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To: Michael F. Donadio who wrote (21079)2/20/2001 5:36:15 AM
From: Jon Taulbee  Respond to of 21342
 
TeleChoice Announces North American
DSL Market Nears 3 Million Lines at
Year End 2000

BOSTON--(BUSINESS WIRE)--Feb. 13, 2001--DSL lines in service in North
America totaled 2,861,045 at the end of fourth quarter 2000, according
to new statistics published by TeleChoice, Inc.

The U.S. had 2,429,189 DSL lines in service at quarter's end. U.S. ILECs
account for 78% of the total, followed by CLECs with 21% and IXCs
with about 1%. The IXC deployment figures include only facilities-based
deployments and not resold DSL lines. They also do not include Sprint,
which counts as an ILEC because for now most of its lines are sold
through its local service subsidiaries.

Canada had 431,856 DSL lines in service. To gather this data,
TeleChoice interviews each DSL facilities-based service provider on a
quarterly basis.

For the U.S. market this represents over a 700,000 subscriber increase
from the end of third quarter 2000. Led by SBC's 251,000 new
subscribers and strong growth by Verizon and BellSouth, the ILECs
increased their base by 46%. Despite some well-publicized woes, the
CLECs still increased their installed base by 25%, resulting in an overall
U.S. market increase of 41% for the quarter.

In Canada, the installed base grew by over 150,000 subscribers,
increasing 50% over the end of the third quarter.

``The big story this last quarter was the near total collapse of the
CLEC market,'' says Adam Guglielmo, TeleChoice DSL Analyst. ``Yet the
continued strong growth of the overall market shows an undeniable
demand for DSL. We do not expect this to slow down.''

``These next two quarters will really be about who is left standing,''
adds TeleChoice DSL Analyst Pat Hurley. ``There is still room for
competition, but some of it may be coming from a different quarter than
we originally thought. Value-added services like voice over DSL should
finally start becoming a real factor by the end of this year.''

The complete set of statistics is available from TeleChoice's
www.xdsl.com site, under the ``Deployment and Projections'' section in
the left-hand column. For regular updates on the DSL industry, stay
tuned to TeleChoice's www.xdsl.com.

About TeleChoice

TeleChoice, Inc. is the strategic catalyst for the telecom industry.
TeleChoice helps telecom businesses crystallize their strategy and
value proposition and accelerate their entry into new markets. Since it
was founded in 1985, TeleChoice has developed winning business and
marketing strategies for scores of successful public and startup
companies.

More information on TeleChoice is available at
telechoice.com.

--------------------------------------------------------------------------------
Contact:

TeleChoice, Inc.
Adam Guglielmo, 303/446-0001
aguglielmo@telechoice.com
or
Pat Hurley, 858/831-0396
phurley@telechoice.com