The burgeoning push-to-talk market welcomed its latest competitor last week as Alltel Corp. announced an initial limited launch of its Touch2Talk service, joining long-time push-to-talk provider Nextel Communications Inc. and recent additions from Verizon Wireless and Sprint PCS.
Alltel said its walkie-talkie service, which uses Kodiak Networks Inc.’s RTX platform and Kyocera Corp.’s 3250 handset, would be available in roughly half of its markets beginning last Thursday with plans to expand the service to the rest of its coverage area by the end of March. Initial markets will include Little Rock, Ark.; Cleveland; Phoenix; Charlotte, N.C.; New Orleans and Tampa.
The use of Kodiak’s circuit-switched platform allows Alltel to provide the service in both its digital and analog networks, trumping the strict digital requirements of the Winphoria-based service used by Verizon Wireless and Sprint PCS, as well as Nextel’s digital-only iDEN service.
“Touch2Talk will provide instant communications on the broadest footprint of any provider in many of Alltel’s markets, as well as the best features and functionality,” explained Kevin Beebe, Alltel group president of communications.
Analysts noted Alltel’s ability to service analog markets as well as work across other networks around the world should prove advantageous for the regional carrier as its service most likely will be cross-shopped with competing push-to-talk services, though customers can only initiate a push-to-talk sessions if they are on Alltel’s network.
“It’s definitely an advantage for Alltel to be able to serve those markets and lessens their need to quickly install digital services across its entire network,” noted Adam Guy, senior analyst of wireless and mobile services at the Yankee Group. “Not every shrub needs IP coverage.”
Guy added that Kodiak’s circuit-switch platform should also provide an initial performance advantage for Alltel compared with packet-based services from Verizon Wireless and Sprint PCS, though he expects that advantage to lessen during the next 18 to 24 months.
Kodiak claims set-up times of between two and four seconds compared with around one second for Nextel and between five and 10 seconds for Sprint PCS and Verizon Wireless, with intra-call latency of less than 150 milliseconds compared with less than one second for Nextel and between two and four seconds with Sprint PCS and Verizon Wireless.
The Kyocera handset, which the handset manufacturer said was a ruggedized version of its 3245 model, will retail for $150 with a one-year contract or $100 with a two-year deal and includes a color screen and dedicated push-to-talk button. Kyocera noted that while the handset and Touch2Talk service are geared toward business users, the advanced features of the handset should also appeal to consumers.
Alltel said the Touch2Talk service could be added to any of its voice calling plans with prices starting at $5 per month for 100 push-to-talk minutes and up to $20 per month for unlimited minutes. Based on the tiered bucket plans, Alltel is placing a slight premium on its Touch2Talk service with the 20-cent-per-minute charge roughly twice what the carrier charges for traditional voice calls.
While analysts noted Alltel’s service will not have a large-scale competitive impact on existing push-to-talk offerings due to the carrier’s regional focus, the service could prove effective in the markets where Alltel will compete head-to-head with competitors, as well as provide an additional bundled option for Alltel customers.
“It’s a big win for Alltel,” Guy said. “They are already No. 1 or 2 in most of their markets, and this will provide both a premium wireless opportunity as well as add to their bundled offerings. It’s a good way to `stickify’ their service.”
