Just as analysts had predicted, dual-mode/dual-band handsets are an important strategy for most U.S. personal communications services operators as they build out their networks. Yet some carriers are not actively encouraging customers to buy these handsets, and drawbacks exist when customers roam on analog networks.
Sprint Spectrum L.P., which is in the midst of constructing its nationwide network using Code Division Multiple Access technology, said it only offers two dual-band/dual-mode handsets out of the nine handsets it sells. The carrier now has more than 1 million customers.
“If you’ve noticed, the recent announcements we’ve made are all about single-mode phones,” said Tom Murphy, director of media relations with Sprint PCS. “It’s a phone we make available as an option for those that need coverage in rural areas. We have roaming agreements with better than 80 percent of the roaming carriers out there. There’s a segment that this handset makes sense for … It’s not a tool that we have to rely on.”
Powertel Inc., a Global System for Mobile communications provider in the Southeast, said that though dual-mode/dual-band GSM handsets are available today, it doesn’t plan to offer them before late summer.
“It’s less of an issue for us since our contiguous footprint is so extensive,” said Kevin Inda, vice president of investor relations with Powertel. “We will not really push them heavily. We’ll offer dual-mode as an alternative for a minority of our customers that need coverage in rural areas … The story has changed. No one expected PCS carriers to build out their networks as fast as they have.”
Aerial Communications, another GSM operator, doesn’t plan to purchase dual-band/dual-mode handsets until the third quarter.
“The problems with pushing a dual-mode handset on an upbanded network may result in the customer realizing coverage is limited,” said Lawrence Swasey, analyst with Allied Business Intelligence in New York. “Anytime you’re using another mode, you’re paying a pretty penny. One of the other problems with dual-band hadsets when the network is deployed is the fact that you find yourself hitting roam mode within the network’s supposed coverage.”
There are other problems with roaming on an analog network. Roaming severly reduces the battery life of the handset, and customers lose their digital features. Cusomter service also becomes an issue because some customers have trouble linking back to their service provider, said Phil Redmons, senior analyst with the Yankee Group in Boston.
“Once they started selling dual-mode/dual-band phones, it has been a huge boon to their business,” said Redmond.
Stacy Swierenga, manager of corporate communications with PrimeCo, said about 10 percent of PrimeCo’s customers are using dual-mode/dual-band handsets.
Time Division Multiple Access carrier AT&T Wireless Services Inc. is tying together its PCS and cellular properties via dual-mode/dual-band handsets and tri-mode handsets.
