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Forrester Research: AWS leads next-gen business market: Nextel declines to participate in report

Despite a rash of operational difficulties during the past several years that led to its eventual sale to rival Cingular Wireless L.L.C., research firm Forrester Research Inc. found that AT&T Wireless Services Inc. was the leading wireless provider of next-generation business services.

The results, which were part of Forrester’s “Tech Choices: U.S. 2.5 and 3G Business Services” report, found that AWS has excellent business customer care and support strategies, singling out the carrier’s use of third-party partners. Forrester also found that AWS offered extensive international roaming capabilities, support for a range of devices targeting mobile business professionals and sold the most Research In Motion Ltd. BlackBerry devices in the United States.

While AWS was cited as the leading wireless provider for business customers, Forrester also noted that “strategic blunders,” issues surrounding the implementation of wireless local number portability and a lack of sufficient spectrum in key markets, resulted in higher churn for the carrier. Forrester added that those issues have bled over to Cingular’s integration of AWS and the need for Cingular to reassure its business customers of its ability to continue to support their needs.

“Thus the nation’s largest mobile provider’s future success clearly hinges on its ability to not repeat past mistakes,” Forrester wrote in its report.

Verizon Wireless posted a second-place finish in the report, with Forrester adding that the carrier has the “greatest chance to move up to the overall leader’s position,” but that could be held back by other organization priorities this year.

Forrester cited Verizon Wireless’ financial stability, network coverage, data performance service level agreements and pricing options as positives for business customers. Verizon Wireless’ negatives included its overall higher pricing plans, lack of domestic data roaming agreements and support for Wi-Fi services, as well as its reliance on parent company Vodafone Group plc for its international roaming capabilities.

Sprint PCS posted a third-place finish in the report despite what Forrester described as a robust consumer and business customer base of data users. Sprint PCS also garnered praise for its aggressive pricing and strategic partnerships, as well as its network coverage bolstered by its affiliates.

Forrester did note that Sprint PCS lags behind some of its competitors in support for third-party partners, not offering a higher-speed data network and lack of pricing innovation in key areas, such as megabyte pooling and aggregated prices.

Forrester noted that Nextel Communications Inc., T-Mobile USA Inc., Alltel Corp. and Cingular, which cited its pending acquisition of AWS, declined to participate in the report.

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