U.S. Consumer Long Distance Calling Is Increasingly Wireless, Says Yankee Group; Survey Shows U.S. Households Make 43 Percent of Their Long-Distance Calls on Wireless Phones.

Business Editors/High-Tech Writers

BOSTON--(BUSINESS WIRE)--March 23, 2004

A recent Yankee Group report, "2003 TAF Survey Findings Highlight the Consumer Market's Competitive Challenges," states that wireless usage is accelerating the decline of landline minutes of use. Although the number of U.S. households that have totally cut the wireline voice cord remains small, 50 percent of wireless households report their wireless usage has replaced some, a significant amount or all of their regular telephone usage. The most dramatic impact of wireless displacement on wireline voice is in long distance, where wireless users indicate on average that they now make 43 percent of their long-distance calls on their wireless phones.

"As the lines between wireline and wireless product definitions blur, an undeniable connection can be traced between mobility's expanding product scope and a decline in wireline usage," says Katie Griffin, Yankee Group Consumer Technologies & Services senior analyst. "Further, the expanding availability of cable telephony offerings is introducing alternatives to consumers. By far, the most vulnerable area is the long-distance market. These trends have precipitated the death of distance and eventually will result in the death of the minute as the measure of the market."

The report is based on results from the Yankee Group's Technologically Advanced Family (TAF) Survey. This annual survey evaluates attitudes and spending across key consumer segments. Topics include: media and entertainment applications, devices, and content; voice/telephony services; home computing and networking; Internet; and wireless/mobile. The survey thoroughly examines U.S. consumer perceptions of products and services, drivers and inhibitors of technology adoption, brand and channel preferences and loyalty.

NOTE TO EDITORS

For interviews, contact Katie Griffin, [e-mail].

CORPORATE CONTACT

Kim Vranas, director of marketing, 617-880-0214, [e-mail].

The Yankee Group (http://www.yankeegroup.com)

The Yankee Group is the global leader in communications & networking research and consulting. The company helps businesses understand the opportunities, risks and competitive pressures of developing, deploying and consuming products and services that drive communication or information exchange. Now in its fourth decade, the Yankee Group is based in Boston with offices throughout North America and Europe.