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The Wireless Outpost News Issue #14 Vol. 5
Wednesday, October 15, 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.]
Visitors and readers of CPN have contacted us with their opinions and/or questions. Luckily, we don't have many readers who would take the time to berate us so we don't have to post those in the
Letter to the Editor's section. The most recent questions to CPN are interesting in that the individuals who contacted us were complaining about taxes that started to appear on their wireless bills. Then we have one reader bestowing us with compliments on our intelligent analysis of natural selection and how it applies to terrorists, and finally, an editor to editor battle.
T MOBILE TAXES
"After noticing a five dollar a month increase on my t-mobile phone bill due entirely to newly legislated taxes, I began to wonder if the taxes can legally be applied to my bill. My phone contract does not mention allowances for increases of any kind. I would think that a person holding a contract that was signed before the laws took affect should not have to pay these taxes until a contract has been renewed. I thought that you may want to address this subject."
Thanks,
House Rules
CPN Response:
Taxes supercede any form of a contract. As American citizens, we are born with a contract with the government to pay taxes. It is called a Social Security Number. Speaking of which, did you know that California has programs that pay people to make sure their kids are brushing their teeth? It gets worse. I was told of a number of programs like this one for various activities. All paid for with taxes.
MORE ON T MOBILE TAXES
"I have had a cellular phone for the last 6 or so years and prior to contracting with T-Mobile, I have used Cellular One and AT&T. I just received my first billing from T-Mobile and was appalled at the extra charges that appear on my bill, that the other phone companies never charged. I paid the other companies the amount contracted for and the 6% state sales tax. This bill has, in addition to my contracted price, eleven charges that were never revealed in the original contract and I'm wondering, since this was a hidden factor, how I can break this contract without paying them $200. I will list the fees, which comes to 1/3 more than the contracted monthly billing charge.
County surcharge
.06
County Telecom Excise (RC)
1.06
Federal Excise Tax
.58
Federal Universal Service Fund
.86
Local Sales Tax
2.45
Special Tax
.32
State Gross Receipts Tax
.20
State Sales Tax
2.38* The only fee I should pay.
State Telecom Excise
1.35
County 911
.30
State 911
1.20
"I also paid an activation fee, which I am not disputing, on which all the above taxes were also charged.
"This will take my regular monthly billing way over the $29.95/month I contracted for and I am very unhappy. I've contacted T-Mobile and they very nicely told me if I was not satisfied, I could terminate the contract by paying the $200. termination fee. I think the whole thing is highly unfair and I don't know where I can get a ruling regarding the unfair practice of adding all these taxes. Can you direct me to the proper agency?"
Marie
CPN Response:
You can contact your state Public Utilities Commission, State Attorney's General Office, and the FCC with a complaint. We will also post your comments in an upcoming issue of our publication minus your ID info for your privacy. If you would be so kind, please advise as to the county and state of residence since they are applying taxes for those local governments. Once you have filed your complaints, you may want to advise the carrier of the steps you have taken to resolve your complaint with filing with these agencies.
It is not known if these will be immediately effective in resolving these issues, however, we do know that the statistics used in the number of complaints filed with these agencies are used by Congress for citing the reason to enact new legislation. In the meantime, you may end up becoming a martyr for your cause and paying the $200 cancellation fee. Then you may want to try Cingular as they may let you use the same phone. If not, then you can try Verizon as a carrier. However, specifically ask them about the county and state taxes before signing any agreement.
Follow Up From Marie:
I have already contacted the FCC with my complaint and plan to contact the State Attorney General's office as soon as I find the proper format. I'm curious to know if you have had anyone else complain about the list of taxes. I will not pay T-Mobile $200. I'm hoping to make people aware of unfair practices and the taxes for a year would come to less than $200. I know in a sense they win, but I can opt out in a year. I'm just so annoyed that deregulation brought on all these companies and we don't know what we're buying until the bills come in. Thanks again for hearing me. Marie
RIGHT ON! AND WRITE ON!
