Subscribers, Market Share, Additions, Churn, and ARPU

3Q CY2003

Analysis

Verizon continues to outpace the other carriers in terms of subscriber additions. Verizon and Nextel lead the pack in terms of the lowest churn; high churn continues to haunt all the other carriers, and will increase again in Q4 as number portability takes effect and a mass migration to Verizon occurs.

In terms of market share, AT&T and Sprint lost market share from 2Q CY2003 to3Q CY2003, while Cingular, Nextel, T-Mobile, and Verizon gained market share.

In terms of average revenue per user, Nextel remains the leader, and recovered from last quarters big drop and popped back up to $70. Cingular and Verizon remain stuck at around $50. AT&T and Sprint PCS enjoy higher ARPU, but their high prices may also be contributing to their loss of market share, and when number portability starts on November 24, 2003, they are expected to be the two carriers that are hit the hardest. T-Mobile has batter ARPU than Verizon and Cingular, which is surprising since T-Mobile is supposed to be the low price leader.