No one can dispute the convenience of carrying a cellular phone, but should cellular phone users be prevented from accessing-for free-those wonderful and convenient 1-800 toll free numbers that landline telephone users enjoy-free?
Up until now, cellular users were charged both long-distance and airtime fees for toll-free calls, but a new service from Toll Free Cellular, based in Seattle, will change that.
The company’s founder and president, John Clark, was stuck in Seattle traffic one day in 1991, biding his time by making cellular calls to clients and trying to make arrangements for a business trip. As he dialed an airline’s 800 reservation number, Clark said to himself, “This should be a free call.” He thought that someone should do something about making free inbound calling available from cellular phones. Clark decided to take on the task himself.
The company has signed agreements with AT&T Wireless Services and U S West NewVector Group Inc. to commercially launch the service in September in the Seattle market, with plans for roll-out in other West Coast markets in 1996. Eventually, Clark would like to see the service expanded nationwide.
With the service, Toll Free Cellular says local, regional and national businesses will be able to offer cellular users toll and airtime free calling through a four to seven digit number prefixed by #800. The company said it plans to reach agreements with all nine of the nation’s leading cellular service providers to facilitate nationwide free cellular calling.
U S West already has signed agreements to provide the service in its 12 Western markets, according to spokeswoman Lisa Bowersock.
Toll Free Cellular says the concept makes sense since cellular and 800 services represent two of the fastest-growing telecommunications industry segments. It is likely that by the end of 1995, all of the 1-800 numbers available will be in use. AT&T estimates that approximately 40 percent of the 160 million long-distance calls placed via AT&T each day are to 1-800 numbers.
“Cellular carriers see this as a win-win; they can boost their airtime sales while also providing added value for their customers,” said Clark, who heads the company’s carrier negotiations.
Toll Free Cellular research showed that more than 80 percent of consumers said their brand preference would be influenced by the ability to call the manufacturer or provider of that brand from a cellular phone. More than 70 percent of consumers said they would purchase more from companies that provide free cellular calling.
A number of businesses have already signed-on for Toll Free Cellular’s service in the Seattle market, as well as national companies like Godfather’s Pizza and Hilton Hotels.
Bob Dirks, senior vice president of marketing for Hilton Hotels said, “We want to make it easier for the consumer to do business with Hilton and help them make their time more productive, so people on the road can call and make travel arrangements.”
Businesses that want the 1-800 number pay a structured per-minute charge for the #800 service. For local companies, the charge is based on airtime alone. For national firms, the charge is based on long-distance charges plus airtime fees and the customer can choose which service provider its long-distance charges go through, just like any other long-distance call.
For the caller, the background relationships are transparent. Just like with a landline toll-free or local call, there is no record of the call on any bill or statement.
The #800 subscriber receives service from Toll Free Cellular and also is billed through the company, but it is each subscriber’s own responsibility to get their number out on the street. The carriers and Toll Free Cellular are working to build awareness of the new service.
Bowersock said that U S West is working to build awareness with its customers through direct communications channels, including placing inserts in the bills of its cellular customers to let them know that this type of phone number is available for their use. Promoting individual toll-free cellular numbers is the responsibility of the subscriber.
The system is simple. According to the company, free cellular calls are received by a cellular switch operated by the subscriber’s carrier. When the call is recognized as a free call, by the #800 prefix, the call is forwarded to a Toll Free Cellular operated switch. The Toll Free switch analyzes the call, translates it into an existing landline number and connects the call.
When signing up, the subscriber can choose a number of four, five, six or seven digits. If the client’s regular 1-800 number is available, they may choose the same number for the #800 service. Hilton plans to do this.
“Our 1-800 number is 1-800-HILTON. Ideally our cellular number will be the same, again making it easier for the customer,” said Dirks.
Dirks added that the Seattle implementation is a test of the service for Hilton, but if all goes well, they will expand their number with the national service expansion. “We think it is going to be very successful,” he said.
