Use of Online for Telecommunications Services We surveyed a total of 300 consumers that use the web to research and/or purchase Telecommunications Services •

A custom survey instrument (i.e. questionnaire) was developed to measure respondents’ use of the web, and search engines in particular, for researching and purchasing Telecommunications Services

•

The survey was conducted online, through a web-based interviewing process, in March 2005

•

Our sample is evenly distributed across all age groups and genders

•

Respondents were recruited through a variety of methods: web advertising, permission-based databases, public relations, telephone recruitment, partner-recruited panels, and alliances with heavily trafficked portals

•

The survey was designed and administered by Global Market Insite (GMI), a global sampling and data collection company, and MediaScreen, an independent strategic market research firm

Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 1

Use of Online for Telecommunications Information Executive Summary •

Three-quarters (78%) of Google users compare prices for Telecom Services online and 26% have purchased Telecom Services online

•

Search engine usage: -

Nearly two-thirds (64%) of Google users use a search engine first when researching Telecom Services, while less than 2% go to a portal first

-

Two thirds (65%) of Google Users feel a search engine is important to their making a telecom service purchase decision

-

The vast majority (90%) of Google users say they would likely use a search engine after seeing an advertisement for a Telecom Service

•

Over 70% of all respondents select Google (over other search engines) to research and purchase Telecom Services

•

Almost three-fourths of Google users (74%) have heard of VoIP and the vast majority of Google users (92%) say they would be comfortable purchasing VoIP online

•

Nearly three-quarters (74%) of Google users use a search engine to research cell phone plans and internet access services Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005)

2

Use of Online for Telecommunications Information Three-quarters (78%) of Google Users compare prices for Telecom Services online and one-quarter (26%) purchased Telecom Services online 90% 80%

78%

77%

70% 60% 53% 50% 40%

35% 31%

30%

26%

20% 10% 1% 0% Compared prices on Telecommunications services

Go online to learn more about new Telecom Services that heard about elsewhere

Became aware for the first time of a new Telecom Service

Purchased/Subscribed to a Telecom Service offline after researching it online

Returned to the site where purchased Telecom Services to purchase accessories/services

Purchased/Subscribed to a Telecommunications Services online

Other

N=238

Have you ever done any of the following online? Please select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 3

Use of Online for Telecommunications Information Over half (57%) of Google Users expect to compare prices for Telecom Services in the next six months 60%

57%

50% 45%

44%

40%

30%

27%

26% 23% 21%

20%

10% 0% 0% Compare prices on Telecom services

Learn more about a Telecom Service that heard about elsew here

Learn about a new Telecommunications Service

Purchase/Subscribe to a Telecom Service offline after researching it online

None of the above

Return to the site w here purchased Telecom Service to purchase accessories/services

Purchase/Subscribe to a Telecommunications Services online

Other

N=238

Which of the following activities do you expect to do online in the next six months? Please select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 4

Use of Online for Telecommunications Information Nearly two-thirds (64%) of the Google Users use a search engine first when researching Telecom Services while less than 2% go to a portal first 2%

0%

2%

Search engine

32%

Service provider Portal Retail shopping site Other

64%

N=229

When you go online to research a telecommunications service (phone services, Internet access services, wireless plans), where do you typically go first? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005)

5

Use of Online for Telecommunications Information Most Google Users (65%) go to a service provider, but one-quarter (28%) go to a search engine first when purchasing a Telecom Service 0% 6%

1%

Service provider

28%

Search engine Retail shopping site Portal 65%

Other

N=102 When you go online to purchase a telecommunications service (phone services, Internet access services, wireless plans), where do you typically go first? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005)

6

Use of Online for Telecommunications Information Almost three-fourths (74%) of Google Users have heard of VoIP

26%

Yes No

74%

N=238

Have you heard of a new technology called VoIP (Voice over Internet) that allows users to make phone calls over their broadband Internet connection? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005)

7

Use of Online for Telecommunications Information Three-quarters of Google Users (77%) have heard about VoIP online 90%

80%

77%

70%

60% 49%

50%

43% 40%

30% 20%

19%

20% 11% 7%

10%

0%

N=167Internet/online

Friends/colleagues

Television

New spapers

Magazines

Direct mail

Other

Where have you heard about VoIP (Voice over Internet)? Select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 8

Use of Online for Telecommunications Information One-quarter (25%) of Google Users said they would purchase VoIP for their home, but over half (57%) are not yet sure

25%

Yes No Not sure yet

57%

23%

N=167 Would you consider purchasing VoIP for your home? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 9

