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The Wireless Outpost News Issue #12 Vol. 5

Wednesday, September 10, 2003

Another (politically incorrect) issue of the Wireless Outpost News. This publication is produced for the soon to be educated cellular phone user community. If you know of anyone else that may have an interest in our publication, make sure to forward them a copy. Don't worry if you miss an issue of our publication, we archive to cellularphonenews.com for your convenience. Now we move forward at Mach II speed!

[Note: This newsletter is delivered Bi Weekly on Wednesday.]

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VERIZON VS. NEXTEL WAR HEATING UP ON MANY DIFFERENT LEVELS
LAWSUITS ARE UP THERE WITH NEXTEL & SPRINT PCS LEADING THE PACK
THE LATEST ON WORLDWIDE MOBILE PHONE SALES IS FINALLY HERE
POLITICIANS NOW TRYING TO DERAIL LNP FOR WIRELESS SUBSCRIBERS
NEW STUDIES OUT ON WHAT WIRELESS SUBSCRIBERS REALLY WANT
WIRELESS NEWS COMPILATIONS AND OTHER INDUSTRY TIDBITS
TRUE STORY - WOMAN'S CELL PHONE BURST INTO FLAMES, CAUSING INJURY
IRAKCELL PUTS IN BID FOR IRAQI WIRELESS RECONSTRUCTION
SURVEY SAYS WIRELESS COMPANIES JUST DON'T GET IT
REMEMBERING THE VICTIMS AND FAMILIES OF 9/11
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VERIZON VS. NEXTEL WAR HEATING UP ON MANY DIFFERENT LEVELS

We have been following the reaction of the market to Verizon Wireless introducing Push to Talk (PTT) service. It appears that not only are the PTT wireless companies going at each other in an all out war but dealers and consumers are lining up in support of the respective carrier of their choice. The war is a good thing for Verizon Wireless because it is giving them tons of free publicity and consumer awareness. Including in this publication.

So, dealers of Nextel services appear to be the most irate at the introduction of Verizon Wireless PTT services from what we can tell. Some subscribers of Nextel PTT services have decided that the additional competition from Verizon is a good thing and intend to change providers when their current service contracts expire. Complaints about Nextel's customer service were also fairly rampant. A return volley claimed the same of Verizon Wireless.

However, both wireless carriers were rated with the best customer service based on a survey done by JD Powers. There was also another survey conducted which indicated that there were many consumers who expressed an interest in PTT services but hadn't signed up with Nextel. The reason for their not subscribing to Nextel services was not given. The number given was 40% of respondents not signed up with Nextel would be interested in PTT service.

The battle has heated up with Verizon Wireless putting out a commercial that showed some subscribers of PTT service fumbling to get a signal to connect. Implying that their current PTT service doesn't have the network coverage of Verizon Wireless. For the moment, neither does Verizon Wireless as they are still rolling out the service. But that should change in the near future. In response to this attack on their services, Nextel has taken to a print media campaign with posting consumer awareness advertisements in various newspapers to include the Wall Street Journal and USA Today.

One person pointed out that Nextel was a SMR or Special Mobile Radio Network where as Verizon Wireless is a wireless network company. Others are advising patience with Verizon Wireless and letting them get a chance to dig in and increase the availability of their PTT service. Nextel is pushing the fact that they have a one second connect on their PTT service and others feel that consumers will be more concerned about coverage as opposed to the connect rate that may be a couple of seconds higher.

The coverage area is a distinct disadvantage for Nextel although they are in 293 out of 300 major markets. Though that may be true for their penetration of the major markets, Nextel doesn't have the footprint coverage that Verizon has in many of these same areas which is typically much larger. Nextel also makes the claim that they don't charge a roaming fee on the use of their PTT service as another advantage to their services.

It is also believed that the implementation of Local Number Portability (LNP) may also have a negative affect on Nextel's current subscriber base. Many business owners in the construction industry using Nextel service publish their mobile phone number in their advertisements. With the ability to keep their current telephone number and if they are displeased with Nextel service for some reason, they have a higher incentive to make the switch over to Verizon Wireless.

