Business
Woman Holding Red Phone to Her Ear
Getty Images
RINGING OUT

The landline isn’t extinct in America, but it might be by 2030

AT&T and others are cutting the cord on long-lived landlines as more households go wireless.

Millie Giles

If your household still has an old-style landline, it might be time to hang it up once and for all, as telephone companies say “Cu” to traditional copper cables.

During their investor day earlier this month, cellular giant AT&T announced that it’s phasing out copper wire entirely, meaning that its landline-phone service will no longer be available in almost every US state by 2029. Citing the $6 billion of annual costs incurred by legacy copper services, the company outlined plans to go all-in on fiber and wireless, including promoting a new product, “AT&T Phone Advanced,” as a fiber-based replacement for landline phones.

The telecommunications company reported that it’s expanding its wire centers to execute the nationwide exit from copper, though it also stated that “only 5% of our residential customers are still using copper voice technology.” Indeed, in the US at least, landlines are already a dying breed: according to the latest National Health Interview Survey from the CDC, an estimated 76% of Americans only used wireless telephone services, compared with 1.3% that solely used landline services — down from 43% just two decades before.

Landline chart
Sherwood News

Dialing back

Though only a tiny fraction of America is solely reliant on landlines, there are still tens of millions of households who have one. But, for AT&T execs looking after the company’s bottom line, the math is hard to ignore. The Dallas-based company disclosed that maintenance costs for fiber subscribers are 35% lower than for those still using some 70-year-old copper services.

Other providers are moving on from less reliable, more demanding copper services, too. Verizon, the largest cellular-service company in the US, announced plans to retire its copper cables in April, with Frontier and TDS also reportedly moving on from their copper networks. For AT&T specifically, decommissioning the most energy-hogging section of its business will help it keep its “leading position in the US fiber-optic business,” per the WSJ, as well as make headway in providing services to an ever-growing number of wireless customers.

Are you still there?

While cellular providers continue to pull back on landlines, it might be harder to sever these long-lived connections in some areas than others.

The Northeast, for example, has much higher usage rates of wired phones than any other part of the US, with more than half of New York, Massachusetts, Maryland, and New Jersey residents reporting still using the service. Why? Well, as suggested by The Washington Post last year, the near monopoly on landlines held by Verizon in almost every Northeastern state could have something to do it, with the company offering “triple-play” phone, broadband, and cable TV packages to customers at the turn of the digital age... which have stayed on hold ever since.

More Business

See all Business
Capsule Pill and Dots

Justice Department accuses telehealth Zealthy of fraud, says remedy may bankrupt it

The feds say they don’t think Zealthy has the liquidity to pay what it owes customers.

Netflix playground

Will investing in kids games finally make Netflix Games “the Netflix of games”?

Netflix is launching a game for preschoolers, its latest foray into stuff-you-play instead of stuff-you-watch.

business

American Airlines joins the flock, hiking bag fees amid higher jet fuel prices

American Airlines on Thursday announced that it, too, will be hiking the fees it charges customers to check luggage.

With the move, all four of the major US airlines, which together control about 80% of the US market, have now hiked their baggage fees in recent days amid surging jet fuel prices.

The change will go into effect on tickets bought on or after Thursday, the same day Southwest’s hike begins.

Since late March, JetBlue, Delta Air Lines, United Airlines, Canada’s WestJet, and Southwest have hiked their fees. Experts expect more major carriers to follow, and to potentially tweak the pricing of other ancillary revenue sources like seat assignments and carry-on luggage.

The change will go into effect on tickets bought on or after Thursday, the same day Southwest’s hike begins.

Since late March, JetBlue, Delta Air Lines, United Airlines, Canada’s WestJet, and Southwest have hiked their fees. Experts expect more major carriers to follow, and to potentially tweak the pricing of other ancillary revenue sources like seat assignments and carry-on luggage.

business

Less than a year after implementing them, Southwest is also hiking its bag fees

Southwest Airlines has joined the growing list of airlines opting to hike their bag fees amid sustained higher jet fuel costs.

Starting today, the first checked bag at the carrier — which implemented bag fees less than a year ago — will jump from $35 to $45, and the second from $45 to $55. Southwest quietly disclosed the change Tuesday.

Southwest assigned the decision to “part of an ongoing analysis of the business and against the evolving global backdrop.”

As of Wednesday, jet fuel prices dropped to $4.16 a gallon, per the Argus US Jet Fuel Index, down from $4.81 on Tuesday following President Trump’s ceasefire announcement, which sent travel stocks soaring. Major airlines have shed some of those gains in premarket trading Thursday.

With the move to hike bag fees, Southwest joins JetBlue, United Airlines, Delta Air Lines, and Canada’s WestJet, all of which also boosted fees this month. Experts expect more major carriers to follow, and to potentially tweak the pricing of other ancillary revenue sources like seat assignments and carry-on luggage.

Southwest assigned the decision to “part of an ongoing analysis of the business and against the evolving global backdrop.”

As of Wednesday, jet fuel prices dropped to $4.16 a gallon, per the Argus US Jet Fuel Index, down from $4.81 on Tuesday following President Trump’s ceasefire announcement, which sent travel stocks soaring. Major airlines have shed some of those gains in premarket trading Thursday.

With the move to hike bag fees, Southwest joins JetBlue, United Airlines, Delta Air Lines, and Canada’s WestJet, all of which also boosted fees this month. Experts expect more major carriers to follow, and to potentially tweak the pricing of other ancillary revenue sources like seat assignments and carry-on luggage.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, Robinhood Derivatives, LLC, or Robinhood Money, LLC. Futures and event contracts are offered through Robinhood Derivatives, LLC.