Use of Online for Telecommunications Information The vast majority (92%) of Google Users say they would be comfortable purchasing VoIP online

8% 0%

Yes No Not sure

92%

N=38 Assuming you were prepared to purchase VoIP, would you consider making that purchase online? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 10

Use of Online for Telecommunications Information Over 70% of all respondents select Google (over other search engines) to research and/or purchase Telecom Services 80% 71% 70%

60% 49%

50%

40%

29%

30%

20%

16%

15%

10%

5%

6%

5%

7%

5%

3%

1%

1%

0%

0%

Allthew eb

Infospace

Looksmart

Wisenut

0% Google

Yahoo

MSN

Ask Jeeves

AOL

Alta Vista

Netscape

iWon

Lycos

N=300

Other

Never use a search engine

Which, if any, of the following search engines do you use when researching or purchasing telecommunications services (phone service, Internet access service, wireless service plans)? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 11

Use of Online for Telecommunications Information Two-thirds (65%) of Google Users feel a search engine is important to their making a telecom service purchase decision 2% 2% 27%

30%

Very important Somew hat important Neither important nor unimportant Somew hat unimportant Not at all important

38%

N=238 When you purchase telecommunications services how important is using a search engine in making your purchase decision? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 12

Use of Online for Telecommunications Information The vast majority (90%) of Google Users say they would likely use a search engine after seeing an advertisement for a Telecom Service

10%

1%

43%

Very likely Somewhat likely Not very likely Not at all likely

47%

N=238 Assuming you saw an advertisement for the telecommunications service you were interested in, how likely would you be to then search for that service on a search engine? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005)

13

Use of Online for Telecommunications Information Nearly three-quarters of Google Users use a search engine to research cell phone plans and internet access services 80% 74% 68%

70%

60%

50%

40%

36% 32%

30%

20%

10%

0%

N=238

Wireless cell phone service plans

Internet access services

Traditional local/long distance phone service

Internet-based phone service (VoIP)

For which of the following telecommunications services do you use a search engine to help you conduct research on those services? Select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 14

Use of Online for Telecommunications Information Over two-thirds (69%) of Google Users use a search engine to make a purchase decision about cell phone plans and Internet access services 80%

70%

69% 66%

60%

50%

40%

37%

30%

26%

20%

10%

0% Wireless cell phone service plans

Internet access services (cable,dsl, dialup, w ireless)

Traditional local/long distance phone service

Internet-based phone service (VoIP)

N=238 For which of the following telecommunications services do you use a search engine to help you reach a purchase decision? Select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 15

Use of Online for Telecommunications Information Using a search engine, over half of Google Users located Verizon and Cingular for wireless phone services 60%

57% 54%

50%

42% 40%

40%

40% 35%

30%

20% 15% 12% 9%

10%

2% 0% Verizon Wireless

Cingular

TMobile

Sprint Wireless

AT&T Wireless

Nextel

US Cellular

Alltel

Western Wireless

Other

N=179

You indicated that you have used a search engine to locate sites that offer wireless phone service plans. Which of the following sites have you used a search engine to help you find? Select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 16

Use of Online for Telecommunications Information Using a search engine, one-third of Google Users located Verizon, Comcast, and Earthlink for Internet access services 40% 37% 35% 35% 31% 30% 27% 25% 21% 20% 17%

16%

15%

15% 11%

11%

12%

11%

10%

10%

5% 2%

r O th e

ov ad C

ox C

t es

C

ab

le

vis

io

W ar ne e Ti m

Q w

n

r

r dr un oa

U

ni

te d

R

in O nl

ne

et ze ro e/ N

ls

ou

th

t Be l

D oo /Y ah

Sp rin

SL

k in SB C

Ea rth l

ca om C

Ve r

izo

n

st

0%

N=172

You indicated that you have used a search engine to locate sites that offer Internet Access Services (ISPs). Which of the following sites have you used a search engine to help you find? Select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 17

Use of Online for Telecommunications Information Using a search engine, over half (55%) of Google Users located AT&T for traditional phone services 60% 55%

50%

47%

41% 40% 33% 30%

28%

28%

21% 20%

10% 5%

4% 1% 0% AT&T

Verizon

Sprint

Bellsouth

MCI

Qw est

SBC

IDT

Lingo

Other

N=100 You indicated that you have used a search engine to locate sites that offer traditional phone services. Which of the following sites have you used a search engine to help you find? Select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 18

Use of Online for Telecommunications Information Using a search engine, Vonage was found by Google Users most often for VoIP services 60% 55%

