Fixed lines here to stay: study

Commissioned by Telstra, the Consumer Technographics report for January and February 2005 found that around 90 percent of households were not willing to switch exclusively to a mobile phone. Seventy-one percent cited cost as the main barrier to making the change, while 60 percent of respondents said they needed a fixed line for Internet connectivity.

AMR Interactive interviewed 1,915 people for the survey.

The results proved that the fixed line phone business is far from dying, said Jason Juma-Ross, principal analyst at AMR Interactive.

"Australians are still very attached to their fixed line phones and most aren't likely to rely solely on a mobile service any time soon. Some commentators have recently been overestimating the demise of the fixed phone and while there are certainly some migration trends in niche markets, we are unlikely to see wholesale substitution in the short term," said Juma-Ross.

Telstra's consumer marketing head Jenny Young admitted that mobiles have hurt the fixed line business in general but the impact was marginal.

"There has been a slight decline in home phone usage as new technology has emerged, however our results and this research clearly show predictions the fixed phone is dying are plainly wrong .... Most Australians consider their fixed phone as an essential home or office fixture," Young said.

Meanwhile, 35 percent of participants said they felt more secure with a fixed line phone at home.