Released on: May 20, 2008, 7:55 pm

Press Release Author: Aileen Brucal

Industry: Telecommunications

Press Release Summary: The US mobile market is set to change significantly in 2008,
with the move of local incumbents, AT&T Mobility and Verizon Wireless, towards a
flat voice tariff model in 1Q08..

Press Release Body: The US mobile market is set to change significantly in 2008,
with the move of local incumbents, AT&T Mobility and Verizon Wireless, towards a
flat voice tariff model in 1Q08. In February 2008, AT&T Mobility, Verizon Wireless,
T-Mobile USA and Sprint Nextel introduced a flat voice tariff for mobile calls to
all domestic mobile networks and fixed lines at a monthly rate of $99. Verizon
Wireless, which was first to launch the new tariff, admits that the tariff is
primarily meant for a niche of high-volume mobile users. The cost of the new tariff,
however, is expected to decrease within the year as competition intensifies among
the top mobile players, making the tariff a viable option to the mass market.

Research by InfoCom on this topic has shown that in Germany, for instance, mobile
operators offer similar tariff models. However, in other Western European countries,
such as in France, Italy or Spain, such flat tariffs tend to be limited to a certain
call number or a period of the day or week. In the UK, flat voice tariffs are
generally restricted to calls made in the mobile operators' own network.

The US remain an attractive mobile market, with significant room for growth and an
estimated mobile penetration rate of only 83.3% in 2007, to reach 85% by end-2008.
Compared to 2006, both top-players recorded double digit revenues increase: AT&T
Mobility recorded an increase in mobile service revenues by about 15% to $38.7bn in
2007, while Verizon Wireless recorded an increase of about 16% to $38.0bn. The
revenue growth was paired by a significant enlargement of their subscriber base,
with a plus of 15% and 11%, to 70.1mn and 65.7mn, respectively. The flat voice
tariff model should help further sustain the growth of the subscriber base and push
mobile traffic volume, although it will intensify pressure on margin generation,
which could be crucial in the long-term.

While the US tariffs landscape is changing, over the next years mobile broadband
usage is also due to increase. However, unlike Europe, where mobile operators have
generally adopted the same technology, the US mobile market is characterised by a
large variety of different systems. While AT&T and T-Mobile's 3G networks are based
on UMTS, Verizon Wireless and Sprint Nextel deployed CDMA 2000 while Clearwire and,
again, Sprint Nextel agreed to partner on the roll out of a WiMAX network. Cable
operators are reckoned to be interested in WiMAX, supporting Clearwire/Sprint Nextel
with the WiMAX rollout, as a way to integrate their triple-play offerings and, thus,
compete with multiple-play offered by AT&T and Verizon.

About Mobile Broadband Report: Based on a best practice analysis in a significant
number of countries, vendors & carriers, this research shows how operators search
for opportunities through new applications.

About InfoCom
InfoCom is a market research and consultancy company with 20 years experience
providing strategic analyses and planning assistance to stakeholders in the
telecommunications, IT and multimedia industries. InfoCom's independent and
fact-based analyses highlight trends and opportunities, supporting decision makers
to understand market dynamics in order to improve their competitive advantage.
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Web Site: http://www.infocom-de.com

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Phone: +49 711 870510-39
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