TELEPHIA TO MEASURE MONTHLY CHANGE IN RESIDENTIAL ACCESS LINE MARKET SHARE IN 75 METRO AREAS

Telco Line Loss May Have Bottomed out at 40 Percent in Phoenix,

But is Accelerating in Boston Where 30 Percent of New Lines

Went to Cable MSOs in December

SAN FRANCISCO--February 15, 2007--Telephia, the world's largest provider of syndicated consumer research to the telecom and mobile media markets, today announced the national rollout of its Residential Market Metrics product. This product uses Telephia's patented Network Signal Polling technology to produce highly accurate, monthly measurements of residential access line share at the metropolitan market level. Telephia turned up measurements in its first 10 markets in Q4 2006 and will complete a rollout to 75 markets by Q4 2007. This effort builds on Telephia's Mobile Market Metrics product which has been the industry standard measure of monthly subscriber acquisition and retention for the mobile industry since 1998. The 75 markets measured will match what's currently being tracked through Mobile Market Metrics.

"We are excited to deliver this greatly improved measurement capability to our clients on the fixed line side of the telecom market," said Laura Taylor , Telephia's Director of Product Management. "Executives at our mobile carrier clients already rely on Market Metrics to track their share of consumer decisions each month. As competition for residential subscribers intensifies, leading telcos, cable MSOs, VoIP operators and Wall Street analysts are looking to Telephia research to help guide strategies."

Residential Market Metrics uses Telephia's patented approach for determining the ownership and assignment status of millions of residential phone numbers. The collection technology is deployed across Telephia's network of geographically distributed testing centers measuring changes in residential access line market share each month. Without Residential Market Metrics, operators and Wall Street analysts must use consumer surveys to track market share, which are too inaccurate and costly to use for monthly measurement.

Telco Line Loss Higher in Phoenix and San Diego , but Boston Also Showing Signs of Increasing Loss

Telephia's clients can customize Residential Market Metrics to see a view of market share defined for their specific footprint. For example, the results in Table 1 were calculated using the full telco footprint in each market, but could be redefined to show market share within a cable MSO's specific local footprint.

Among the three markets disclosed in this release, telco line loss was highest in Phoenix where the incumbent telco only served 60 percent of residential voice lines and lowest in Boston where telco market share was still 80 percent (see Table 1). However, data on share of gross lines activated in December 2006 shows that telco line loss is accelerating in Boston with the cable MSO taking 31 percent of new lines as compared to their market share of 18 percent at the beginning of December. Competitive gains from the pure-play VoIP operators like Vonage is relatively consistent across the three markets, while cable MSO performance drives most of the variance in telco line loss.

"Telecom is an industry in which the war is won or lost at the local market level and share is changing hands rapidly in every market we measure," continued Taylor. "With access to this data our clients can monitor their share of new residential activations each month and adjust their competitive tactics accordingly."

Table 1: Residential Access Line Market Share for Phoenix , San Diego and Boston ( U.S. )

Source: Residential Market Metrics (December, 2006)

Notes: *Subscriber counts and service provider names removed for press release. Product deliverable includes monthly subscriber counts for each individual service provider active in the market. Telco share also includes facilities-based and UNE-P CLECs in this press release. Product deliverable breaks out CLEC subscribers. VoIP share includes pure-play providers like EarthLink, Lingo, Packet 8, Vonage and Sun Rocket.

**Gross Lines Activated includes both new lines activated and those who switched.

*** Phoenix Market consists of Maricopa County; San Diego Market consists of San Diego County; Boston Market consists of Barnstable , Essex, Middlesex, Norfolk , Plymouth , Rockingham and Suffolk Counties

About Telephia

Telephia is the world's largest provider of syndicated consumer research to the telecom and mobile media markets. Telephia is your connection to the digital consumer. Since 1998, executives at service providers, device manufacturers, content providers, and retailers have relied on Telephia data to make confident competitive strategy, marketing and resource allocation decisions. Telephia uses its unique measurement tools and large-scale consumer panels to completely understand the digital consumer's behavior, attitudes and experience.

To learn how Telephia data can help you understand the digital consumer and track your competitive performance, please contact us at (415) 395-0500 or sales@telephia.com .

Press Contacts:

Telephia

Maria Bumatay

e: mbumatay@telephia.com

p: 415.637.4904