While PCS carriers aren’t slashing airtime rates for the holidays, handset prices are dropping to ranges that may persuade the reluctant customer to make a purchase.
Omnipoint Communications Services in New York is pushing Ericsson Inc.’s 388 Global System for Mobile communications handset for $50, “which is probably the lowest-priced digital phone you’ll find in the market,” said Jim Robertillo, general manager of Omnipoint’s New York market. Ericsson also is working with U.S. GSM carriers to promote its new 788 model, a handset similar in size to Motorola Inc.’s StarTac handset featured in an upcoming James Bond movie. Robertillo said Ericsson is offering a $100 rebate on the phone, bringing the cost to $200, as well as a free executive pack that includes a spare battery, car cord and case.
Western Wireless Corp. in Denver is offering the Motorola 2000 handset plus six months of service for $200. U S West Wireless is knocking $100 off its single mode PCS handset and $70 off its dual-mode handset.
Tom Murphy, director of media relations, said Sprint Spectrum L.P. is offering the Samsung Code Division Multiple Access handset for $150, plus customers can get an additional $50 off with a mail-in rebate. Qualcomm Inc. is offering Sprint PCS customers who purchase its $500 Q Phone a $100 mail-in rebate.
PrimeCo Personal Communications L.P. also reduced the price of its popular handset, Qualcomm Inc.’s QCP 1900, from $200 to $150.
“Customers seem to want to pay $150,” said Darryl Newman, director of national retail for PrimeCo. “It allows others that may have been a little reticent to get into the market.”
“Cellular historically has offered almost a free phone. With PCS, it’s the opposite. A PCS handset lends itself as a better gift type of item. You’re spending more money on the phone, but the service is less expensive,” said Mark Lowenstein, director of wireless mobile communications with the Yankee Group in Boston.
