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T-Mobile Outpaces the Wireless Industry With Fastest Growth in Consumer Interest

Increasing Importance of Online Channel for New Subscriber Acquisition Reinforced by Analysis of Wireless Carriers' Q4 Online Metrics

Boston, MA - February 10, 2003 -- T-Mobile outpaced the rest of the wireless industry last quarter in the battle for online consumer interest, posting the fastest mind share growth among major carriers, according to new analysis from Compete, Inc. While still trailing AT&T Wireless, Verizon and Cingular in overall share, growth in T-Mobile's share of online prospects jumped by 35 percent from October to December.

Compete's analysis revealed that approximately 8.3 million consumers evaluated service offerings online across the big six wireless carriers in the U.S. in December 2002. Compete evaluated consumer demand and preference among these "in-market" wireless prospects to gain insights into the marketing strategies and acquisition performance of the top wireless carriers.

"The sheer size and behavior of in-market wireless prospects during Q4 highlight the strong role the online channel plays in customer acquisition for carriers," said Stephen DiMarco, Compete's Vice President of Marketing and Client Services. "The online channel was a key component of T-Mobile's industry-leading growth in Q4 - adding more than 1 million net new subscribers. We continue to see a compelling connection between consumer interest and behavior online and actual subscriber acquisition."

The new Compete analysis also found that:

AT&T Wireless led the industry in share of online interest among in-market wireless prospects at 40 percent. Verizon and Cingular were the second and third-ranked carriers with 25 percent and 20 percent share, respectively. Based on its surge in interest, T-Mobile matched interest in Sprint PCS, attracting 15 percent of all in-market prospects. Nextel captured the least interest at 10 percent.
A strong emphasis on promotions fueled AT&T Wireless's leading share of interest and attracted distinct consumer segments. 73 percent of AT&T Wireless prospects in December evaluated one of its promotional offerings – more than double the interest levels generated at Nextel and Sprint PCS. AT&T Wireless dominated interest among prospects over age 45 and prospects with household income under $30,000, attracting over three times the number of consumers in these segments than the average of the five other carriers.
T-Mobile, in contrast, attracted a more focused prospect than other carriers. 54 percent of T-Mobile's prospects evaluated a service plan compared to the industry average of 32 percent. In particular, interest in family plans, which grew moderately for all carriers, surged for T-Mobile, as it posted over 100 percent growth in prospects evaluating its "FamilyTime" plan from October to December.
T-Mobile also improved its competitive positioning over the course of the quarter. While 57 percent of T-Mobile prospects did not evaluate another carrier's offerings in October, T-Mobile improved this important measure to 70 percent in December.

"As the market share war continues among carriers in 2003, online consumer behavior of in-market wireless prospects will serve as a reliable and leading indicator of who will be the winners and losers," added DiMarco. "Our analysis shows that this group carefully researches service plans, features and promotions online. Carriers have a substantial opportunity to expand market share with the product messaging, packaging and promotional tactics they use within the online channel."