1. Report to Congress Sixth Annual CMRS Competition Report June 20, 2001

2. Digital Coverage in the U.S.

3. Source: FCC estimate based on publicly-available sources

4. Wireless vs. Wireline “Cord-Cutting” –3 Percent of mobile telephony subscribers rely on their wireless phones as their only phone –12 percent of those surveyed purchased a wireless phone instead of installing an additional wireline phone “Technology Substitution” –BellSouth exiting the payphone business in part due to business lost to wireless phones –20 million mobile phone subscribers have free long distance

5. Mobile Data Devices Paging/Messaging: 45.3 million subscribers –Arch, Metrocall, SkyTel, Weblink Wireless, Verizon Dedicated Data Networks: 650,000 subscribers –Motient, Cingular Interactive, Metricom Handhelds Devices or Personal Digital Assistants (PDAs) –PalmOS, RIM, Microsoft Pocket PCs

6. “Wireless Web” Services Offered by Mobile Telephone Carriers Subscribers –From 0 in 1999 to 2.5 million in 2000 Offerings from seven carriers –ALLTEL –AT&T Wireless –Cingular –Nextel –Sprint PCS –Verizon Wireless –VoiceStream

7. Wireless Web 1 Find It 2  Shopping 3 Finance 4 NewsStand more... Alerts GO Connect to the wireless data network Access websites for: –Movie listings –News –Shopping –Stock quotes –Traffic reports –Weather forecasts

8. 3rd Generation (3G) ITU standards specified Additional spectrum allocated and assigned in most major European and Asian countries –Proceeding underway in the U.S. –U.S. carriers may use existing licenses to deploy 2.5G and 3G networks 2.5G and 3G rollout delayed but underway