Possibly the rollout of Verizon Wireless PTT service caused Verizon to see this as a possibility and prompted their reversal to the opposition of the LNP implementation. It appears to be a likely scenario only because Nextel is now rolling out a service called Number Guard. This service prevents another wireless carrier from porting over a telephone number to their service without verification from the subscriber to Nextel. Supposedly this is being done to prevent slamming as is seen in the long distance industry. Personally, I can't see slamming of phone numbers in the wireless industry as being of concern but who knows anymore.

Adding that Nextel is offering Number Guard as an optional service to current and future subscribers at no charge. How many store clerks or customer service reps might "accidentally" check the option for adding Number Guard has yet to be determined. The purpose I see, for better or for worse, is that it may be a ploy to allow Nextel a last ditch effort to attempt to retain the account. However, if the person has already signed a contract with a new wireless carrier, it could cause the service change to end up being a bucket of headaches.

Frankly, I don't see the merit in the Number Guard service. It will possibly be touted as a way to prevent employees from making unauthorized switches to another carrier on a commercial account, but I just don't think that it is a problem that is prevalent enough to warrant Number Guard. Nor am I unsympathetic to Nextel's plight. This is an issue of survival for them with competing against the biggest dog in the wireless industry.

Wireless retailers are getting in on the fight too. Nextel and Verizon dealers are at each other with attacks that could be equated with grade school verbal fights. Probably in the hopes of persuading public opinion to their side of the cause. We can only advise our readers to review the facts and then make your own decision on who you think is the best choice. In this specific wireless war, based on our own research and review of the various factors involved, the outcome appears to be in favor of Verizon Wireless. Our resident psychic agrees with our assessment.

Why? Well, Verizon just put up a billion dollars in a multi-year contract for upgrades and build-out of their networks in Las Vegas, Cleveland, Myrtle Beach, Los Angeles, San Diego, Detroit, and Atlanta, to name just a few. As we have said a hundred times or more, coverage will always be king. Nextel is building alliances with other companies to help build out their network but we don't know that it will be enough or in time to compete against Verizon Wireless.

Editors Note: For those who contributed information to CPN for this article. Your identities are fully protected and as sources, we will fight any attempt to obtain this information. This article may not have come out to your expectations in a more favorable spotlight for your respective company, however, we must provide the facts and analysis as we see it. With that said, we would like to give our readers an opportunity to weigh in on this specific topic of Verizon Wireless VS. Nextel in regards to the PTT service. What do you have to say about it?

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LAWSUITS ARE UP THERE WITH NEXTEL & SPRINT PCS LEADING THE PACK

Notice that we said that Nextel and Sprint PCS were leading the pack. Well that is because we actually found one against Verizon Wireless too. The lawsuit against Verizon was actually a class action lawsuit but it is going to cost them millions. The attorneys on the gig will get about two to ten million dollars in fees. All I can say to that is Judas Priest! I knew I should have become an attorney. Now, more on this lawsuit against Verizon Wireless first.

Subscribers in Detroit, dating back to 1993, will find themselves getting free wireless airtime, a long distance calling card, or an upgrade to a new Verizon Wireless plan. The reason for the lawsuit was because Verizon Wireless was improperly billing customers for landline and wireless calls. In total, about two million people will receive compensation outside of the legal team. Sounds to me like Verizon Wireless took a serious right hook. Even though it probably doesn't really stun them much.

On to the other players, which again happen to be the smaller players of the Wireless industry. Nextel and Sprint PCS. Several class action lawsuits are pending against Nextel in California, Florida, Missouri, Pennsylvania and Tennessee. Sprint PCS is looking at lawsuits in Florida, Missouri, Ohio and Tennessee. The charges are more geared to billing practices by the carriers with Sprint PCS getting nailed more often than not on how they list various fees on their billing to make it appear to be a federally mandated fee. Nextel was nailed in Missouri for a similar practice.

T Mobile and Cingular are fighting off lawsuits with their dealers, and the rest are fighting off consumer or class action lawsuits. The class action lawsuit against Verizon Wireless took four years and was actually settled instead of a trial being conducted. With all the problems going on in the wireless industry, around twenty state attorney generals are considering taking legal action against the industry to force wireless carriers to revise their advertising, billing, contract terms, and other business practices. Cingular is also facing $80 million dollars in fines from the California Public Utilities Commission on a probe that began due to coverage quality and early termination fees.

