June 07, 2004

Contact: Richard Claeys (408) 867-6430

BPL: CONSUMERS WILL TURN TO UTILITIES FOR HIGHER SPEEDS, EXTRA FEATURES, SAYS RKS/BWG REPORT

New On-Line Survey Finds High Interest, Less Loyalty Among Wired U.S. Households: Opportunities Emerge for Growing Utility Revenues

DANBURY, CT Internet-intensive consumers who use the home computer for communications and entertainment are intrigued with the prospect of high-speed broadband connections over their power lines, a new national survey has confirmed.

In fact, more than a third would drop their telephone or cable company right now and switch to the local energy utility for the higher speeds and extra features of broadband over power lines (BPL) for the same or lower price of their present service, according to the just-completed survey.

Four in 10 households surveyed believe their need for faster connection speeds will increase over the next 12 months, and dial-up and cable modem customers express the greatest interest in switching.

Additional features such as enhanced security and higher capacity for handling e-mail attachments and files would motivate computer-intensive consumers to switch from their current provider to a utility-sponsored BPL offering, the survey points out.

These are highlights from a new nationwide survey conducted the week of May 10 by RKS Research & Consulting, a national market research and opinion polling firm, and Barrington Wellesley Group, a nationwide energy and telecommunications management consulting firm. The survey includes 250 on-line interviews conducted among computer-intensive U.S. households, including dial-up, DSL, and cable modem customers from rural as well as urban/suburban communities.

The survey is the centerpiece of a combined RKS/BWG report entitled BPL Strategy for Utilities. Along with the interview results and analyses, the report contains overviews of regulatory and technological developments, as well as the strategic implications of BPL for energy and telecommunications providers.

The exclusive RKS/BWG residential Internet user survey examines consumer interest in BPL, satisfaction and loyalty to telecommunications and energy utilities, plus the features and price points that influence the decision to change Internet service providers. The analysis also profiles the typical home computer user and identifies themost attractive target market segments for early success with a BPL product offering.

The report, BPL Strategy for Utilities, is available for direct purchase through RKS at info@rksresearch.com or at the by calling RKS at (408) 867-6430. BWG clients can contact Wayne Lafferty at (972) 548-6993 for more information.

Now completing its 30th year of business, RKS Research & Consulting designs and conducts both syndicated and customized market research and public opinion polling for businesses in a variety of industries and markets, plus government agencies and associations. RKS operates from headquarters in Danbury, CT, plus field offices in New Jersey, Florida, and California. Further information can be found at: www.rksresearch.com.

Since its founding in 1990, Barrington-Wellesley Group, Inc. has completed 100 separate consulting engagements in the energy, telecommunications, and water industries. The firm provides general management consulting support to clients seeking results in the areas of business solutions, performance, and compliance. BWG operates nationwide, with headquarters in Chicago, IL. Further information is at: www.bwgi.com