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Wireless ready to cash in on online shopping boom this holiday

This holiday season, those shopping for wireless service and devices will find a culmination of new offerings, as well as traditional bargain rates on buckets of wireless minutes.

For the first time ever, shoppers will be able to use their wireless devices to purchase items over the Internet, opening up an array of new possibilities for carriers, content providers and consumers.

“It seems like every year it gets bigger and better. We have more products on the market than we ever have before,” said Danielle Perry, spokeswoman for AT&T Wireless Services Inc.

Jupiter Research, Internet commerce analyst firm, estimates 6.3 million U.S. residents will spend the majority of their holiday budget (more than 50 percent) online this year-an increase of 294 percent from 1999.

“The 1999 holiday season was the unofficial debut for many online retailers, and the fact that almost three of four Web users visited a retail site last December indicates a widespread eagerness to use the Internet as an alternative to on-site holiday gift shopping,” said Anne Rickert, measurement analyst with Media Metrix.

Jupiter also predicted online retailers with brick-and-mortar origins will dominate in terms of number of visitors and transactions.

Some wireless carriers are encouraging online activity as a means to keep costs down.

“It’s a benefit to the customers and we are able to offer those money-back promotions because we save money online as well,” Perry said.

AT&T Wireless plans to give a $30 mail-in rebate on any Nokia text messaging-enabled phone and a $75 mail-in rebate with activation of a select service plan. The biggest benefit goes to those who order a phone and AT&T Wireless service online. Consumers get a $50 rebate just for ordering over the Web, a $75 rebate with activation of a select service plan and a $30 rebate with the purchase of a select handset. Shipping and handling also are free.

Sprint PCS is luring online shoppers by giving a $100 mail-in rebate to customers who purchase and activate any two Sprint PCS phones and plans (worth $30 or more) by Jan. 14.

Due much to their novelty, mobile Web and text messaging-enabled phones and service are anticipated to be hot items this holiday season, especially among teens. Fashion face plates and accessories also are expected to sell well in the teen market. For a limited time, online retailer LetsTalk.com is featuring a hand-painted Counting Crows face plate that comes with a Counting Crows CD with purchase.

In time for the holidays, Yahoo! Inc. announced its Yahoo! Shopping service is available on Web-enabled mobile devices. Users can buy books, music, videos or DVDs through the portal.

“This will be an incredibly valuable tool for people on the go, comparison shoppers and impulse purchasers alike,” said Anurag Mendhekar, director of Yahoo! Everywhere.

On Nov. 24, one of the busiest shopping days of the year, passengers in Yahoo! Shopping cabs in San Francisco received a free ride and a chance to shop on the Web using Motorola Inc.’s Web-enabled phones and the Sprint PCS Wireless Web.

Prepay has been a popular gift choice for several years, and this year will be no different. Verizon Wireless has National Prepay Wireless Service cards starting at $30, and LetsTalk.com has prepay phone kits, which include a phone and minutes of talk time, ranging from $70 to $150.

“National Prepay is the perfect gift for those who have thought about getting mobile-phone service but aren’t quite sure or are afraid of the cost, but are still interested in trying it,” said Jeffrey Nelson, spokesman for Verizon Wireless.

Post-pay wireless minutes are going for a bargain as well. Sprint PCS is running a special promotion where those who sign a one-year Sprint PCS Advantage agreement can get 1,500, 2,000 or 3,000 minutes per month for $35, $50 or $75, respectively. This includes nationwide long distance.

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