AT&T Wireless just got popped with a class action lawsuit in Denver which claimed that AT&T was delaying the billing of roaming charges which allowed AT&T Wireless to collect on more money for the roaming than if they had billed inside of the monthly plan that coincided with the month that the calls were placed. Customers who signed up for AT&T Wireless Digital One Rate prior to March 1, 1999, and remained subscribers until at least Dec. 23, 1999, are automatically included unless they ask to be excluded from the suit. Affecting about 600,000 subscribers.

Wireless carriers are being exposed for their anti-consumer and pro-profit sneaky strategies that wireless carriers try to employ in an attempt to confuse consumers. It isn't that the fees are all that much with being relatively small in comparison to the overall wireless bill. Combine them with millions of wireless subscribers and the money to be pocketed would be in the millions. It is kind of like a company taking a dollar from every employee's paycheck over time.

Nor is it that most people really care one way or the other over such a small sum of money. It has more to do with being dishonest with the American public. Tack enough stupid little fees on there and it will probably turn off the consumer but playing the role of shyster just doesn't sit well with most people. If I saw a billing statement that said that I paid $1 for e911 services and wireless tower build-outs, I wouldn't have a problem with that as long as they really used those funds for that purpose.

Make it a $1.10 if it means that they will employ more customer service reps here in the US and will help boost the economy and overall health of America. What wireless carriers don't understand is that the American people's trust erodes with deception and Americans are fairly charitable in general especially if there is a direct benefit to us as consumers. One of these days, some wireless carriers might actually get a clue.

Although I pick on class action attorneys because some of them file really stupid lawsuits, there are just as many who are really working in the interest of the public and help to keep corporations honest. Especially those who take on the more difficult cases that involved environmental hazards to families living in tainted areas.

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THE LATEST ON WORLDWIDE MOBILE PHONE SALES IS FINALLY HERE

First an update on the US wireless market. There are now 150 million wireless subscribers in America. That is 50 million people more than there were using wireless phones only 3 years ago in the US! That is definitely a record once it is compared to the history of cellular phone use and its growth since they first came out in 1984. The rest of the world is trying to catch up to our dependence on cellular phones.

Emerging markets in eastern Europe, the Middle East, and Africa have  exceeded sales expectations. I wonder if they are counting sales in Africa to include those where European and American companies are suckered into a fraudulent transaction with sending "samples" before the company can supposedly make the purchase of a cellular phone order? For those that don't know it, when it comes to Africa, if you are not dealing directly with a wireless carrier, the transaction has a 95% probability of being a fraudulent order. Send samples and work on the transaction at great financial risk.

The other two regions that showed better than expected sales were Japan and Latin America. In total, people worldwide bought 115 million phones, with emerging markets seeking the lower priced mobile phones. If this pace continues, the manufacturers will sell a combined total of approximately 450 million phones this year. The start of the third quarter shows no cooling on purchasing wireless phones by consumers either.

Sony Ericsson, LG Electronics, Samsung, and Nokia saw a pickup in growth. Motorola and Siemens saw a decline. However, Samsung lost just over a half percentage point of market share due to the SARs epidemic costing them third place for the largest manufacturer's ranking. For the same reason, Motorola lost a very small amount of marketshare. Nokia on the other hand went up by nearly a full percentage point.

Motorola now controls 35.9 percent of global marketshare, Motorola has 14.6 percent, and Samsung has 9.9 percent. For the time being, Latin America appears to be the region to watch. It is estimated that in only four more years, Latin America will have as many wireless subscribers as we do today. The actual estimate is somewhere around 154 million. With the next four years seeing sales of between 76 to 88 million handsets in Latin  America.

Latin America will still see a boost in TDMA handset sales. With many coming from the secondary market in the US. In the interim, wireless companies south of the border are looking at switching to GSM/GPRS systems. Adding that these GSM systems are digital networks like those used in the US by Cingular, AT&T Wireless, and T Mobile USA and would not conform with European GSM specifications.

