Although Small in Size, MPC Market Offers Significant Opportunities Reports In-Stat/MDR.

Business Editors

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--March 24, 2004

The Greenfield, or Master Planned Community (MPC) market, while currently relatively untapped, offers significant opportunity for broadband services and is a growing area of interest for service providers and developers alike, reports In-Stat/MDR (http://www.instat.com). The high-tech market research firm finds that, while considered to be of limited growth potential, given its small size in comparison to the total U.S. residential broadband market, this market is at the forefront for new technology adoption, presenting unique opportunities to showcase advanced solutions, introduce new services, and achieve revenue per user that is not possible in the general residential market.

"Homebuyers are increasingly looking for technology as a factor in their purchase decision, and developers are increasingly using technology as an amenity to attract these homebuyers," said Amy Cravens, a senior analyst with In-Stat/MDR. "As consumers have become more attuned to, and demanding of, in-home connectivity, residential developers and builders have begun to focus on introducing the necessary infrastructure to enable broadband services in their MPC. In many Greenfield developments not only is broadband connectivity available, but it is a cornerstone of the community."

In-Stat/MDR has also found that:

-- While some MPC residents continue to be billed for broadband

services according to the traditional model of direct

subscriber billing, some communities are experimenting with a

new approach. In some MPCs all or a portion of the broadband

services may be bundled into the HOA fee. This model ensures

the provider high penetration rates for at least a portion of

their service offerings.

-- The connected community market is expected to grow from 236.6

thousand homes in 2003 to over 1 million homes in 2008. The

majority of these homes will be in Greenfield, or new,

communities.

-- Texas is a particularly large market and is largely being

served by CLECs. Providers, such as Eagle Broadband, En-Touch

and Central Texas Technologies, have established a vast MPC

footprint in Texas. Arizona is another very active MPC state,

with a significant Greenfield residential market.

-- Increasingly Wireless LAN products are being used in the

residential environment as a simple home networking solution.

The report, "Community Outreach: Broadband in U.S. Master Planned Communities" (# IN0401285MU) examines the market for broadband service delivery to MPCs in the United States. To purchase this report, or for more information, please visit: http://www.instat.com/catalog/pcatalogue.asp?id=70 or contact Rick Vogelei at 480-609-4533; [e-mail]. The report price is $3,495.

About In-Stat/MDR

In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end users.

In-Stat/MDR is part of the Reed Electronics Group, a division of Reed Elsevier (www.reedelsevier.com), a world-leading publisher and information provider. With over 38,000 employees worldwide, Reed Elsevier operates in the science & medical, legal, education and business-to-business industry sectors, providing high value and flexible information solutions to professional end users, with increasing emphasis on the Internet.