Subject: [NEXTEL-1] Metric: U.S. wireless penetration reaches 53%; growth

From: Marcel <[email-masked]>
Date: Tue, 11 Feb 2003 15:10:32 -0500

Metric: U.S. wireless penetration reaches 53%; growth
to come from youth, Hispanics

According to researcher Telephia, one-in-four non-wireless subscribers expects to sign up
for mobile service in
2003, with young adults aged 18 to 24 and Hispanics leading the growth segments. Based on
results from its
Market Metrics service, 53 percent of the U.S. now has mobile phone service. Individual
market penetration rates
varied by market, ranging from a low of 45 percent to a high of 71 percent. The markets
with the highest
penetration rates were Greenville, South Carolina (71 percent); St. Louis (69 percent);
Raleigh, North Carolina (65
percent); Orlando (65 percent); Atlanta (64 percent); Washington, D.C. (64 percent); and
Boston (63 percent).
Overall U.S. penetration increased to 53 percent in December 2002 from 50 percent in June.

------------------------------------------------------------------------------------------------------------------------

Telephia Report: U.S. Mobile Phone Penetration Reaches 53% of Total
Population in December 2002
One in Four Non-Subscribers Say they are Likely to Subscribe in 2003, With Young Adults
and
Hispanics Expected to be High-Growth Segments

The U.S. mobile industry closed 2002 with 53% of the total population in major
metropolitan areas
subscribing to mobile phone service, according to Telephia, Inc., the leading provider of
marketing and
service quality intelligence to the mobile industry. Looking toward 2003, findings from
Telephia’s online
survey of 50,000 wireless subscribers and non-subscribers showed that one in four
non-subscribers
expects to sign up for mobile service in 2003, with the young adult and Hispanic
populations likely to
emerge as high-growth market segments.

Based on results from its Market Metrics service, which performs continuous tracking of
activity on all major
cellular and PCS networks in 44 major U.S. markets, Telephia found that 53 percent of
residents now have
mobile phone service. Individual market penetration rates showed significant variability
by market, ranging
from a low of 45 percent to a high of 71 percent. The markets with the highest penetration
rates were
Greenville, S.C. (71 percent), St. Louis (69 percent), Raleigh, N.C. (65 percent), Orlando
(65 percent), Atlanta
(64 percent), Washington DC (64 percent) and Boston (63 percent). Overall U.S. penetration
increased to 53
percent in December 2002 from 50 percent in June.

While the mobile industry continues to attract new first-time subscribers and grow its
ranks in all 44 U.S.
markets examined, recent results from the Telephia Attitude and Behavior Survey, which is
performed jointly
by Telephia and Harris Interactive®, show that future industry growth will be increasingly
driven by the
effectiveness of marketing programs targeting the young adult (18 to 24 years of age) and
Hispanic
segments.

According to the study, new subscribers in 2003 are 60 percent more likely to be young
adults and 69
percent more likely to be Hispanic than the overall population of non-subscribers. Among
all
non-subscribers, one in four anticipates signing up for mobile service in the coming year.

“The most important question for the industry is not whether growth will continue but
rather how to best
market to the many who are ready to come on board and convince those who aren’t quite
there yet,” said
Mick Mullagh, president and chief executive officer of Telephia. “We will see an increased
focus on
segment-specific marketing this year as operators pursue strategic growth segments and
build an even
greater awareness of the tangible benefits of voice and data communications.”

The Telephia Attitude and Behavior Survey, conducted by Telephia and Harris Interactive,
is a
comprehensive study of the behavior, attitudes and perceptions of mobile consumers. The
report analyzes
key industry issues by carrier and customer segment. Offered quarterly, it is an online
study of more than
50,000 mobile subscribers and non-subscribers in the 35 largest U.S. markets and will be
expanded to
cover additional smaller regions later this year.

Telephia’s Market Metrics service measures subscriber activity in 44 major and mid-sized
U.S. markets. The
service offers the industry a comprehensive look at monthly market share, gross adds,
churn and
subscriber penetration at the market level and provides mobile operators with the most
complete solution
for benchmarking competitive marketplace performance in the mobile industry.

About Telephia
Telephia is the global leader in performance information for the mobile industry. Based in
San Francisco,
Telephia is a privately held company with leading investors that include AEA Investors,
Centennial Ventures,
Oak Hill Venture Partners, The Megunticook Fund and Cedar Grove Investments, LLC. For
further
information, visit www.telephia.com or call 415-395-0500.

http://www.telephia.com/press_release?news_id=75
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