A wireless carrier in Brazil as well as other operators in South America owned by BellSouth and Verizon have chosen to switch to CDMA2000 technology. Makes sense since CDMA phones are abundant through Verizon and it will help to keep handset costs down. It is believed that only 3.5 million new TDMA handsets will be sold in Latin America as of 2004 where GSM will become a majority leader in sales growth. Again, opening the region to secondary (used handset) market sales once the conversion to GSM occurs.

TDMA technology phones in the US are almost completely phased out and within a couple of more years, there will probably be an insignificant number of TDMA units being used on the market. This same process is expected to happen in Latin America making TDMA wireless technology utterly obsolete.

After a year of strong growth beyond 460 million units, the worldwide mobile phone market will continue to expand in 2004, surpassing 500 million units for the first time in history. According to a new forecast from IDC, handset sales will enjoy 8% year-over-year growth in 2004 as shipments of 2.5G and 3G mobile phones accelerate worldwide.

"After years of 3G promises, the pieces - the handsets, the features and applications, the bandwidth, and the networks - are starting to come together to make next generation wireless a reality," said Alex Slawsby, analyst in IDC's Mobile Devices program. "Mobile phones are already an important part of everyday life in many cultures as users have embraced the technology and embedded it into their lifestyle. Enticed by new form factors, expanded features and capabilities, and falling prices, consumers are poised to begin a prolonged replacement cycle by upgrading to next-generation phones. This, combined with new demand from emerging markets, will sustain handset growth for much of the forecast period."

As the number of mobile phone users approaches 1.4 billion individuals worldwide in 2004, IDC expects 42% year-over-year growth in the 2.5G market as vendors ship more than 241 million units. Meanwhile, shipments of 3G mobile phones will surpass 48 million units in 2004, representing 140% growth over 2003. One of the features driving this growth is the emergence of "cameraphones" that incorporate digital image capture technology within the device. This segment will grow 64% in 2004, to nearly 100 million units. Similarly, IDC expects nearly 30 million converged mobile devices, or "smartphones," will be sold in 2004, representing growth of 111%.

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POLITICIANS NOW TRYING TO DERAIL LNP FOR WIRELESS SUBSCRIBERS

This is one that will show you the power of political lobbyists and special interest groups who are doing their best to corrupt the system. I don't know if I believe that the saying "for the people, by the people" applies in government anymore. It is more like, "trample the people, by the lobbyists". Two republican senators, one from Alaska and one from New Hampshire, (both from states of small populations, hmmm...) are trying to cough up an amendment in the amendment in the Senate Appropriations Committee to delay the implementation of Local Number Portability.

The amendment proposes to withhold funding to the FCC for LNP enforcement until they sort out how the FCC will deal with landline to wireless portability. I think I smell the rank stink of fish and lobster here. Probably over dinner with a lobbyist present too. It has been suggested that the implementation of Local Number Portability (LNP) could cost wireless carriers about $20 billion dollars due to the churn.

The obvious solution would be to improve customer service, billing, and coverage. The three main issues to contribute to wireless subscriber churning. As far as LNP, it is definitely a good thing for consumers, but it is also a major advantage for corporations who often had to be held to the fire with little room for negotiation on providing cellular phones to employees. Because corporations are such lucrative accounts, wireless carriers will be working fast and furiously to gain and keep business wireless subscriber accounts.

The current strategy by wireless carriers is to try and convince corporations to sign longer term contracts at the current price point in an attempt to avoid the effects of LNP churn and the associated decrease in pricing that is expected to spur further competition for wireless subscriber accounts on both the consumer and corporate levels. We expect to see wireless carriers now pushing new subscribers into even longer term contracts in an effort to polarize the effect of LNP when it is implemented.

Yes, we say when as in less than two months from now because there is enough opposition to a delay in the implementation of LNP that we can't see that happening even with special interest groups and lobbyists trying to influence the outcome. It appears as if wireless carriers are trying to get consumers to pay for the carriers' operational and management errors. They want to delay LNP because of its cost. Even though they have been collecting fees for some time now and want to add more fees to our wireless bills to further offset the cost.

