(October 31, 2002) - Access lines are declining in penetration and revenues, according to a study by the Yankee Group. The research firm cites two factors as primary contributors to this decline: increased penetration of wireless services and growing broadband adoption. Roughly 3 percent of wireless households have completely replaced their landline with a wireless phone. Meanwhile, the penetration of broadband is expected to reach 37 percent of U.S. households by 2006. That translates into broadband households giving up their additional lines in exchange for high-speed access.

These two factors will result in a decrease in the residential local access market from 122.2 million lines in 2002 to 112.4 million in 2006, an annual decline of 1.7 percent, the firm predicts. Notes Aurica Yen, consumer technologies & services senior analyst and report author, "It is the first time in history that the number of access lines has declined in the residential local voice market. Local voice providers are now challenged to expand into new enhanced products and services to offset this decline." For more on the report, "Wireless Voice and Broadband Access Unlock Local Lines Grip on Consumers," see www.yankeegroup.com.