Economy May Be Death Knell for Landlines ... Even Cable

If consumers are forced to pare down, high-speed internet connection has trump
By Jim O'Neill,  Newser User
Posted Oct 27, 2008 10:20 AM CDT
Cable TV providers could be hit hard as consumers tighten their belts.   (AP Photo)
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(Newser) – An economy that’s stuck in “slow” could soon have consumers making choices about whether to keep their cable TV or Internet connections, and weighing whether they need a telephone landline, reports Advertising Age. A high-speed connection that can provide access to the Internet, phone service and even entertainment would be the preferred path for the tech-savvy, analysts say.

Consumers are loathe to spend more than $200 a month to stay connected and, increasingly, communications services have been bumping against that ceiling. As the economy tightens, more consumers will look for ways to save money. The first casualties may be cable—which could see consumers retreat to plain vanilla basic service—and landlines abandoned by users turning to cell phones.