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The Strategis Group Identifies Opportunities for Growth 
in Highly Competitive Market for Residential Broadband

New Report Examines Cable Modem, DSL, and Fixed Wireless 
Residential Broadband Offerings, Projecting Combined Market 
of Over 38 Million Households by 2006

    WASHINGTON, Jan. 24, 2002 - The Strategis Group today announced results of an upcoming report, "Residential Broadband: Cable Modems, DSL & Fixed Wireless." In 2002 and beyond, this market, while poised for continued growth, faces significant hurdles. In this new report, Strategis offers a detailed analysis of broadband user attitudes towards their service, and provides an overview of carrier activity and trends. Detailed forecasts for each technology are also included. Significant technical advances will be offered by cable modem, DSL, and fixed wireless equipment manufacturers this year.

    "The economic environment of the past year, combined with uncertainty surrounding competing technologies and floundering business models, threatens to slow the growth in demand for residential broadband. However, we see great opportunity for vendors to tap into an unmet demand for more economical, yet sophisticated broadband services," commented Peter Jarich, Director of Broadband Research for The Strategis Group. "We'll be watching closely in the coming year for developments in this market."

    After strong growth in demand earlier in 2001, more recent marketplace failures are impacting consumer confidence, and in some areas the availability of residential broadband service. Also, significant is the current lack of compelling broadband content. There is a need for applications and content to be developed that will make residential broadband appeal to a wider audience.

    The Strategis Group is reporting that despite these challenges, there have been technological developments that promise to create new business opportunities, making the provisioning of current services more cost effective over the next 1-3 years. Across the sectors tracked in this report - cable modem, DSL, and fixed wireless - advances in technology will soon allow for enhanced services. Increased technical efficiency should allow service providers to offer lower costs to consumers, possibly by offering tiered services. A detailed analysis of these competing technologies is provided in the report.

    Furthermore, current residential broadband subscribers are reporting high levels of satisfaction with their service. It is the expectation of The Strategis Group that companies that are able to roll-out reliable customer service, strong marketing campaigns, and new consumer-oriented services and applications have the potential to drive the reach of residential broadband to over 35% of households in the United States by 2006.

    About The Strategis Group
    The Strategis Group, a C7 company, with offices in Washington, London, Singapore, and Sao Paulo, is a leading global telecommunications research and consulting firm. Founded in 1964, The Strategis Group publishes in-depth industry research reports, provides customized consulting services and supplies continuous information solutions to the broadband, wireless, cable, satellite, competitive telephony and Internet industries.

    For more information, please contact The Strategis Group at 202/530-7500 (voice), info@StrategisGroup.com (email), or visit our website at www.StrategisGroup.com.

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             CONTACT: 
             The Strategis Group
             James Mahoney, 202/530-7573
             Laura Janes, 202/530-7627