50%

40% 35% 32%

31%

30%

27%

18%

20%

14% 10%

7% 5%

5%

5%

4% 1%

O th er

Br oa dv oi ce

oi ce pu ls e V

oi ce gl o V

Li ng o

Pa ck et 8

O pt im um vo ic e is io n

Sk yp e Ca bl ev

Ti m e

W ar ne rD ig ita lP ho ne

Ne t2 ph on e

in g oi ce w V on er iz V

A

T& T

Ca llV

V

an ta ge

on ag e

0%

N=66

You indicated that you have used a search engine to locate sites that offer Internet-based phone services (VoIP). Which of the following sites have you used a search engine to help you find? Select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 19

Use of Online for Telecommunications Information Google Users are almost equally likely to purchase Telecom Services online as over the phone 60%

50%

48% 44%

40%

30%

20% 13%

13%

Fill in form and wait for a call back

Other*

10%

0% Purchase/subscribe to service(s) online

Purchase/subscribe to service(s) over the phone

N=238

After using a search engine to help you find a site that offers telecommunications services, please indicate how you ultimately purchase/subscribe to those services: Select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005)

*Approximately 11% said they would purchase/subscribe at a retail store

20

Use of Online for Telecommunications Information Over 50% of Google Users said they would be very/somewhat likely to purchase Internet access services and wireless phone plans online Percent saying "very" or "somewhat" likely (“4” or “5” on 5-point scale) 70%

60%

58%

51% 50%

39%

40%

34%

30%

20%

10%

0%

N=238

Internet access services

Wireless phone service plans

Internet-based phone service (VoIP)

Traditional local/long distance phone services

For each of the following telecommunications services, please rate on a 5-point scale how likely you would be to purchase that service online. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 21

Use of Online for Telecommunications Information Over half of Google Users (56%) purchased Telecom Services online in the last 12 months, mostly cell phone plans/services 50% 44%

45%

40%

35% 31% 30%

25%

20%

17% 15%

15%

13%

12%

12% 10%

10% 5% 4%

5%

2% 0% Cell Phone Plan/Service

Ringtones

Cable Internet

DSL Internet

Cell Phone Long Distance (w ithout service) Phone Service

Local Phone Service

Wireless Internet

VoIP

Other

Which, if any, of the following telecommunications products or services have you purchased/subscribed to online in the last 12 months? Select all that apply.

None of the above

N=238

Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 22

Use of Online for Telecommunications Information Almost two-thirds (64%) of Google Users are planning to purchase Telecom Services online in the next six months, especially VoIP and cell phone plans 40% 36% 35%

30% 26% 25% 25%

20% 20% 16% 15% 10%

10% 9%

10%

8%

5% 1% 0% VoIP (Voice over Internet)

Cell Phone Plan/Service

DSL Internet

Ringtones

Cell Phone (w ithout service)

Cable Internet

Long Distance Phone Service

Local Phone Service

Other

None of the above

N=238

Which of the following telecommunications services are you considering purchasing/ subscribing to online in the next 6 months? Select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 23

Use of Online for Telecommunications Information Over three-quarters of Google Users prefer to find their Telecom Services online – far more than other information channels 90% 80%

79%

70% 60% 50% 40% 31%

31%

30% 22% 18%

20%

18% 7%

10%

2%

O th er

Te le ph on e

on t Re ta il S to re fr

in e M ag az

sp ap er Ne w

m ai l Di re ct

ol le ag ue oc ia te /c Fr ie nd /a ss

W eb /o nl in e

0%

N=238

In general, how do you prefer to learn about telecommunications products or services? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 24

Use of Online for Telecommunications Information Our sample is evenly divided between men and women

51%

49%

Male Female

N=238 Are you: Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 25

Use of Online for Telecommunications Information Nearly three-quarters of the Google Users were between ages 25 and 54 years

5%

13%

8%

18-24 25-34 18%

18%

35-44 45-54 55-64 65 or older

36%

N=238 How old are you? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 26

Use of Online for Telecommunications Information Half of the participating Google Users had incomes ranging between $35K-99K 0% 2%

7%

2%

6% 10%

Less than $15,000

4%

$15,000 to $24,999 $25,000 to $34,999

6%

$35,000 to $49,999 $50,000 to $74,999 15%

$75,000 to $99,999 $100,000 to $124,999

14%

$125,000 to $149,999 $150,000 to $199,999 $200,000 to $249,999 $250,000 or more 12%

Decline to answ er

22%

N=238 Which of the following income categories best describes your total 2004 household income before taxes? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 27