Search Policy & Research

Advanced Search

From the Databases

Utilities...

On aarp.org

Email Newsletter

Get updates on Policy & Research by email.

Phone Service

Older Persons and Wireless Telephone Use

Research Report

Christopher Baker, AARP Public Policy Institute

Ann McLarty Jackson, AARP Public Policy Institute

May 2005


Table of Contents:

Over the past decade, the number of cellular or wireless1 telephone subscribers in the United States has grown substantially, from roughly 16 million in 1994 to approximately 161 million in 2003, producing a nationwide penetration rate of 54 percent.2 The wireless industry estimates that there are currently over 182 million cell phone service subscribers in the United States.3 The large and growing number of subscribers, many of whom are age 50 and older, clearly suggests that the public finds value in having a wireless phone.

Wireless Phone Use by Age

For many older Americans, wireless telephone service has become an essential tool of life. Respondents age 50—64 are almost as likely as those age 18—49 to report having cell phone service (Figure 1).

Figure 1. Respondents Who Have a Cell Phone They Could Use to Make or Receive Calls, by Age (%), January vs. December 2003
Figure 1. Respondents Who Have a Cell Phone They Could Use to Make or Receive Calls, by Age (%), January vs. December 2003

Although respondents age 65 and older are least likely to report having cell phone service, they are the fastest-growing age group of cell phone users—increasing 10 percentage points, from 27 percent to 37 percent. This represents a 37 percent change between January and December 2003.

When asked why they have cell phone service, respondents age 18—49 are most likely to say it offers the convenience of being able to make calls from anywhere. In comparison, cell phone users age 50—64 are just as likely to cite security in case of an emergency as they are to cite convenience as the reason they have cellular service. Among cell phone users age 65 and older, security is the single most common reason for having a cell phone (Figure 2).4

go to the top of the pageTop of Page


Figure 2: Reasons for Having Cell Phone
Figure 2: Reasons for Having Cell Phone

Cell Phone Users Who Shop for, or Switch to, Another Service Provider

More than two in five (43 percent) cell phone users said they compared the price or other features of cell phone service offered by different providers within the past year. Older cell phone users were less likely than were other age groups to have made such comparisons (Figure 3 overleaf).

Figure 3. Cell Phone Users Who Compared Prices/Features from Different Providers over Past Year, by Age (%)
Figure 3. Cell Phone Users Who Compared Prices/Features from Different Providers over Past Year, by Age (%)

One in three cell phone users (33 percent) reported having switched cell phone service providers because they were dissatisfied with that provider or because they thought they would be more satisfied with another company.

Cell phone users age 65 and older were least likely to report that they had ever switched providers (Figure 4). Among all cell phone users who have changed cell phone service providers, the most common reasons for switching were "found a better rate" (38 percent), "poor telephone service quality" (28 percent), and "poor customer service" (15 percent).

go to the top of the pageTop of Page


Figure 4. Cell Phone Users Who Have Switched Cell Phone Service Providers, by Age (%)
Figure 4. Cell Phone Users Who Have Switched Cell Phone Service Providers, by Age (%)

Cell Phone Users Perceptions’ of What They Pay for Service

Half of all older cell phone users (age 65+) pay between $20 and $50 a month for cellular service. Fifteen percent of older respondents report that they pay more than $50 per month for cellular service, compared to 42 percent of respondents age 18—49 and 29 percent of respondents age 50—64 (Figure 5).

Figure 5. Amount Cell Phone Users Report Paying for Cell Phone Service per Month, by Age (%)
Figure 5. Amount Cell Phone Users Report Paying for Cell Phone Service per Month, by Age (%)

Summary

The large and growing number of cell phone service subscribers, many of whom are age 50 and older, clearly suggests that the public finds value in having a wireless phone. Among all age groups of cell phone users, older users are the most likely to say that security is the reason that they have a cell phone and the least likely to have shopped for, or switched to, another service provider. They are also the most likely to report spending $50 or less per month on cell phone service.

go to the top of the pageTop of Page


Footnotes

1 For the purpose of this report, the terms "wireless" and "cellular" are interchangeable.
2 Federal Communications Commission. "Annual Report and Analysis of Competitive Market Conditions with Respect to Commercial Mobile Services: Ninth Report." (September 28, 2004). Accessed February 18, 2005 from http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-216A1.pdf.
3 CTIA-The Wireless Association. Accessed May 3, 2005, from http://www.ctia.org/.
4 Respondents were allowed to provide multiple responses; thus, the sum of percentages shown exceeds 100.

Written by Christopher A. Baker and Ann McLarty Jackson, AARP Public Policy Institute
May 2005
©2005 AARP
All rights are reserved and content may be reproduced, downloaded, disseminated, or transferred, for single use, or by nonprofit organizations for educational purposes, if correct attribution is made to AARP.
Public Policy Institute, AARP, 601 E Street, NW, Washington, DC 20049

Pub ID: FS116