Customers Begin to Cut the Cord for Local Phone Calls, According to Solomon-Wolff Study.

Business Editors/High-Tech Writers

MOUNTAIN LAKES, N.J.--(BUSINESS WIRE)--Nov. 11, 2002

Local phone companies face a growing threat from wireless companies, according to a recent study by Solomon-Wolff Associates.

In its July 2002 study, the research firm found that 13 percent of all U.S. consumers are making most of their local calls using a wireless phone. This is a major increase compared to the same period in 2001, in which seven percent of consumers said they use wireless for most local calling.

"So far, only four percent of those who use wireless phones say they have no local phone service provider," says Joey Wolff, partner with Solomon-Wolff Associates. "Abandonment of the local phone service varies from state to state, from a high of eight percent of wireless phone users in Michigan to less than two percent in Pennsylvania."

According to Wolff, this information may understate the seriousness of the problem. The research was done among Internet users, and unless they have cable TV service, all need a local phone line to connect to the Internet.

"All of the major local telephone service providers are losing some calling volume to wireless," continued Wolff. "The shift seems related to satisfaction with the local carriers. Among the major local service providers, satisfaction is highest for BellSouth where 36 percent report they are completely satisfied, and lowest for Qwest where 17 percent are completely satisfied. Only 10 percent of BellSouth customers shifted most local calling to wireless, but 15 percent of Qwest customers report that they shifted."

Survey data was taken from the latest semi-annual personal communications survey conducted through Solomon-Wolff's Web site, consumerviews.com, in July, 2002. A random sample of more than 6,800 participants from Solomon-Wolff's online database of more than 250,000 Internet users completed the survey. The sample of Internet users was asked questions related to usage, brands, spending and satisfaction of wireless phone service, local and long distance telephone service, cable/satellite TV, paging, ISPs, and computer and Internet usage.

For detailed information on Solomon-Wolff's study results, contact Joey Wolff at [phone] or e-mail at [e-mail]. Located in Mountain Lakes, New Jersey, Solomon-Wolff is a 20-year-old research company specializing in high tech and communications issues.

--30--JP/ny jtp

    CONTACT: Solomon-Wolff Associates
             Joey Wolff, 973/263-1409

    KEYWORD: NEW JERSEY
    INDUSTRY KEYWORD: TELECOMMUNICATIONS COMPUTERS/ELECTRONICS
    SOURCE: Solomon-Wolff