If that sounds like it is lame, it is because it is entirely too lame and pathetic. To top this off, we will probably see smaller wireless carriers fighting to get bought up by a larger competitor. To the victor go the spoils so to speak. Purchasing smaller wireless carriers will allow the larger carriers to expand their coverage footprint and customer base almost overnight. However, alliances will probably be the first step in this direction. Kind of like living together before you get married.

A reminder to our readers. When reading this publication, take a couple of steps back. When I get to mud slinging, it will get everywhere. The exception to that is the FCC. They are a friend of the people for the most part and we won't be slinging any mud pies at the FCC. All other government agencies, carriers, manufacturers, lobbyists, and politicians are fair game. Is that biased? You bet. Is it racist? Why not. But only if the Nation of Islam or the Aryan Nation promise to give us lots of publicity over it. Is it politically correct? Not a chance!

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NEW STUDIES OUT ON WHAT WIRELESS SUBSCRIBERS REALLY WANT

Actually, this is going to be a combination of different studies to make it more concise and to the point. The studies involved what people want in their service and what they want in their handsets. Specifically the US market which is a bit more simple than the rest of the world in regards to the technology available on our cellular phones. One of the more interesting findings is on the gaming and bluetooth technology available.

In a recent survey, bluetooth technology was ranked as the very last out of ten things that people wanted most in their next wireless handset. Mobile gaming ranked high on the list but very few people would be willing to pay for games. Text messaging also ranked high. Two service probably more highly prized among teenagers and young adults than mature adults.

The two services that ranked highest were camera phones with one study having 50% of people saying they would look for that in their next purchase. Oddly enough, Verizon Wireless was a late player in offering camera phones as a wireless carrier. This was followed by 45% of respondents interested in PTT services. It is expected that Nextel and Verizon will have some competition coming from Sprint PCS and AT&T Wireless sometime in the future.

It appears that the lack of bluetooth technology with US wireless consumers is in the lack of appeal in the services available with bluetooth technology combined with a lack of consumer awareness to the benefits to such technology applications. The applications appeal more to the prepaid mobile subscribers in Europe and with the high tech Japanese market. The conclusion that we have come to is that Americans look to functionality first and everything else is in the nice to have category.

Next is on the consumer experience. A study by JD Powers showed that 26% of people who felt that the customer service of their respective carrier was unsatisfactory or less than satisfactory was quite likely going to switch providers. About 7% of people who felt their customer service experience was above average are still inclined to switch to another provider. Possibly suggesting that network coverage may be the key factor in their decision to switch. The most critical problem with wireless carriers seems to be in the hold time for subscribers waiting to speak to a customer service rep and in the number of calls that are required to resolve a problem. Out of nearly 17,000 people surveyed, this came out as being a consistent problem and annoyance to wireless subscribers. As far as the burden of handling customer service.

76% of people called in by phone to speak directly with customer service for their respective wireless carrier. Retailers picked up some of the burden with 21% of subscribers going directly to a retail outlet to seek customer service. The internet doesn't appear to be an effective tool for handling customer service as only 3% of people sent an email or visited the carrier's website to fill out a form. Making customer service the second reason to push consumers to switch providers.

Although no percentages were given, Nextel and Verizon Wireless scored highest in customer service satisfaction. Alltel and Sprint PCS scored the lowest with being under the industry average. If I recall correctly, Sprint PCS was in this category with a survey conducted previously. Just to give you an idea of what we mean, here is a message for a Cingular wireless subscriber who was irate. It literally dropped in my lap right as I was writing this article. Check this out.

Help!

