Telephia: Small Group of Advanced Data Users Drives Majority of New Mobile Application Usage in the U.K.,

According to Telephia, "innovators, who are the most sophisticated and advanced mobile consumers, account for a disproportionately high share of streaming TV, online game play, video calling and full-track music download users, as compared to the overall mobile population in the U.K." A new Telephia UK 3G Report for Q4 2005 segments consumers into: Innovators, Early Adopters, and Mainstream Consumers. Innovators comprise on 9 percent of the market, but are the heaviest users of advanced data services.

Table 1: Consumer Adoption Segment Proportions (Indexed) Among
Advanced Data Service Users (U.K.)

                          Consumer Adoptions Segments
                    ---------------------------------------
                     Mainstream     Early
                      Consumers     Adopters   Innovators
                    ----------------------------------------------
Mobile Data Services                                           Time of
User Groups            Index %Share Index %Share Index %Share  Launch
------------------------
Streaming TV users        10    9%    150   29%    700   63%     2005
Online game play users    30   18%    170   34%    530   48%     2004
Video calling users       30   22%    190   37%    460   41%     2004
Full track music
downloaders              40   28%    190   38%    380   34%     2003
Video clip downloaders    40   25%    210   42%    370   33%     2002
Video messaging users     50   33%    180   36%    340   31%     2002
Game downloaders          60   45%    170   34%    230   21%     2001
Internet browsing users   90   67%    100   20%    140   13%     2000
----------------------------------------------------------------------
Total UK Advanced Data
Users                       71%          20%          9%
----------------------------------------------------------------------
Source: Telephia U.K. 3G Report, Q4 2005

Note: In Table 1, the index is benchmarked off a base of 100, with
scores of more than 100, interpreted as higher proportion of users vs.
scores of less than 100 as a lower proportion of users within each
segment group. For example, Streaming TV has an index score of 700
among Innovators, i.e. Innovators comprise 7 x (63%) of Streaming TV
users than they do of the total advanced data user population (9%).

Kanishka Agarwal at Telephia said, "Advanced data services activity in the U.K. is following the classic pattern of adoption -- first gaining traction within the technologically savviest group and then spreading across the rest of the majority. Time plays a critical factor, as the services with an established utility from an extended period on the market are first to gain the most from the mainstream audience, who demand products and services that are relatively glitch-free. As the 3G pipe is optimized for these services and becomes further penetrated, we'll see mainstream wireless consumers begin to exploit the more highly developed features of their cell phones."

Also According to Telephia, "37 percent of current advanced data service consumers would be most interested in a location service and route finding application on their mobile phones:

Table 2: Demand Share for Future Advanced Data Services

                                         Percent of Advanced
Service Feature                                 Data Users (%)
--------------------------------------------------------------
1. Location services/route finding                   37
2. Full range of network TV                          23
3. Seamless connection to WiFi hotspots              17
4. File sharing                                       8
5. Mobile advertisements                              2
--------------------------------------------------------------
Source: Telephia U.K. 3G Report, Q4 2005