After months of speculation, analysts prognostications and Internet rumors, Sprint PCS finally launched its Ready Link push-to-talk solution, bolstering the carriers’ service line up and providing the wireless industry with three nationwide operators now offering a walkie-talkie service.
Sprint PCS said its offering, which uses infrastructure components primarily from Motorola Inc.’s Winphoria division, joins Nextel Communications Inc. Direct Connect service that rolled out nationwide capabilities this past summer and Verizon Wireless’ Push to Talk service that was launched in mid-August.
The Ready Link service is similar to Verizon Wireless’ offering in that it uses VoIP technology to send voice communications over the carrier’s CDMA2000 1x-based data network. Sprint PCS said its offering would provide between two- and three-second call set-up latency and an intra-call latency that is almost as good as Nextel’s using voice compression software that allows users to begin talking almost immediately after pressing the dedicated push-to-talk button.
Analysts have noted latency issues with Verizon Wireless’ offering, which includes several seconds to set-up a call and a second or more of intra-call latency, have prevented the carrier from making a stronger impression into Nextel’s industry-leading service that provides sub-one second call setup and real-time intra-call latency.
Pricing for the Ready Link service would include a stand-alone option for $15 per month, a $5 upgrade for customers already subscribed to the carrier’s PCS Vision data service, or free for customers signed up on rate plans of $100 or more per month.
The pricing plans are competitive with Verizon Wireless, which offers its Push to Talk service as a $20 premium on its America’s Choice rate plans beginning at $40 per month, though Sprint PCS’ Ready Link service includes unlimited WAP data and messaging capabilities. Ready Link is also comparable with Nextel’s Direct Connect offering that is usually priced slightly higher per minute than Sprint PCS’ rate plans and allows customers to add Nationwide Direct Connect for an additional $10 per month.
Analysts were upbeat on Sprint PCS pricing, noting the slight premium over the carrier’s PCS Vision service should prove attractive to consumers and allow the carrier to tack on an additional $20 per month in average revenue per user from a growing portion of its customer base.
The carrier said it expected the pricing would prove appealing to consumers, but did not expect it to detract from its traditional voice services.
“We view this as incremental communications to our traditional voice service,” said Jeff Hallock, senior director of consumer product marketing at Sprint PCS. “Ready Link will allow customers to make quick connections with other Ready Link users.”
The Ready Link service will also include group calling to up to five additional users for no additional charge, allow users to use the same phone number for both traditional voice calls and for push-to-talk sessions, and enable users to manage their contacts list from either their handset or from a dedicated Web page.
In addition to the competitive pricing, analysts pointed to the compelling handset selection for the Ready Link service, which initially includes a pair of Sanyo handsets, including the RL2000 ruggedized candy-bar style handset that is similar to the Sanyo 4900 model the carrier used to launch its PCS Vision service, and the RL2500 clam-shell style handset similar to currently available 5300 camera phone. Both Ready Link devices will sell for $150 with a two-year contract and include color screens, a speakerphone and full PCS Vision access.
Sprint PCS plans to introduce an additional Sanyo handset later this year that will include both Ready Link capabilities as well as a camera that can capture and send short video clips.
Hallock added that the carrier’s handset availability compares favorably with Verizon Wireless single Push-to-Talk-enabled handset that does not include a color screen or access to Verizon’s Get It Now data service, as well as Nextel’s handsets that don’t allow roaming off of the carrier’s iDEN network in North America.
“We think our handset selection will prove compelling to both the consumer and business segments,” Hallock said.
Sprint PCS noted that while its service would prove competitive to Nextel’s offering, it would try to avoid head-to-head comparisons with Direct Connect in marketing the service to business users and would instead stress what it considered advantages including superior handsets, greater coverage and its ability to package a suite of services with parent company Sprint Corp. Analysts added Sprint PCS could also see significant uptake in the consumer market due to both pricing and handset selection.
Beyond its Ready Link launch, Sprint PCS also initiated modest rate plan changes that allow customers to extend their unlimited night calling minutes from 9 p.m. to 7 p.m. for $5 per month if they sign a new two-year contract. Cingular Wireless L.L.C. introduced a similar offering earlier this year, providing customers access to their 5,000 minutes of night and weekend calling at 7 p.m. for $7 per month.
