Fourth Quarter and Year-End 2005 High-Speed Access Report

1. Fourth Quarter and Year-End 2005 High-Speed Access Report Brought To you as an Industry Service Every Quarter BY Information Gatekeepers, Inc www.igigroup.com AND B & C Consulting Services

2. With This Year-End Report We Are Introducing Two Innovations: • We Brought The Report To You In Segments, Rather Than Waiting For All Carriers To Report Their Quarterly Results. This Allowed Us To Bring You More Timely Data, While Still Giving You The Big Picture! The First Segment Provided the Major Telcos Results. This Segment Adds the Cable Results for the Entire Picture. • We Are Formatting This Report As A PowerPoint Presentation. This Will Allow The Reader To More Quickly Grasp The Important Points. And It May Be More Interesting! We Invite Your Comments On These Changes To C.Holliday@ieee.Org

3. H-S Access Report Year-End 2005 Final Segment H-S Growth Going Strong All Year! Verizon Makes IGI Analyst Look Good with Record Quarter! Cable Results Continue to be very Flat.

4. Major 2005 High-Speed Access News DSL exceeds 43% of total H-S Accesses, up from 34% at end of 2002 ! Penetration of h-s accesses reaches 44%, up from 19% at end of 2002 (Households) H-S Accesses exceed 45,000,000 up from 20,000,000 at end of 2002 Verizon sets quarter record by gaining over 600,000. This is more than 100,000 over previous record! IGI Forecasts Telco DSL to surpass Cable in 2006!

5. All-in-all it was a great quarter and a great year for the RBOCs!!! Especially Verizon!!! Major Cable Companies - CMs Added 2004 2004 2005 2005 Total 2005 2005 2005 4Q Total 1Q 2Q 1st H 05 3Q 4Q Total Charter 100,000 2,011,500 94,000 43,800 2,149,300 98,400 Comcast 437,000 6,977,200 414,000 297,000 7,688,200 437,000 Rodgers 57,000 951,400 51,600 33,400 1,036,400 53,300 Cox 125,000 2,548,549 177,000 150,000 2,875,549 150,000 Time Warner197,000 4,009,000 209,000 201,000 4,419,000 234,000 Totals 916,000 16,497,649 945,600 725,200 18,168,449 972,700 Major Telcos - DSLs added 2004 2004 2005 2005 Total 2005 2005 2005 4Q Total 1Q 2Q 1st H 05 3Q 4Q Total BellSouth 224,000 2,096,000 253,000 124,000 2,473,000 205,000 Bell Can. 91,000 1,857,000 91,000 92,000 2,040,000 106,000 Qwest 110,000 1,065,000 85,000 68,000 1,218,000 150,000 SBC 425,000 5,104,000 504,000 360,000 5,968,000 528,000 Verizon 306,000 3,559,000 385,000 278,000 4,222,000 389,000 Totals 1,156,000 13,681,000 1,318,000 922,000 15,921,000 1,378,000 Total 2,072,000 30,178,649 2,263,600 1,647,200 34,089,449 2,350,700 CM+xDSL 2040002,882,000 61,0002,207,000 425,000 6,921,000 613,0005,224,000 Here’s BellSouth with one of their bestquarters! Verizon broke all records!! AT&T (SBC) had another good Quarter! Bell Canada is somewhat lower than previous.

6. Partial ResultsMajor Telcos Only Major Cable Companies - CMs Added 2004 2004 2005 2005 Total 2005 2005 2005 4Q Total 1Q 2Q 1st H 05 3Q 4Q Total Charter 100,000 2,011,500 94,000 43,800 2,149,300 98,400 2,247,700 Comcast 437,000 6,977,200 414,000 297,000 7,688,200 437,000 8,125,200 Rodgers 57,000 951,400 51,600 33,400 1,036,400 53,300 62,200 1,151,900 Cox 125,000 2,548,549 177,000 150,000 2,875,549 150,000 3,025,549 Time Warner 197,000 4,009,000 209,000 201,000 4,419,000 234,000 265,000 4,918,000 Totals 916,000 16,497,649 945,600 725,200 18,168,449 972,700 327,200 19,468,349 Major Telcos - DSLs added 2004 2004 2005 2005 Total 2005 20052005 4Q Total 1Q 2Q 1st H 05 3Q 4Q Total BellSouth 224,000 2,096,000 253,000 124,000 2,473,000 205,000 204,000 2,882,000 Bell Can. 91,000 1,857,000 91,000 92,000 2,040,000 106,000 61,000 2,207,000 Qwest 110,000 1,065,000 85,000 68,000 1,218,000 150,000 1,368,000 SBC 425,000 5,104,000 504,000 360,000 5,968,000 528,000 425,000 6,921,000 Verizon 306,000 3,559,000 385,000 278,000 4,222,000 389,000 613,000 5,224,000 Totals 1,156,000 13,681,000 1,318,000 922,000 15,921,000 1,378,000 1,303,000 18,602,000 Total 2,072,000 30,178,649 2,263,600 1,647,200 34,089,449 2,350,700 1,630,200 38,070,349

7. Final Results

12. Cable continues to fall further behind our forecast: Telcos are gaining on the forecast, and are going to catch cable! The Gap is narrowing!!

13. SBC Has Been the Telco Leader in H-S Adds Beating All Telcos and in the Last Few Quarters Also All Cable Companies!

14. SBC- AT&T H-S Adds

15. SBC Is Averaging Over 450,000 H-S Adds!

16. This Quarter, Things Changed! Verizon Added More H-S Lines Than Any Company Ever! Almost 100,000 More!! WHY? FIOS – Verizon’s Brand Of FTTP. It Is Rolling Now, And Verizon Is Setting H-S Records!!

17. Verizon Has Been Averaging about 350,000 H-S Adds

18. 4th Q 2005 – 613,000 H-S Adds!!

19. DSL Additions for Major Telcos And Here’s the Trend Line – Not Bad!

21. This adds the results for the major cable companies - a very different story! Here is the Cable trend line – it couldn’t be flatter!

23. Final Results Compared to Forecasts Forecasts Actuals Cable – Below Forecast Telco – Just Above Forecast Total Below Forecast, but Above Linear Projection!

24. IGI Analysts Have Predicted That Telcos Would Gain Parity with Cable Companies by the End of 2006. See Our Report “The Market After the Mergers – The Telecom Economy Today,” for Details, This Latest Result with Verizon Gaining Over 600,000 H-S Lines, Gives New Credence to Our Forecast. As AT&T Starts Implementing Their Project Lightspeed This Trend Will Accelerate, especially if they implement in their new acquisition – BellSouth!

25. We predict that the Telco's will gain parity with cable this year! PARITY!! Note That Cable Led By Two-to-One In 2003!

26. Thank You For Visiting Our Report! Our Latest Reports, “The Next Generation Network – Will the RBOCs Get Googled Up?” and “The Market After the Mergers – The Telecom Market Today,” Are Available on this Site. Please Forward Comments Or Questions To C.Holliday@ieee.Org