Fourth Generation Wireless Should Have Solid Initial Appeal to Consumers According to a New Harris Interactive Survey

ROCHESTER, N.Y. – December 21, 2006 – 2007 is expected to be an exciting year for new technology, with the anticipated unveiling of initial Fourth Generation Wireless Services ("4G") to consumers. 4G will offer a raft of new choices in the world of wireless services, including even higher speed mobile Internet access, video and TV in an on-the-go, real time, on-demand format and new options for networking and entertainment for the home. Ultimately, 4G will allow consumers to select a single provider to deliver their entire home, mobile and entertainment services.

As with any new technology, 4G presents a variety of questions and challenges. Will consumers buy it? How many will buy early and how many will wait? Given a choice, what companies will consumers prefer to buy from? What are the motivators and barriers for adoption of the new technology?

With this in mind, Harris Interactive seized an opportunity to explore these critical questions through an online survey of more than 1,200 U.S. adult consumers between November 17 and 24, 2006. The company recently presented the results of this effort through its latest Webinar*, which offered a sneak peak at consumer reaction and set some expectations for service providers.

In this survey, consumers were shown a description of 4G services and asked for their initial reactions. Early indications show that 4G could be a winner, with half of adults (49%) finding 4G "appealing" and about one-third (34%) saying they would likely subscribe to 4G service. Interestingly, about seven percent of likely subscribers say they would buy "at launch."

So is that early adopter rate a good number or a poor one? The survey also asked a few benchmarking questions concerning consumers’ early adoption rate for ANY new technology. Nine percent (9%) of adults say they are willing to pay a premium for "new" technology and three percent purchase such products "at launch." This is a highly prized segment for technology companies to identify and lure with their products. As the 4G early adoption rate exceeded the benchmark, early returns look good for 4G service providers. Good news indeed for 4G Marketers!

Initial review indicates that consumers will most likely have a big appetite for 4G services. So, who are their preferred 4G service providers? The survey results show Internet providers to be in first place (20%). Surprisingly, second place could be held by any major technology company, such as Google or Microsoft among others (16%), which illustrates how wide open this market is and how brand acceptant consumers are. Closely following are cable companies and traditional phone companies (15% each) and wireless service providers (14%) - which, in the end, could spell trouble for this group and leaves the door wide open for new players to take the lead.

Seventy-seven percent (77%) of likely subscribers made it clear that offering the service without a binding contract would accelerate their buying 4G services and 70 percent want a switch-back guarantee without charge. Both most likely indicate consumers want a safety net to catch them in the event 4G does not deliver on the service as promised. Placing all your eggs in one service provider’s basket is scary for many. Additionally, service providers must address concerns that a single provider can offer the complete bundled package at a competitive price and mitigate any concerns that wireless delivery quality could suffer at the hands of inclement weather or other terrain issues.

In general, 4G looks like it is well positioned for a solid market introduction! Joseph Porus, Vice President and Chief Architect for Harris Interactive’s Technology Research Practice, views the overall results of the survey positively. "4G has the early hallmarks of a winner. It offers everything 3G was supposed to and more. Since consumers are wide open to consider 4G service providers, look for a wild ride as 4G hits Main Street!"

This online survey was conducted within the United States between November 17 and 24, 2006 among 1,259 adults (aged 18 and over). Data were weighted to reflect the total U.S. online adult population on the basis of region, age within gender, education, household income, race/ethnicity and amount of time spent online.

All surveys are subject to several sources of error. These include: sampling error (because only a sample of a population is interviewed); measurement error due to question wording and/or question order, deliberately or unintentionally inaccurate responses, nonresponse (including refusals), interviewer effects (when live interviewers are used) and weighting.

With one exception (sampling error) the magnitude of the errors that result cannot be estimated. There is, therefore, no way to calculate a finite "margin of error" for any survey and the use of these words should be avoided.

With pure probability samples, with 100 percent response rates, it is possible to calculate the probability that the sampling error (but not other sources of error) is not greater than some number. With a pure probability sample of 1,259, one could say with a 95 percent probability that the overall results have a sampling error of +/- 2.8 percentage points. Sampling error for data based on sub-samples may be higher and may vary. However that does not take other sources of error into account. This online survey is not based on a probability sample and therefore no theoretical sampling error can be calculated.

The Harris Interactive Technology Research group doesn’t just monitor and measure the industry. It interacts with the thought leaders who drive technology, telecom and e-business everyday and provides insights from a variety of vertical perspectives. Using the group’s unique knowledge, experience, and expertise in both the telecommunications and information technology sectors, Harris Interactive asks the right questions, confirms business issues, and designs and implements studies to provide clients with actionable results.

Harris Interactive is the 12^th largest and fastest-growing market research firm in the world. The company provides research-driven insights and strategic advice to help its clients make more confident decisions which lead to measurable and enduring improvements in performance. Harris Interactive is widely known for The Harris Poll, one of the longest running, independent opinion polls and for pioneering online market research methods. The company has built what it believes to be the world’s largest panel of survey respondents, the Harris Poll Online. Harris Interactive serves clients worldwide through its United States, Europe and Asia offices, its wholly-owned subsidiary Novatris in France and through a global network of independent market research firms. The service bureau, HISB, provides its market research industry clients with mixed-mode data collection, panel development services as well as syndicated and tracking research consultation. More information about Harris Interactive may be obtained at www.harrisinteractive.com.

Michelle Soto

Harris Interactive

585-214-7665