New Market Research Report

AUSTIN, Texas, January 4, 1998--Technology Futures, Inc., an internationally-recognized leader in telecom forecasting, announces the publication of the report, Transforming the Local Exchange Network: Analyses and Forecasts of Technology Change, Second Edition. The report was co-authored by Lawrence K. Vanston, Ph.D. (President), Adrian J. Poitras, and Ray L. Hodges (Senior Consultants) of Technology Futures, Inc. This research was sponsored by the Telecommunications Technology Forecasting Group (TTFG), a consortium of telephone companies comprised of Bell Atlantic, Bell Canada, BellSouth Telecommunications, Cincinnati Bell, GTE TELOPS, NYNEX, Pacific Bell, Southern New England Telephone, Southwestern Bell, Sprint-LTD, and U S WEST Communications.

This report provides tremendous insight into expectations for the future of current network assets-cable, circuit, and switching-in North America.

• The LECs have over $268 billion invested in telephone plant, over 80% of which is subject to technological displacement.
• Competition, technological innovations and new services act together impacting the economic life of these assets.
• Forecasts based on historical data and company plans provide insight into the changing capability and value of their networks.

Key Conclusions Include:

• 99% of interoffice trunks are expected to be on fiber by 2000.
• 99% of all customer access lines will likely use fiber feeder by 2015.
• Distribution cables will be enhanced by xDSL, but fiber conversion will likely be complete in the 2010 to 2015 timeframe.

• Interoffice trunks are forecast to be 99% SONET by 2005.
• 94% of loop fiber capacity will likely be SONET by 2005.
• Today's digital switches are being upgraded on a modular basis, resulting in interim retirements, but they will likely be completely replaced by ATM in the 2015 timeframe.

• These forecasts provide a valuable roadmap of the changes taking place in the network for network planners and product mangers.
• The remaining lives provided are essential for financial planning, regulatory depreciation, cost studies, and highly valuable for property tax studies.

TABLE OF CONTENTS

Technology Futures helps organizations plan for the future. Drawing on proven, quantifiable forecasting methods and strategic applications, we customize our approach to the technology, financial, and marketing issues facing our clients. Our services include consulting, research, and education.

General business and industry publications regularly cite our staff members' views and the results of our research. We are always happy to be interviewed and quoted for articles on subjects within our areas of expertise

PRESS CONTACT-Please contact Carrie Vanston by telephone at (323) 436-0314 or by e-mail at cvanston@tfi.com with any questions and/or to arrange an interview with Larry Vanston, Adrian J. Poitras, Ray Hodges, or other technology and telecom experts at TFI. If you need immediate assistance and Ms. Vanston is unavailable, please contact the corporate office in Austin at (512) 258-8898 or (800) 835-3887.

PURCHASING CONTACT FOR YOUR READERS-Readers interested in purchasing the report should contact Debra Robison, Technology Futures, Inc., by telephone at (512) 258-8898 or (800) TEK-FUTR, by fax at (512) 258-0087, or send e-mail to pubsales@tfi.com. The 270-page report is priced at $1,495 in North America and $1,520 elsewhere.

Technology Futures, Inc.
13740 Research Boulevard, Building C
Austin, TX 78750
(800) TEK-FUTR (U.S. and Canada)
(512) 258-8898, Fax: (512) 258-0087
e-mail: cvanston@tfi.com