I have been charged by Cingular Wireless for a phone that I reported that was not in use since last May..I have over 200.00 in charges in that alone and in other issues..but that one I couldn't believe. I have gotten in contact with them only to be transferred to another line, then when it was finally answered 25 min later...A lady say..this is Helen...I can not hear you, so I will have to have you call back... I couldn't believe it..it was a taped message..I tried to interpret her and not to mention I was on my home phone that is a land line, not even a hand held one...everyone can hear that phone... I called Cingular back the first lady said again she could transfer me to customer service...I told her my problems..only to have her tell me that was all she could do...so here I am wasted all my morning trying to get help. Not to mention this is not my first time trying to reach "customer service" even their online service doesn't provide emailing....mom....can anyone help me, I am so angry with them they still are billing me for services I don't have...for a phone that is not in use that hasn't been in use for month...and roaming charges as well, and I don't get charged for roaming? I want to sue if possible or be part of a class action suit? Can you tell me if one is in progress for the same problems...

Thank you,
Paula E.

These kinds of messages are all too common. We get them all the time and have to advise subscribers of the other options available to them for resolving an issue with using the resources provided by their state and the federal government. If any class action attorneys have a lawsuit going on, let us know and we will publish it here for public information.

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WIRELESS NEWS COMPILATIONS AND OTHER INDUSTRY TIDBITS

The Siemens SL56 is being introduced to the US market by AT&T Wireless and Cingular. A sliding phone with a color display. It is kind of different looking. Sliding phones are more popular in Europe than in the US for some reason. Kyocera recently introduced a sliding phone as well. It appears that manufacturers are collaborating with European fashion design companies in an attempt to make phones more appealing to US customers.


McLeod USA is not teaming up with AT&T Wireless on a multi-year agreement to offer a privately labeled Preferred Advantage Wireless package to their customers in 25 states. The usual spiel is given about the wireless carrier's benefits, blah, blah, blah. We all know how these private label type of deals work. A more notable example would be MCI Worldcom.
Continental Airlines, Southeast Airlines, Southwest Airlines, and American Airlines have all relaxed their rules regarding cellular phone use. Now you can use your cellular phones while the plane is being taxied to a gate. The deal where you have to shut off phones when the doors are closed still applies. Apparently, this is an effort by airlines to provide a more friendly customer service atmosphere. It might also have to do with the fact that fewer people are flying and competition is heating up.
New York Cellular Phone Ban is found to be a wash out and failure overall. Only a year after the ban was enacted, New York driving without a handsfree kit has fallen to the levels prior to the law being passed. Only 2% of traffic violations in New York were for violations of the cellular phone driving ban. New York drivers seem willing to take the chance that they will get caught using a phone and will have to pay a $100 fine. Only about a 100,000 tickets have been issued statewide. Previous traffic law enactments such as seatbelts showed that it will take several years of massive financial resources for police departments to employ various strategies of awareness to get to a point that the law is regularly obeyed. Some politicians must be absolute geniuses.
Nextel Partners has partnered with Morrisville State College to transform a residence hall into a completely wireless communication system. Other landline phones will be made available to those who prefer to use calling cards to make long distance calls. The College handed out about 1700 of the Nextel i30c units which included free incoming local calls, voice mail, caller ID, and unlimited Direct Connect service throughout New York.
Sony Ericsson is taking a new approach to fun. They are rolling out a new gamer accessory which is a small remote-control car that can be driven via a Bluetooth handset called the Bluetooth Car-100. It kind of looks like a muscle bound Porsche with a spoiler. It will be a limited edition collector's item with approximately seven thousand being offered on the general market. The car is about the size of a matchbox, has two speeds, and can be operated from up to around 25 feet away.
RFID Tags a dangerous technology? Radio Frequency ID tags are what retailers use to prevent shoplifting. An advanced technology has been created that could make Big Brother into the all knowing Brother. With sewing the RFID tag directly into clothing, they can pick up radio transmissions to determine how often the clothing is worn, where it is worn, and other consumer behavioral patterns can be extrapolated from the emission data that is captured. Some retailers in the UK are very interested in getting their hands of this information for marketing purposes.
Motorola has rolled out the first Linux OS based smart phone. The Motorola A760 which is to be rolled out in Europe in early 2004. Some PDA devices are already using Linux Operation Software. If the European market embraces the smartphone, future Linux OS based smartphones could be rolled out by Motorola and other handset manufacturers.

