For more information, contact:

Cheryl Cadden, Marketing Coordinator
Phone: 480-609-4540; Email: cheryl.cadden@reedbusiness.com

Survey Shows that Wireline Erosion Will Accelerate; 20% of Households Plan to Cancel or Not Use Wireline Services

SCOTTSDALE, Ariz., February 6, 2006 - According to the In-Stat US Consumer Telecom Survey, nearly 20% of respondents that use wireless voice service plan to drop landline phone service, reports In-Stat (http://www.in-stat.com). Furthermore, as an indication of future wireline erosion, wireless usage continues to increase in proportion to wireline usage, particularly among 18-24 year olds

“Compared to 2004 survey results, wireless has increased from one-quarter of home phone minutes to nearly one-third in 2005,” says Bryan Van Dussen, a Research Director with In-Stat. “With this increase in wireless usage, comes an increased displacement of landline use.”

A recent report by In-Stat found the following:

• Long distance usage has been particularly affected, with nearly half of respondents indicating decreased landline usage, and the average decrease being 60%.
  
• Certain population segments are more inclined to “cut-the-cord,” with the youth market and lower income respondents being more inclined to make this transition.
  
• Those making under $50,000 are more apt to cancel their landline versus those making over $50,000.

Recent In-Stat research, Cutting the Cord: Consumer Wireline Erosion (#IN0502207IA), covers the wireline erosion trend among US telecom consumers. It contains the results of In-Stat’s “Consumer Telecom Survey, 2005” research study. Survey respondents represented a random selection of US residents owning a home telephone. The report includes analysis of US consumer voice telecom services usage and trends, along with forecasts of future use.

For more information, contact:

Bryan Van Dussen, Director
Phone: 781-734-8676
Email: bryan.vandussen@reedbusiness.com

Cheryl Cadden, Marketing Coordinator
Phone: 480-609-4540
Email: cheryl.cadden@reedbusiness.com

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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.

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