I just wanted you to know I am in total agreement with you philosophically re your statement from your newsletter Issue #10, Vol. #5 - 8/13/2003 (copied below)
"The media is not the pulse of America and neither the media nor celebrities have the power of influencing our opinions as they like to think they have."
Also, I enjoyed your "take" on that terrorist's demeanor in court as you expressed below....LOL... and I totally agree with you.
"I guess nature has its own way of getting rid of stupid people and ensuring the survival of the fittest, doesn't it."
I love that! LOL. Thanks for you candid views and forthright approach! Hey, who said people who write tech letters can't write their own convincing views! Thank goodness, yours are the right ones, in my opinion. :)
Thanks again for your very informative newsletters.
Sincerely,
Judy M.
CPN Response.
Aw Shucks!
STOMPIN' ON THE US IS THE LATEST FAD - EDITOR TO EDITOR BATTLE
This one was a letter to the Editor of Arabic News sent by the Editor of CPN. The battle was sparked by the anti-US comments and half-truths.
Time to get rid of the US or the UN (Article)
I agree that the US should get out of the UN. It is an irrelevant political body and if they can survive without the US paying millions of dollars in dues which are obtained from US taxpayers, then more power to the UN. However, it would be interesting to see which countries would be willing to pick up the tab to fund UN operations.
In turn, we can then drop the billions of dollars we shell out in foreign aid each year. I don't think the US taxpayers are going to complain too much if that were to happen.
Arabic News Response:
We have no way of posting your views since we don't have a Letters to the Editor section for posting reader reactions.
CPN Response:
We aren't sure who is more stupid. The countries and organizations that bite the hand that feeds them or the politicians for letting the hands of the US taxpayer to be bitten so often.
If I use the word "tidbits" don't be so quick as to label me as quaint. I am about as quaint as an old smelly and worn out boot. Anyhow, wireless carriers are getting nailed with consumer oriented lawsuits, Sprint PCS announces PTT (Push To Talk) service, Iraqi Wireless contract awards have been announced. All Middle Eastern companies with very little European or American influence apparent. Then we have Samsung's TV and Cell Phone Hybrid.
Cingular is facing a lawsuit from a consumer watch dog group with the complaints listing unfair business practices and false advertising. The Foundation for Taxpayer and Consumer Rights filed a lawsuit in the Los Angeles Superior Court. The group states that Cingular pushed to increase demand knowing that it couldn't meet demand and then cashed in on early termination fees when subscribers switched carriers.
This based on a state law in California that didn't give wireless subscribers a grace period to try out the Cingular service prior to be forced into paying an early termination fee. Customers were forced to pay between $150 to $600 as the penalty for early termination. Cingular is claiming that the California Public Utilities Commission doesn't have their facts straight and the company will appeal the decision.
Nextel was tacking on a "Federal Programs Cost Recovery Fee" to wireless bills. Nextel was nailed in a lawsuit for adding this statement to the end of the bill without a full description as to the purpose of the billing. The wireless carrier will be settling the case by offering affected subscribers with free minutes. Nextel must now disclose the details to the fee as being part of their efforts to recover the cost of implementing Wireless Local Number Portability and e911 services deployment.
AsiaCell, an incumbent GSM provider, will continue providing service in the North of Iraq. Atheer, which is associated with the Mobile Telecommunications Co. of Kuwait, was awarded the Southern license in Iraq. The company is currently providing GSM service to the British military and other humanitarian efforts in the southern region. The central license for Iraq, including Baghdad, was awarded to Orascom Telecom of Egypt.
MCI had previously hoped to pick up the central Iraqi license but was banned from government contracts. Bahrain Telecommunications, Inc., which
set up an unauthorized service back in July in the Baghdad region and was forced to shut down by the interim administration, did not get a license. A waste of five million dollars but for an oil rich nation such as Saudi Arabia, a drop in the proverbial barrel.
