Consumer Communications Spend Falls in US

For the first time in more than three years, the average total communications spending of American consumers has fallen, according to the latest quarterly tracking data compiled by TNS Telecoms, the telecommunications division of market information group of Taylor Nelson Sofres.

TNS Telecoms reports that average communications spending in the fourth quarter of 2002 decreased by $2.22 from the previous quarter to a total of $145.22. The total includes local, long distance, wireless, Internet and cable/satellite TV spending. The downward movement ends a period of growth previously resilient to the conditions of the general economy.

Commenting on the findings, TNS Telecoms Vice President Charles White said 'While there are certainly many factors contributing to this trend, it is clear that consumers' communications spending is not immune to the pressures of the broader economy.' The research also indicated a significant slowing to the increase in wireless phone and Internet adoption, with slight declines in growth for both services.

As for the performance of companies within the communications industry, local service Sprint continues to maintain over 97 percent of its local phone customers in the face of competition, while SBC maintains the lowest share of local customers with just 82 percent of its local territory. In the wireless arena, only Verizon Wireless posted a significant gain in market share from the previous quarter with a 27 percent market share of wireless households.

TNS Telecoms collects responses through its Bill Harvesting database from 32,000 U.S. households that provide their complete set of telecommunications bills, promotional bill inserts and telecom direct mail communications each year.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.