U.S. Cellular Corp. joined the push-to-talk fray with the launch of SpeedTalk, which operates on the carrier’s CDMA2000 1x data network available across its 25-state coverage area. The service will compete with similar offerings from a number of operators, including Nextel Communications Inc., Verizon Wireless, Sprint Corp. and Alltel Corp.
U.S. Cellular said the SpeedTalk offering uses Motorola Inc.’s Winphoria platform that is similar to Verizon Wireless’ Push to Talk and Sprint’s ReadyLink services, which also use each carrier’s 1x-based data network to carry voice traffic. Analysts have noted that such packet-based services typically provide slower performance than Nextel’s iDEN-based Direct Connect service and Alltel’s Kodiak Networks-provided circuit-switch Touch2Talk service, but allow greater customization and network efficiency.
U.S. Cellular noted the SpeedTalk service allows customers to connect simultaneously with up to 20 other SpeedTalk users. New groups and contacts can be added through the phones or via the Internet. Changes and additions show up instantly on users’ phones.
The carrier said that the service would appeal to both business and consumer segments, but that it likely would see the greatest adoption from families and teens.
“Press to talk has been around for several years, and today is most popular among contractors and delivery services,” noted Alan Ferber, vice president of marketing and sales operations for U.S. Cellular. “Its greatest limitation has always been its lack of reliability everywhere mobile users go. But combining the latest technology with our extensive network gives SpeedTalk the potential to be a huge success with families-including teenagers.”
Unlimited SpeedTalk usage is available on calling plans beginning at $50 per month, with current customers able to switch to a SpeedTalk plan without signing new contracts. Certain business users also can add unlimited SpeedTalk usage to their existing plans for $10 per line.
The pricing is similar to competing PTT offerings, which generally charge customers around $10 per month for unlimited usage.
U.S. Cellular noted that while the carrier was entering a market that is dominated by Nextel and has plenty of newly launched competitors, it was confident it would find its own niche.
“We know we are not the first to launch a push-to-talk service, but we think that our offering will be something of value to our customers,” said Jay Ellison, executive vice president of operations for U.S. Cellular.
Ellison added that the carrier had a similar experience with its 1x-based Easyedge service, which was not the first to market but has boosted wireless data revenues to more than 4 percent of U.S. Cellular’s total customer revenues.
Initial SpeedTalk-capable handsets will include the Kyocera KX440 and LG UX4750 models. The Kyocera phone is available for $220 before rebates, while the LG is available for $350 before rebates.
Industry observers noted that the SpeedTalk service probably will have a larger impact on U.S. Cellular’s bottom line than on the overall PTT market segment. Analysts generally say a lack of competitive offerings has prevented carriers from successfully trying to take market share from Nextel’s high-value business customers as having put a damper on what was expected to be a compelling industry segment. Others have cited the growing adoption of family plans that typically include unlimited on-network calling for no additional charge as another reason for slower-than-expected PTT adoption.
Cingular Wireless L.L.C. is rumored to be readying a PTT launch of its own using the recently ratified Push-to-talk Over Cellular protocol, which is similar to the packet-based services offered by Verizon Wireless, Sprint and now U.S. Cellular, but not interoperable.
U.S. Cellular’s Ellison added that the carrier was interested in launching interoperability with other similar networks, but that CDMA-based carriers would first need to develop data roaming agreements.
“It’s in the works, but we are not there yet,” Ellison said.