The licensees will have 20 days to turn on initial service. Service will not considered effectively available until 95 percent of the calls in both directions go through. Bidders must outline how they will meet specific benchmarks which will become part of the conditions of the license. The licenses cannot be sold or expanded nationwide until the 12-month benchmarks are met.
Sprint PCS will be rolling out their PTT service known as ReadyLink in the near future. The company admits that they will not be able to compete with Nextel's less than one second connection but plan on offering multiple handsets with PTT capabilities as a substitute advantage. Industry analysts have been concerned by the customer service provided by Sprint PCS being a factor in the carrier's ability to withstand the Wireless Local Number Portability (WLNP) implementation. Sprint PCS took note of these concerns and
has been working to improve customer service operations to bring their customer churn to within industry standards.
Samsung's SGH-P705 is a phone and an NTSC television that’s small and light enough to fit in your shirt pocket, which also provides full GSM/GPRS capabilities. Despite the diminutive size, the device’s striking, 262,144 color TFT LCD display provides true to life images to ensure viewing pleasure. And, if a particular scene grabs your interest, SGH-P705 can even capture that image and send it to other parties using embedded multimedia messaging service support. The phone also includes 40 polyphonic ring tones and a built-in WAP 2.0 browser to match up to any other GPRS phone in the market.
HANDSET MANUFACTURERS CREATE JOINT PTT SPECIFICATIONS
New Specification from Ericsson, Motorola, Nokia and Siemens Mobile seek to provide seamless Push to Talk experience for consumers and business users around the globe. Industry leaders Ericsson, Motorola, Nokia, and Siemens mobile announced the completion of a jointly developed Push to talk over Cellular (PoC) specification based on the IP Multimedia Subsystem (IMS) as defined by 3GPP. This specification is intended to reduce marketplace fragmentation and provide end users with an easy-to-use push to talk experience wherever they may travel in the world. It was completed to meet a tremendous market interest in push to talk and IMS.
The PoC specification leverages existing 3GPP, OMA, and IETF specifications making the service easy to integrate in operators' existing access and packet core network infrastructures. The PoC specification is a bundle of six specifications including: Requirements, Architecture, Signaling Flows, Group/List Management, and two User-plane specifications (Transport and GPRS).
Ericsson, Motorola, Nokia and Siemens Mobile formed this PoC "technology co-operation" to produce a joint, fast track technology proposal to provide mobile operators with the assurance of easy integration, global interoperability and a competitive handset environment in the mobile communications market. The companies have submitted this specification to the Open Mobile Alliance (OMA) standards body for review as a baseline to provide an access-independent and globally interoperable standard for PoC.
Additionally, the PoC Specification has gained support from other industry leaders such as AT&T Wireless Services (NYSE: AWE), Cingular, Sonim Technologies, and Sony Ericsson. The specifications are currently available
online
"End-users want to be able to use any enabled handset on any available network without having to worry about if they work together. This is true for all mobile services and push to talk will be no different," said Torbjörn Nilsson, Senior Vice President, Marketing and Strategic Business Development at Ericsson. "The access-independent, interoperable, global industry specification that the major vendors now have agreed on is an important step towards ensuring that the end-users will get this."
"We realize how important interoperability is for the successful adoption of push to talk in the marketplace," said Philip Gilchrist, Vice President of Global Standards, Technical Asset Management and Advanced Solutions Realizations. "By working with mobile operators and other mobile handset and infrastructure leaders, we will be able to provide a clear PoC standard and rapidly bring interoperable solutions to market."
"Push to talk offers a fast and convenient way for connecting people globally," said Paul Chellgren, Senior Vice President, Product Management and Business Development, Nokia Mobile Phones Americas. "The common approach to this technology by key vendors will enable us to bring the traditional usage of a two-way radio to a completely new level and accelerate the take-off of this new service. There clearly is a lot of demand on the market for a standardized push to talk solution."
"Siemens mobile is committed to open standards and we see encouraging potential in push to talk," said Rudi Lamprecht, Board Member of Siemens AG. "We had positive feedback from different operators and with this joint effort we are confident to bring push to talk to a success."
