Is Amazon about to kill the landline?
Select language to see a machine translation of this article. The original language of the Article is English and the translation is provided for your convenience.

Is Amazon about to kill the landline?

Ecommerce titan Amazon may be about to kill the landline once and for all. According to the U.S. Health Department, over half (50.8%) of American homes no longer have a landline, as mobile phones and online services like Facebook and Skype have become ubiquitous. But they linger on thanks to better call quality and cheaper rates (compared to mobile) for international calls. As Amazon’s Echo, and the Alexa virtual personal assistant (VPA) that comes with it, becomes more widespread, that could change.

Amazon’s share price is up 28% so far this year!

amazon2605

SOURCE: Yahoo Finance

Writing at Mashable.com, Ray Wong road tested the Echo as a fixed home phone solution. Identifying the importance of call quality for older users, who may struggle more on calls due to a decline in hearing, he wrote:

“Right off the bat, I noticed the call quality was good. Like really good. My colleague Brett said it sounded just as clear as a regular phone call, which is great because if I’m ever to convince my parents to get rid of their home phone for an Echo, the call quality needs to be excellent.”

There are a few barriers to cleaning up the landline market. First amongst them is availability of international calls. The service, unsurprisingly, only works in areas where Alexa and Echo are supported: at the moment, a handful of English speaking countries. So you can forget about calling relatives in Asia. And second, conversations are all broadcast to the room via speaker phone – potentially problematic for users who value their privacy. But with Amazon making headway in a variety of international markets, and responding to customer demands with typical efficiency, you can expect these barriers to one day disappear. When they do, the home phone may have reached its end.

Disclosure

Dominion holds Amazon in its Global Trends Ecommerce Fund.


If you would you like to receive the Newsfeeds daily, please click here to sign up now!

Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
0.0/5 rating (0 votes)

Disclaimer
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.