LOS ANGELES-The CDMA Development Group has said it wants to create a single name for the Code Division Multiple Access family of products.
Wireless local loop, cellular and personal communications services are based on the same specification, said Perry LaForge, executive director of the CDG. “There’s an enormous scale for CDMA but many don’t realize it’s all the same specification … We would have something that describes the technology.”
The name will not conflict with individual service brands, but could be used in conjunction with carriers’ brand names, said LaForge. The CDG is expected to select a name before next May when the group holds its next World Congress.
Whether carriers would use the CDMA name as part of their product branding is speculative. Using technology to market service has been an ongoing debate among carriers and wireless analysts. Many say customers don’t care about technology, only the service features that are offered. But at a time when technologies are in the development stage, carriers may be able to draw on the benefits of having a technology that is working better than others, such as CDMA, said Ira Brodsky, an analyst at DataComm Research Co. in Chicago.
“When technologies have matured, they tend to be just as good as the others. During the development stage is when technologies do make a difference. Carriers have to make that point,” said Brodsky. “The only way CDMA can succeed is by differentiating the technology … The carriers are working pretty carefully to come up with brand names. They’re all different. They’re (the carriers) losing a leverage to draw connection between the different names.”
Creating one name for CDMA now is a good strategy, said Brodsky. “When you have five different carriers using at least three different technologies, the consumer is going to need to know the difference. They won’t be an expert on it, but since CDMA does have significant benefits, a name should be uniform across the entire market. There’s more impact in gaining consumer awareness if they hear the same name. People move around and ask friends for recommend-ations.”
While consumers may be comfortable with a recognized brand, carriers may run the risk of muddying the waters if they have too many aspects to branding strategy, said David Kerr, director of wireless programs at Strategy Analytics in New Jersey. Sprint Spectrum L.P., for example, already has a recognizable name. And the word PCS already has a powerful association with advanced technology in the marketplace, said Kerr.
When all is said and done, consumers may not even remember a brand name.
“What are customers going to remember, brand name or the name they will get on their bill?” said Kerr.
“Bear in mind that most people think AT&T (Corp.) provides local phone service… A brand is good for externals to generate interest awareness. Customer loyalty will be attached to the operator.”
