WIRELESS SPENDING OVERTAKES WIRELINE

Wireless Service now Largest Portion of Customer Spending
Total Telecom Spending Growth Stalls

JENKINTOWN, PA, October 20, 2004 – Total U.S. household spending on wireless services now represents the largest share of dollars spent on telecommunications services according to the most recent data released by TNS Telecoms, a global provider of market information and analysis for the telecommunications industry. In the second quarter of 2004, 30 percent of spending on telecommunications services was dedicated to wireless service while wired line service represented 29 percent of spending, a drop of three percent from the previous quarter. The average U.S. household spends $47.87 on wireless service each month and a total of $158.88 on all telecom services. At the same time, the second quarter results also show that growth in total telecom spending has stalled with a decline of one percent from the spending in the previous quarter.

“These results represent the nature of the hyper-dynamic telecommunications market today,” says Charles White, vice president of TNS Telecoms. “As the total size of the market stalls service providers will increasingly be battling against other telecom services for growth.”

As of the second quarter of this year, 70 percent of households have at least one wireless phone with the average household with a wireless phone spending $69.94 each month, an amount which continues to grow. Alternatively, 96 percent of households have a fixed wired line in their home with an average spending of $54.78, but both of these wired line numbers continue to decline, albeit slowly.

Telecom Industry Market Share – Second Quarter 2004

About the Research

TNS Telecoms collects responses through its Bill Harvesting® database from 32,000 U.S. households that provide their complete set of telecommunications bills, promotional bill inserts and telecom direct mail communications each year. In the business market, TNS Telecoms' BusinessWave® research gathers telecom behavior information from small, medium and large businesses across the U.S. Together this syndicated information provides a number of product offerings including databases, TNS reports and online applications allowing national, state, city and micro level analysis across the U.S.

About TNS Telecoms

TNS Telecoms, the specialist telecoms division of TNS, is a global provider of strategic and tactical market information and analysis for telecom service providers and the entire telecommunications industry. Its range of syndicated research solutions and custom capabilities allows TNS Telecoms to meet the changing market information challenges of telecom-related businesses. For more information please go to www.tnstelecoms.com.

About TNS

TNS is one of the world's leading providers of market information. The company delivers strategic market measurement, analysis, insight and advice to many of the world's largest organizations and most recognized brands. TNS' research helps its clients better understand the needs and wants of their customers, and its capabilities span market segmentation, advertising and communications, new product development, brand performance and stakeholder management. The company is also one of the leading providers of social and political polling. From its global network that spans 70 countries who together conduct research in more than 110 countries, TNS allows for local expertise and knowledge to be combined together with internationally consistent information and analysis.

TNS is listed on the London Stock Exchange (TNN) and is a trade mark of Taylor Nelson Sofres plc. Further information can be found on www.tnsglobal.com

* * * *

Editor’s Note: Please source all data and tables as “Source: TNS Telecoms.” Third Quarter 2004 Tracking Metrics will be available in January 2005.
Bill Harvesting and BusinessWave are registered trademarks of TNS Telecoms

Home | Products | Solutions | What's New | Company Info | Contact Us

1-215-442-9000