Consumers are aware of increased competition within the wireless industry, according to a report conducted by Peter D. Hart Research Associates Inc., released at Wireless ’98 last week in Atlanta.
Seventy-one percent of the survey’s respondents said they perceived more competition among wireless companies today than they did a year ago. Furthermore, 58 percent of respondents said they considered more than one service provider before making a final selection, and 32 percent indicated they wanted their service company to make changes or that they wanted to replace their service company.
Overall satisfaction levels were high, said the report. About 70 percent of respondents indicated they were extremely or very satisfied with product quality, reliability and dependability of service and resolution of customer problems; 63 percent were satisfied with the clearness and reliability of the transmission; about 59 percent were satisfied with privacy of calls and new and innovative services; and 55 percent indicated they were satisfied with competitive prices.
“We look at ways to maintain share of mind and keep our brand name out there,” said Duane Ackerman, chairman and chief executive officer of BellSouth Corp., of competitive pressures from new wireless services entrants. Wireless products and services will become increasingly difficult to differentiate, he said.
BellSouth’s strategy has focused on building mind share by providing wireless service in markets where the company provides wireline service as well. Ackerman said the company has 98-percent wireless coverage in its wireline markets.
“What customers want is dependable and reliable service,” said Charles Lee, chairman and CEO of GTE Corp. “The winners are going to be those that do that best.”
Speaking on behalf of the personal communications services carriers providing competition to incumbent cellular carriers, Lowell McAdam, president and CEO of PrimeCo Personal Communications L.P., said, “We managed to score a few points during 1997. Many PCS companies got about 1 percent of their covered pops while the cellular carriers experienced declines in growth.
“I’m feeling very bullish about PCS,” he continued.
McAdam said PrimeCo has managed to increase its brand recognition from about 20 percent when it launched to about 80 percent today. “We’re not just a pink alien,” said McAdam, referring to the company’s mascot.
The profile of the wireless user today has shifted from a year ago. Personal use increased from 58 percent to 61 percent and more customers are spending less than $25 per month on wireless service.
Respondents indicated a strong interest in calling party pays. Fifty-four percent indicated an interest 911 location systems, followed by wireless local loop (43 percent), bundled services (42 percent) and advanced features (36 percent).
The same amount of respondents-75 percent-indicated positive feelings toward their wireless telephone company and their local telephone company, and nearly half of users with multiple wireline phone lines in their home said they have a great deal of interest in switching their second line to wireless use, according to the report.
Thomas Wheeler, president and chief executive officer of the Cellular Telecommunications Industry Association, highlighted two situations where wireless has been used as a substitute for wireline service. In rural Antelope Valley, Nev., Nevada Bell installed 53 wireless phone lines in the community where the cost to provide landline service was too high. Customers, who used to share one phone booth eight miles outside of the town for their communications needs, pay landline business rates for the wireless service. The difference is paid by a rural grant.
Another wireless local loop system was deployed in October in San Juan, Puerto Rico, where the terrain provides significant challenges for communications systems, and people were on waiting lists for basic telephone service. CTIA said more than 5,000 customers have signed up for the WLL service there.
John Zeglis, president of AT&T Wireless Services Inc., said wireless carriers need to move from mobility to “untetherdness”-getting wireless devices out of cars and into pockets and providing a service that “never depends on anyone being corded to a wall.”
