
People still have landlines? We got rid of ours years ago. What would be the point of having one? You don't have to be poor to dislike paying an unnecessary extra bill, even a small one. Letting your monthly overhead get away from you is one way people get into financial trouble. All those little things add up.
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11:25 PM on 04/21/2011
What if there is a storm that messes up the cell phone towers? Or an emergency that causes the cell phone system to get overloaded with calls?
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DSevere
Deviant mind
11:39 PM on 04/21/2011
Then, um, we won't call anybody for a while? Kind of the same as when a storm knocks over a telephone pole and kills land line service. Bad stuff happens....
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04:51 PM on 04/21/2011
what is a landline??? ;-))
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flinthfp
1John 5:11-12 Eternal Life in flesh
09:12 PM on 04/21/2011
A landline (or land line) was originally an overland telegraph wire...SO simply put a phone that has a connection from the phone jacks (outlets) in your home.....
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DSevere
Deviant mind
11:37 PM on 04/21/2011
Um, I think that was a joke...