1

Thomas J. Sugrue

Opening Remarks

June 13, 2002

Seventh Annual CMRSCompetition Report

2

Total US Commercial Wireless Subscribers: 1992 to 2001

11 1624

3444

5569

86

110

128

0

30

60

90

120

150

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Mil

lion

s of

Sub

scri

bers

Source: Cellular Telecommunications & Internet Association, 2002.

3

Mobile Telephone Competition

2.5%8.9%

65.5%

78.3%

90.8%

84.4%

75.1%

46.7%

11.9%

94.1%88.7%

21.5%

53.5%

80.6%

0%

20%

40%

60%

80%

100%

3 or more 4 or more 5 or more 6 or more 7 or more

Number of Competitors in a County

Per

cen

t of

U.S

. Pop

ula

tion

1995

1997

2001

2002

Source: Federal Communications Commission, April 2002

4

Average Revenue Per Minute for Mobile Telephone Service

Source: Calculated using Average Local Monthly Bill and Average Minutes of User per Subscriber per Month from Cellular Telecommunications & Internet Association, 2002.

$0.44$0.47

$0.43

$0.38 $0.37

$0.29

$0.22

$0.18

$0.12

$-

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

$0.45

$0.50

1993 1994 1995 1996 1997 1998 1999 2000 2001

5

Average Local Monthly Bill1993 to 2001

$61.49$56.21

$51.00$47.70

$42.78$39.43 $41.24

$45.27 $47.37

$0.00

$16.00

$32.00

$48.00

$64.00

1993 1994 1995 1996 1997 1998 1999 2000 2001

Ave

rage

Loc

al M

onth

ly B

ill

Source: Cellular Telecommunications & Internet Association, 2002

6

Average Minutes-of-Use per Month1993 to 2001

140119 119 125 117

136

185

255

385

0

50

100

150

200

250

300

350

400

1993 1994 1995 1996 1997 1998 1999 2000 2001

Ave

rage

MO

Us

Per

Su

bsc

rib

er P

er M

onth

Source: Cellular Telecommunications & Internet Association, 2002; Calculated using reported billable MOUs, which includes local, roaming, and prepaid minutes.

7

• $40 per month

• 2 lines

• 210 shared minutes per month

• DC-Baltimore metro area

Kerry Sugrue Joins Sugrue Family Plan for Wireless Services

8

$0

$40

$80

$120

$160

April May June July August September

Sugrue Family Gets the Bill

9

Kerry Sugrue Leaves Sugrue Family Plan

But Finds Wireless Happiness With Her Own Plan

• $35 per month• 300 anytime minutes per month• 3000 nights & weekend minutes• Large regional calling area• No roaming• Long distance included• Voicemail, caller ID, call waiting, etc.

10

Don´t Let What Happened To My Daughter Happen To Yours

Read the new CGB/WTB

Wireless Phone Service Booklet for more information on wireless phone

service.

11

Wall Street Concerns

• Impact of “telecom bust” and general economic downturn

• Wireless growth slowing

• Too much competition?

• High cost of infrastructure expenditures

• What is the market potential for advanced wireless services?

12

Year-to-Year Growth in Wireless Subscribers

24%26% 25%

51%

45% 40%

30%27%

17%

0%

10%

20%

30%

40%

50%

60%

1993 1994 1995 1996 1997 1998 1999 2000 2001

13

Total Additional SubscribersYear-to-Year

4.97

8.139.66 10.25

11.27

13.89

16.8

18.9

23.5

0

5

10

15

20

25

1993 1994 1995 1996 1997 1998 1999 2000 2001

Source: Year-to-year additions based on subscriber data from Cellular Telecommunications & Internet Association, 2002.

14

Cumulative Capital Investments1993 to 2001

Source: Cellular Telecommunications & Internet Association, 2002.

$105,030,101

$13,946,406

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$ th

ousa

nd

s

15

14

1924

27

33

40

52

65

$0

$10

$20

$30

$40

$50

$60

$70

1994 1995 1996 1997 1998 1999 2000 2001

$ B

illio

n

Total Yearly Service Revenues1994-2001

Source: Cellular Telecommunications & Internet Association

16

51%

61% 60%

69%62%

50%

0%

25%

50%

75%

12-17 18-24 25-29 30-34 35-54 55 andover

Age Group

Percentage Who Own a Mobile Phone February 2002

Source: Upoc and Frank N. Magid & Associates