For more information, contact:

Elaine Potter, Marketing Coordinator
Phone: 480-483-4441; Email: epotter@reedbusiness.com

In-Stat Survey Indicates Solid Growth Of Bundled Telecom Services

SCOTTSDALE, Ariz., July 19, 2005 - In-Stat (http://www.in-stat.com) research shows that just under half of the US residential market has purchased multiple telecommunications services as a package from a single provider, up from just one-third in 2004. However, the potential for growth of bundled services is only tepid at best, with just 14 percent of non-subscribers expecting to adopt them in the next year, the high-tech market research firm says.

“In order to better capitalize on the bundled opportunity, providers must offer a variety of package choices to match the appropriate services with different customers’ needs,” says Amy Cravens, In-Stat analyst. “As research has shown, different age groups and income levels represent different interests, and the best of bundled offerings will account for these differences in package design and promotion.”

A recent report by In-Stat found the following:

• Providers typically scale discounts so that the more services that are purchased, the greater the savings. This strategy appears to be working, as 50 percent of respondents indicated that they purchase bundled services for the lower price.
  
• Significant revenue opportunities remain to further expand average revenue per user; however, new approaches are necessary to entice non-subscribers.
  
• Internet service was more often included in a bundle than local phone service or cable TV among survey respondents. This is interesting for the future of IP-based services such as Voice over IP (VoIP) and IP-based video services.

Recent In-Stat research, Triple Play? Bundling Strategies in the US Residential Market (#IN0502204IA), includes results of consumer primary research to identify the demand for bundled service offerings and potential means of making such services more competitive. It features data showing how many consumers plan to purchase bundled services over the next 12 months according to various demographic categories.

For more information, contact:

Amy Cravens, Senior Analyst
Phone: 480-609-4545
Email: acravens@reedbusiness.com

Elaine Potter, Marketing Coordinator
Phone: 480-483-4441
Email: epotter@reedbusiness.com

About In-Stat

In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions. Technology and semiconductor vendors, infrastructure and device manufacturers, service providers and media companies worldwide rely on partnerships with In-Stat’s tenured, experienced staff and on our in-depth market intelligence to support critical business, product and technology decisions.

In-Stat is a strategic segment of the $9 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the U.S.