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The telephone is an amazing invention. It allows people to communicate in ways not possible before. We take it for granted today that we can pick up a phone and call and talk to someone anywhere in the world any hour of any day. Before the telephone, the telegraph was the state-of-the-art invention, and even that was groundbreaking in its day. Before that, letters were the only way to communicate across long distances. The telephone reinvented communication and has increased the speed by which messages may be communicated.

Just as the telephone made the telegraph obsolete, today the cell phone is doing the same thing to land-line phones. Digital cell phones and Voice-over IP (VOIP) phones are easy to set up and maintain and allow businesses to lower cost and increase efficiency. While land-line phones will still be around for awhile, they are rapidly being replaced by cell phones. As technology is improving costs are falling and cell phones are becoming ever more simple, cheaper and better than land lines. Well maybe not the simpler part; land lines are actually simpler than cell phones as many of them do not use advanced features. Even the most basic cell phones have a variety of features including storing phone numbers, special ring tones, cameras and calculators.

Land-line phone companies are in decline. Some are keeping themselves useful through delivering high-speed internet and using fiber optic cables that run across the world. Cellular towers are connected through landlines and most phone calls are run through the existing infrastructure at some point. As the internet is replacing newspapers; so are cell phones replacing land lines.

The major source of growth in the cell phone industry is the...

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Peter is the lead analyst for the Investors Keyhole daily service. Although several analysts contribute to the reports issued throughout the trading day, he is the last one to see them before they are let out of our office into the light of day.

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