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TRUE STORY - WOMAN'S CELL PHONE BURST INTO FLAMES CAUSING INJURY

We wanted to get this out before the greed-mongers and politicians began playing on people's fears again. It is true that a woman in the Netherlands had her cell phone suddenly burst into flames. It appears she dropped the phone and when she picked it up and turned it on, the cellular phone burst into flames which burned her face and neck. An unfortunate situation to say the least. With that said, we are going to give you a rundown on how to avoid scare tactics by vendors of wireless phone accessory products.

First off, just about every cellular phone accessory item is manufactured in China or South Korea due to cheap labor. The same applies to the cellular phone handsets for the most part. You may have heard of "aftermarket" or OEM (Original Equipment Manufacturer) accessories. Aftermarket is basically generic no name brand accessories and OEM is those with a brand name so they cost more just like prescription drugs.

In Asia, the specifications for accessories are borrowed, stolen, bought, or shared. Whatever definition you want to give it. Wireless accessories then are reproduced by another company using the same specifications as the OEM products. Some of these generic manufacturers follow the specifications to the tiniest detail and some try to cut corners to save on the expense of manufacturing to offer a lower cost product.

Lithium Ion batteries are susceptible to heat. They will explode if thrown into a fire and you will not want to be anywhere near them when and if they do. The good ones are also built with an internal circuit that will deactivate the battery if the voltage goes above or below a certain voltage. This is done because the chemicals in the battery can become unstable or degrade once introduced to a specific amount of electricity and/or heat.

It is rare that an accessory manufacturer will cut corners in order to offer a lower price and risk the safety of the wireless subscriber to sell more product. Those that are really desperate may do so but that is not very common. To do so and if something should happen, that manufacturer can forget about getting any new orders. The legitimate manufacturing enterprises will do all in their power to avoid that risk and make the batteries with following the specifications closely to minimize any safety risk.

When you think about, how often do you hear of someone being hurt from the explosion of a cellular phone? Pretty much never. That isn't to say that there aren't defects in accessory products every now and then. There isn't a company out there in any industry that can claim perfection. A 3% to 5% defect rate is considered to be a very good quality in the manufacturing of wireless accessories.

It doesn't matter if you are buying an OEM product or a generic accessory. They are all made in China or Korea anyhow. If you want to reduce your risk of problems with a generic accessory products, buy those that come from South Korea. We have found that South Korea appears to have some of the highest quality standards in the world when it comes to electronic products because they have good relations with Japan. The Japanese are also very good at what they do with technology and sell their electronic parts to South Korea.

You shouldn't be afraid to purchase generic wireless accessory products. However, you should be vigilant in asking questions such as where they are manufactured and if the product has all the safety features as per standard specifications for that type of product. You may also want to ask if they are manufactured in China or South Korea. If the company selling the product doesn't know then they probably didn't do a good job on screening the vendor and bought on price alone. As always, it is a buyers beware situation.

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IRAKCELL PUTS IN BID FOR IRAQI WIRELESS RECONSTRUCTION

On July 31 the organization in charge of rebuilding Iraq, the Coalition Provincial Authority (CPA), requested proposals from wireless companies to bring wireless service to Iraq. IrakCell a consortium made of LibanCell and the Amira, Maymana and Shamara Groups, announced today their submission of a bid to install and operate cellular phone services to the Coalitional Provisional Authority.

"Freedom through communication to all is our pledge," said Hussein Rifai, Chairman - General Manager of LibanCell, the operator in the license bid. "Communication freely within Iraq and with the outside world is one of the single most important components of restoring the people of Iraq's freedom and liberty in their own eyes and the eyes of the world," Rifai added.

"What makes our bid more acceptable to the people of Iraq is the investment support of three significant Iraqi business groups who hold the long term interest of the future of this country and its people," said Ali Shamara, Chairman of the Shamara Group. The Consortium additionally enjoys the support of the thousands in the Iraqi American Community as it has enlisted as a shareholder the Amira Group, a prominent member of the US Iraqi Business Counsel.

A company can only be as strong as the breadth of its partnerships and to answer that issue Rifai confirmed that IrakCell will benefit from the long term partnerships LibanCell already established with worldwide leaders in cellular technology and services, some of whom have built in the last months a strong presence in Iraq. Such partnerships will be key in successfully deploying, in record time, the cellular service in Iraq.

