As wireless industry leaders continue to tout convergence as the next frontier for the industry, one Southeastern carrier has quietly pulled itself ahead of the game.
Alltel Communications Inc. significantly increased its wireless footprint as a result of the D-, E-and F-block personal communications services auction. The company spent about $145 million for 73 D and E licenses in 12 Southeastern states to fill out its cellular footprint. The licenses increase its current potential wireless customer base from about 9 million to nearly 40 million.
As Alltel launches its PCS markets next year, the company plans to offer other services-Internet access, paging and long-distance service-all on one bill. Alltel is bundling similar services today in many of its cellular markets. In a short timeframe, the company wants to offer bundled mobile phone service, wireless data, paging, Internet access, long-distance service and local phone service in all of its wireless markets.
Alltel is as close as it gets to a converged company right now, said Richard Siber, director of Andersen Consulting’s worldwide wireless consulting practice in Boston. “Out in the marketplace, it is trying to create a perception with the customer that it is one service provider, and it is doing as well or better than anyone attempting to do this.”
In March, Alltel opted to combine its wireless and wireline operations into one building in Little Rock, Ark., allowing for a combined customer care center, sales force and management team.
“We took away the lines between wireline and wireless. Our goal is to become the best converged provider that we can,” said Frank O’Mara of Alltel’s PCS Development Team. “That of course is because we have the ability to bring Virtuoso [II] to bear on all our efforts. We have a very keen opportunity to use our resources that other companies don’t necessarily have.”
The company, in conjunction with GTE Wireless Products and Services, developed Virtuoso II, a flexible client/server-based wireless customer care and billing system capable of handling large amounts of data. Alltel and GTE Wireless are deploying the system in their wireless markets. Alltel recently introduced it in Arkansas, Alabama and Oklahoma.
“Other companies are relying on multiple vendors to provide feeds to their billing systems as well as multiple customer service people,” said Siber. “A multivendor convergence platform requires wireless-related calls to go to wireless customer care people. Customers have to be routed for customer-service problems … [Alltel’s strategy] certainly gives it the perception that it is a one-stop shop.”
That one-stop shop strategy will be a critical differentiator for the company when it enters some markets as the sixth or seventh mobile phone operator, said Siber.
Alltel is ready for the marketing fight. In April, it shelled out $13.2 million for naming rights to two sports facilities, the renovated Gatorbowl stadium in Jacksonville, Fla., and a new multipurpose Civic Center being built in Little Rock.
Alltel plans to launch PCS Code Division Multiple Access service along with long-distance and Internet access in Jacksonville first, during the first quarter. The company hopes the stadium name will give it instant brand recognition when it launches there.
The company will compete with four strong carriers in Jacksonville: the largest wireless operator in the country, AT&T Wireless Services Inc., BellSouth Mobility Inc. and PCS operators Powertel Inc. and PrimeCo Personal Communications L.P. These carriers have few to no bundled-product offerings.
Alltel said it will offer optional pricing structures in Jacksonville depending on communication plan combinations. Long-distance rates include 10 cents per minute, a $5 monthly charge and a 25 cents peak and 10 cents off-peak plan. It plans to charge $20 per month for Internet access with free activation and the first month of service for free.
Alltel will offer dual-band CDMA handsets in its PCS markets. It plans to deploy CDMA technology in all of its cellular properties within the next five years.
