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Robert McGarvey

Businesses Hanging Up on Landlines

Written by Robert McGarvey
1/3/2013 49 comments
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Businesses are cutting the landline tether surprisingly quickly. "The rise of the cellphone-only worker is happening at lightning speed," wrote David Cameron, president of the IT services firm Rhode Island-based Conduit Systems, in an email.

It's a byproduct of the Great Recession and the continuing push inside many businesses to pare costs. Employees habitually use their cellphones for calls, even when they sit at their desks. That leads eyeshade-wearing accountants to ask whether those employees really need the landline, which costs the company money every month.

Small and midsized companies are cutting landlines the fastest, said Dan Tully, an executive vice president at Conduit Systems, in an interview. "This conversation is loudest in smaller companies. They are the ones saying, let's just use cellphones," said Tully.

These companies often lack staff to oversee deployment of a fullscale PBX, and they frequently also lack the budget.

Companies see benefits from transitioning to cellphones. It reduces training costs. For many employees, a sophisticated modern office phone system is "just another system for users to learn. But they already know iOS or Android," Tully said.

Also, employees "bring their cellphone everywhere, anyway, and they consult it throughout the day," Tully said.

Marilyn Santiesteban, assistant director of Graduate and Alumni Career Services at Bentley University in Waltham, Mass., could be a poster child for this movement. In an email, she wrote: "My office phone lacks redial and many other functions my cell has -- it's a dinosaur and I truly hate to use it. I like to forward my desk phone to my cell. I always check my cell before my desk phone."

At Coalition Technologies, a website design firm in Los Angeles and Seattle, the 18 employees use just cellphones, CEO Joel Gross told me in an interview. The company can add a new employee to its system "in a few minutes," including provisioning them with a business phone number that simply forwards incoming calls to their personal cellphone.

"At first, some employees think this is odd," Gross admitted. But the company pays part of their cellphone bill so "most come to see it as a positive."

Gross acknowledged that "it's not perfect. Call quality on a cellphone sometimes is not that great." But, for him, the cost savings and ease of provisioning new hires with phones outweigh the occasional shortcoming.

Gross has homebrewed his phone number provisioning tools, but enough small companies are interested in cutting the landline that it's spawned a business specializing in the service.

Employees of the shopping blog SHEfinds use their cellphones for business, but the company buys forwarding numbers from Grasshopper, SHEfinds CEO Michelle Madhok told me in an email.

Grasshopper's raison d'etre is to "let you run your business using your cellphones," according to the website copy.

Use of the forwarding numbers from Grasshopper means that SHEfinds owns the numbers that employees use for business. "If someone leaves, we still receive their work calls," Madhock explained.

One complaint about exclusively using cellphones is that international calls tend to be wildly expensive, typically $1/minute and higher. A fix is to require employees to install Google Voice, and set it to dial international calls. Put $5 in the account and that will keep most workers chatting away. (Google's international rates start at a few pennies per minute.)

"Older phone systems are just a restrictive mindset. You can't win this battle," said Tully, who indicated that he expected the once universal desktop phone to vanish, just as the also once universal Rolodex has taken flight from most companies. "It's inevitable."

It's about a lot more than the phone you talk into. "It's about liberating your employees and letting them work in the way they feel most comfortable. For many today, that means cellphone only," Tully said.

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— Robert McGarvey has been online and writing about the Internet for nearly 25 years.

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Mr. Roques
Researcher
Thursday January 10, 2013 5:41:39 PM
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But what if the company bundles it with cable or internet service (or all three of them) and the actual cost of having a phone is minimal. They may be betting on an occasional long distance call.

DrT
IQ Crew
Wednesday January 9, 2013 10:35:02 PM
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I was concern on the conference at the initial point but got used to iPhone's conference and easily add new individuals into the call.
Kim Davis
Thinkernetter
Wednesday January 9, 2013 3:54:37 PM
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Probably you'll get spam text messages instead, Lin.  :D

Ariella
Thinkernetter
Wednesday January 9, 2013 3:37:03 PM
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@lin I suppose that is something that cell phone designers will have to work on now that so many people use a cell as their only phone.

lin crampton
IQ Crew
Wednesday January 9, 2013 3:33:47 PM
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@Kim -- conference calling could be challenging if phones are running diverse protocols, or even if from different vendors.

Conference calling aside, I need to get in gear and join the 35.8% without a landline.  Another benefit to switching from residential landline to mobile would be a reduced number of robocalls and telemarketer calls.

Kim Davis
Thinkernetter
Wednesday January 9, 2013 3:27:10 PM
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I admit, I don't have the need for mobile conferencing, but there are good mobile conferencing solutions, aren't there?

lin crampton
IQ Crew
Wednesday January 9, 2013 3:22:21 PM
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Ariella -- I guess I will soon be joining the ranks of the 35.8% without landlines in their home (haven't had a business landline since the last century).  The one thing I will miss is the landline's conference feature, the ability to pick up a phone call and then get others on the same call with me.

Ariella
Thinkernetter
Wednesday January 9, 2013 1:43:41 PM
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@Kim That's true. If you're not using a landline, you don't gain anything from taking on a bundle package offerd by Verizon or Cablevision. 

Kim Davis
Thinkernetter
Wednesday January 9, 2013 12:37:46 PM
no ratings

That's amazing.  Must have been 90 percent or more once had landlines?  Bad news for phone/cable companies, with people migrating away from traditional cable TV packages too.

Ariella
Thinkernetter
Tuesday January 8, 2013 7:12:11 PM
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@Kim According to this http://bgr.com/2012/12/21/wireless-only-adoption-rate-35-8-percent-262622/ We're very close to hitting the post-landline era. The Center for Disease Control has released some preliminary results from its National Health Interview Survey for 2012 and has found that 35.8% of American households no longer have any sort of landline telephone in their houses and rely exclusively upon wireless. What's more, just under 16% of American households said they "received all or almost all calls on wireless telephones despite also having a landline telephone," meaning that more than half of all American households either have no landline service at all or have a landline service but rely almost exclusively on wireless.

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