The consortium partners all agree. "Building a state of the art cellular network at affordable prices across the whole of Iraq to empower the Iraqi people with communication anytime anywhere is our ultimate goal," said Medher Al Khirbit, Chairman of the Maymana Group.

In total, twelve applications have been submitted to the CPA. Another company called Watco put in a bid with a specific focus on trying to land a license for the Northern portion of Iraq. The company is US based and owned by Iraqi people. Watco along with Zozik and Irish operator Digicel want to put up 134 towers to cover the highways and cities within the first six months of their rollout. Another company called VoEx Inc. jumped into the fray.

A panel with strong Iraqi representation is now analyzing the bids with selections to have been made last week. The winners of the wireless licenses are to be announced in October by the Iraqi Administrator, Paul Bremmer.

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SURVEY SAYS WIRELESS COMPANIES JUST DON'T GET IT

Every year approximately 36 percent of wireless customers switch service providers, costing wireless companies billions of dollars, according to research compiled by American Management Systems, Incorporated. A report released by the Yankee Group concludes that wireless companies can improve the level of customer switching by adopting a "holistic" churn management process in an industry that has not seen incremental improvements in churn levels for the past three years.

The Yankee Group report, "International Wireless Churn Management Research and Recommendations," provides comprehensive insight into the causes of and cures to combat customer churn in the wireless industry. It recognizes AMS's strengths as a total solutions provider and systems integrator for churn management and notes that AMS is "well positioned to assist wireless operators that have an installed base of churn-management products, but are looking to retool their process with best practices from industries with highly sophisticated churn-management practices."

"We believe the Yankee Group report validates AMS's forefront position in delivering global, end-to-end churn management solutions," said David Meredith, AMS customer interaction and business intelligence managing director for communications, media and entertainment. "Seeking solutions for customer churn management is a top priority among wireless operators around the globe, especially as the industry prepares for the upcoming implementation of Wireless Number Portability (WNP), which is anticipated to have a significant impact on customer loyalty and churn. With the upcoming WNP regulation, we want to stay on top of the big and small issues that impact our customers."

The report surveyed the seven leading wireless operators in the U.S. and Europe to analyze the approaches and trends they employ to stem the historically high customer churn rate prevalent in the wireless industry.

Yankee's research revealed that major wireless operators are beginning to embrace the idea of integrating software solutions with business intelligence -- a major component in adopting a "holistic" churn management approach. The challenge, according to the leading operators, has been finding a company to deliver holistic solutions that integrate software and systems across the entire enterprise.

"Considering the considerable resources being committed by the wireless community to reduce customer churn, this report provides a roadmap on where mobile operators can turn for industry-leading vendors and solutions as they implement top to bottom churn management processes," said David Hawley, senior analyst for the Yankee Group.

The study identified three major reasons wireless operators have realized only modest success in their churn management initiatives.

* Historically, operators have not effectively leveraged their internal data to analyze churn behavior. Only recently have they started segmenting their subscriber base for churn management. 

* Operators have not taken a holistic approach that integrates business intelligence with operational software. They have collected churn analysis intelligence but have not executed the recommendations. 

* Operators have attempted to solve a multi-factor problem with single-factor solutions. For example, wireless companies have historically used credit scoring as the leading predictor of churn. Most wireless operators today incorporate many (from 50 to 300) subscriber variables in their predictive modeling.

The six month study also identified and researched leading wireless churn management solutions and providers. Among the recommendations for wireless operators to manage customer churn effectively was to engage business consultancies such as AMS for proven and integrated solutions.

The study also examined the similarities and differences between U.S. and European mobile operators in the area of churn management processes and software adoption. While European and U.S. providers use many similar processes and technologies, European mobile operators have taken a leadership position in the use of profitability metrics to determine the value of subscribers. European operators have also been more creative in communicating with their subscribers. Many use short message systems (SMS) which leave text messages directly on customer cell phones. The Yankee Group concluded that greater competition -- more wireless subscribers and competing mobile operators -- has been a key driver in Europe's leadership position in managing customer churn in the wireless industry.

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