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Forrester Research Finds That US Mobile Phone Adoption Continues To Climb, As Household Penetration Reaches 67 Percent

CAMBRIDGE, Mass.--(BUSINESS WIRE)--April 13, 2005--Two-thirds of US households have at least one mobile phone, according to a new 5,600 household survey from Forrester Research, Inc. (Nasdaq: FORR). Single-phone households are currently a declining minority, and households with four or more mobile phones have grown at a rate of 57 percent in the past year.

"The wireless market continues to defy predictions that it is approaching its saturation point," says Forrester Research Principal Analyst Charles S. Golvin. "But while consumers keep buying, they are far from ecstatic with their mobile providers. Despite carriers' focus on improving their networks and customer service, customer satisfaction has declined over the past three years and hovers around 50 percent in key categories like customer service and call dependability."

The "US Mobile Growth Defies Conventional Wisdom" report draws from Forrester's annual Consumer Technographics(R) North American Benchmark Study and includes findings on consumer attitudes toward mobile providers and phone features, data on carrier market share, and customer satisfaction rankings. Key data points include:

    --  Post-consolidation, the top three mobile carriers will own
        seven out of 10 mobile households: Cingular (28 percent),
        Verizon (27 percent), and Sprint/Nextel (15 percent).

    --  Despite a move by providers to add features like digital
        cameras and color screens to their phones, consumers'
        priorities when purchasing a phone have not shifted over the
        past two years. Basic features like price, battery life, and
        ease of use continue to be most important features to
        consumers. Less than one in 10 subscribers says that a camera
        is important in their phone purchase decision.

    --  While basic features are most important to consumers when
        choosing a phone, wireless data functions, such as the ability
        to access email and share photos, are becoming increasingly
        important. Twenty percent of consumers say that having data
        capabilities is important when purchasing a new phone -- a 39
        percent increase over 2002.

    --  In 2004, the youngest age category in Forrester's survey (18
        to 24 years) surpassed 25- to 34-year-olds as the age group
        that is most likely to have a mobile phone. The only age group
        below 50 percent penetration for mobile phones is the 65 and
        older age group.

    --  Prepaid users have doubled in the past two years, reaching
        close to 11 percent of mobile phone consumers in 2004.

"US Mobile Growth Defies Conventional Wisdom" is the first document in the "State Of Mobile 2005" research series. It is available to WholeView 2(TM) clients and can be found at www.forrester.com. Upcoming documents in the series will focus on the rate at which consumers are replacing their landline phones with mobile phones, mobile data services adoption, and the factors that motivate consumers to switch providers.

About Forrester Research

Forrester is an independent technology research company that provides pragmatic and forward-thinking advice about technology's impact on business. Business, marketing, and IT professionals worldwide collaborate with Forrester to align their technology investments with their business goals. Forrester offers products and services in four major areas: Research, Data, Consulting, and Community. Established in 1983, Forrester is headquartered in Cambridge, Mass. For additional information, visit www.forrester.com.

(C) 2005, Forrester Research, Inc. All rights reserved.


    CONTACT: Forrester Research, Inc.
             Erica Cantwell
             + 1 212/672-1757
             ecantwell@forrester.com

    SOURCE: Forrester Research, Inc.