Don't hang up; cellular companies take aim at their No. 1 marketing problem: churn

Article Abstract:

Wireless-telephone providers are struggling to stem a surging turnover rate. About 36% of cellular-phone customers have switched services in 1997, compared to 24% in 1994, according to Andersen Consulting. The development is impacting companies that draw an average $300 to $400 in phone subsidies and marketing expenses per new customer. Consumers benefit from the shift, as a growing number of providers are driving down rates. Heavy cellular users paid monthly charges of around $360 in 1995, based on a minimum 40 cents a minute. Primeco Personal Communications' recent monthly $55 rate in Texas calculates to 11 cents a minute for 500 minutes. Sprint PCS, meanwhile, bases its $75 monthly charge in many domestic markets on five cents a minute for 1,500 minutes. The number of cellular phone users since 1994 has doubled to 50 million, and the jump in PCS popularity has boosted turnover rates. Wireless providers are fighting turnover by tailoring services and fees to customers, improving service or bundling wireless and cellular services.

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Talk isn't cheap: Ads make cellular-phone services sound practically free. They aren't even close

Article Abstract:

Cellular-telephone users can take several steps to protect themselves from seemingly attractive service offers that contain hidden costs. Most companies apply roaming charges that place higher rates on calls made outside a designated area. Activation fees are cellular phone start-up costs that frequently cost $85. Landline charges are fees applied to the calls between a cellular system and a regular, wired phone system. Such calls account for the majority of calls, and the fees apply to users who make or receive the calls. 'Free' phones usually result in older and less attractive models that may inconvenience users. 'Free' minutes generally apply to strictly the airtime for calls, which can be restricted, and do not eliminate landline fees and other fees. Companies are defending their fees by noting that the charges appear in advertisements and remain reasonable in price. Consumers recently have lodged dozens of complaints with the Better Business Bureau in New York over hidden costs.

Marketing, Customer service

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Wireless, sort of; the technology is called wireless local loop, and it may be the best way around the last mile

Article Abstract:

The telecommunications industry is turning to wireless local loop, or fixed wireless, as a solution for providing telephone service to mountainous regions that in the past have been to remote to reach with regular phone lines. Many in the industry are hoping this technology will be used in suburban and urban areas as well. The long distance providers in particular are interested in installing their own lines straight to consumer's homes, but have been prohibited by the high cost. One drawback to implementing wireless local loop, is the scores of antennas that require a clear line of sight to the broadcast tower, and government agencies are hesitant to approve new antenna's and the necessary radio frequencies.

Mobile Radio Services, Wireless communications services, Communications industry, Wireless communication systems, Local telephone services, Local telephone service, Telecommunications Industry

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