During the next five years, personal communications services are poised to make a significant advance over cellular telephone services, offering more versatile handsets, higher quality digital connections, far greater call completion and a focus on non-automobile mobility, according to a new monograph from Deloitte & Touche Consulting Group.
However, the new PCS carriers-the C-block winners in particular-will face many challenges including the infrastructure buildout, extensive marketing and advertising, development of high-quality network operations, continued technology uncertainty as well as a complex set of regulatory difficulties, before they begin service and gain market share, the report said.
“Perhaps the most difficult issue will be competition with the other four wireless carriers in each of the major markets,” the company said. “Clearly, all wireless carriers will ultimately face competition from each other as large companies with deep financial pockets drop prices to gain market share.”
Deloitte & Touche identifies six key strategies that wireless carriers should implement now:
Increase marketing budgets dramatically to reach market segments that are most receptive to wireless service-and most likely to switch from their current service.
Analyze and understand the total cost picture. Beyond the cost of building the physical infrastructure, other important costs include sales and marketing, network operations and administrative expenses.
Take a long-term financial perspective with the realization that positive cash flows may not occur until more than five years after service begins.
Implement an effective regulatory strategy. Many hurdles still remain.
Prepare for domestic competition from large competitors with deep pockets.
Create a role in the global wireless marketplace.
