As one of the most challenging years in telecom history winds down, the wireless sector faces a variety of threats from within and outside the industry.
Which threats will prove to be mere specters and which ones turn out to be true wolves remains to be seen. The industry itself likely will play a large role in determining that.
From the outside, there is the possibility that mammoth players outside the traditional wireless industry could lead a revolution pushing people and businesses to adopt services that use unlicensed spectrum, like wireless local area networks and ultra-wideband technologies. UWB proponents include big-name players like Microsoft Corp. Wi-Fi supporters include AT&T Corp., Intel Corp. and IBM Corp.
Similarly, if the government allows mobile satellite radio operators to use their spectrum (which, like cellular, was given, not bought) to offer ancillary terrestrial-based services, carriers that paid billions for PCS spectrum could feel pain. However, none of these threats seem very real to me yet because business cases have to be hammered out, networks have to be built, and devices have to be mass-produced. (Granted, carriers should prepare for competition that could come five years down the line, but as other industries build up, one has to imagine wireless carriers will be able to counter-maneuver those attacks.)
Instead, the most tangible threats to the wireless industry in ’03 will come from inside the industry.
Poor customer service, which will lead to churn. Local number portability, which will lead to more churn. Lawsuits charging poor quality of service. Plans to implement wireless customers’ bill of rights. Driving and dialing controversies.
One of the things Verizon Wireless Inc. has done right is its Worry Free Guarantee. Basically, that means when the customer calls with a problem, it becomes the customer service rep’s problem. What empowerment. Don’t we all love the cashier at the grocery store who can negotiate a price for a product that doesn’t come up on the scanner. It’s happened to all of us. The cashier who says “How about $2?” is more agreeable than the one who tells the customer he can’t buy the product because it doesn’t ring up on the store’s inventory, or who has to call the manager over to address the problem.
The best way to combat any of the problems facing the industry is by keeping the customer base loyal. It’s an old way of doing business, but that’s because it works.
