NEWS FACTS

• IDC research shows an increase of about 4% since 2009 in consumers who have already cut the cord or never had a wireline phone.
• More staggering is the 14% increase in the number of individuals who are thinking about wireless access only.
• Factors encouraging Canadian Consumers to go wireless include:
• Most people don't have an appetite for maintaining the dual cost of wireline phone and wireless phone services as well as two separate plans and terms of service.
• The improvement of wireless phone service plans and pricing is also spurring wireless substitution. Wireless services are becoming more and more cost effective and comparable with wireline services.
• VOIP offerings such as Skype have made it easier than ever to make calls cheaply or free over the Internet, potentially removing the need for a long distance fixed line service plan and decreasing revenue for the service provider. Calls routed via smartphone cellular networks via applications like Google Voice are also increasing in popularity, again removing the need for wireline phone services and increasing reliance on wireless telephony.
• On the Internet access front - movement to cut the cord is not as pronounced. Only a small subset of Canadians at about 6% are seriously considering wireless for Internet access. IDC believes this will increase over time with the deployment of next generation wireless broadband networks and the proliferation of mobile internet sticks such as Rogers Rocket Stick and Bell's Turbo Stick and TELUS Mobile Internet Key.

Wireline Response	Percentage
Yes already cut the cord or never had a wireline	2.9%
Yes planning on cutting the cord next year	3.7%
Thought about it but decided to keep wireline	24.5%
Never thought about it	60.9%
Don't know	8%

Source: IDC Canada Consumer Survey Jan 2010 n=100

Market Minute Video Emily Taylor Analyst, Customer Segments

QUOTES ATTRIBUTABLE TO EMILY TAYLOR, ANALYST IDC CANADA Cutting the cord on residential phone service has been slowly occurring for several years in Canada, however, it was not until 2009 when cutting the Internet cord became a practical reality for a number of Canadians. With the widespread rollout of HSPA networks Canadians can now think more seriously about wireless access being central to both voice and data communication.

Please contact Joanne Haywood to arrange an interview and/or for additional quotes.

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