"Customers want services they know are dependable, easy-to-use and affordable," said Rod Nelson, Chief Technology Officer for AT&T Wireless. "An open interoperable specification for an important IMS service like push-to-talk is a big advantage and will give customers a winning solution."
"Standards lead to services transparency in the eyes of the customer and that is the route to widespread adoption. Just as we saw with the interoperability of SMS, the ability for one customer to interact with another, without regard to their service provider, will be key to the success of this service," said Bill Clift, Chief Technology Officer - Cingular Wireless. "This is an important step in that direction."
Under these new circumstances, CPN may have to withdraw our statement about the irrelevance of PTT services as being a major component in the US. With a standard PTT service, that one little piece to the puzzle could change the face of PTT service overall. This current activity by both the handset manufacturers and wireless carriers is a substantial enough of an event that we posted this article for our
readers to review. In a few more years, PTT service may be much different than how we know it today.
Nextel's U.S. Voice and Data Services Extend Internationally to Baja California, Mexico Nextel Communications, Inc. and NII Holdings, Inc. announced that Nationwide Direct Connect(SM) service now extends internationally to the northern region of the Mexican state of Baja California. Cities covered in this region include Tijuana, Ensenada, Rosarito, Mexicali and Tecate.
When traveling in northern Baja California, Nextel customers can now take advantage of Nationwide Direct Connect and wireless data services, including two-way messaging, mobile email and the wireless web. They can use these services with other Nextel customers, who are either in the U.S. or visiting northern Baja California, and with northern-Baja-California-based customers of Nextel Mexico, a subsidiary of NII Holdings.
Nextel and Nextel Mexico customers can now travel seamlessly across the border without losing a connection. This expanded coverage takes effect automatically for Nextel customers, based on their individual plans, so they do not have to change phone numbers or phones.
Additionally, Nextel Mexico can now provide northern Baja California residents with voice and data coverage, including Nationwide Direct Connect(SM) service. They can use these offerings regardless
whether at home in northern Baja California or traveling in the U.S., or if communicating with each other or with Nextel's U.S.-based customers. They also receive special calling rates to and from the U.S.
"As the world becomes smaller, Nextel's coverage becomes larger. Many businesses of all sizes operate between the U.S. and Baja California, Mexico, including more than 800 U.S. companies with manufacturing facilities on the Mexican border near San Diego. And now Nextel can offer them what no other mobile service provider can - a long-range, digital, instant walkie-talkie service that extends from Maine to Mexicali," said Tom Kelly, executive vice president and COO, Nextel. "This announcement is also particularly important to many of our valued Hispanic customers who often visit family and friends in northern Baja California."
"Nextel and NII Holdings have successfully completed an unprecedented undertaking to bridge infrastructure and create seamless services that transcend geographical boundaries. And NII has now completed the first stage in our goal to link all our Latin American markets with the U.S.," said Steve Shindler, chairman and CEO, NII Holdings. "More than 56 million people pass annually through the border between San Diego and Tijuana, the busiest border crossing in North America. Through this partnership, a market first, our two companies now provide customers in the area with unmatched services that facilitate communication and enable business on both sides of the border."
Boost Mobile now provides Boost Walkie-Talkie service to and in northern Baja California. Boost Mobile offers pay-as-you-go wireless phones and services designed to meet the lifestyle needs of young people who live in the western U.S. Boost Mobile's services operate on Nextel's national network.
Nationwide Direct Connect service allows instant contact across thousands of miles. Nextel subscribers can now communicate with approximately 13 million other subscribers of Nextel, Nextel Partners and Nextel Mexico throughout the continental United States, Hawaii and Baja California, Mexico.
VERIZON CHAMPIONS WIRELESS LOCAL NUMBER PORTABILITY
Some of our readers may be surprised to learn that Verizon Wireless continues to champion the cause for wireless local number portability. They do so in such an aggressive manner that they are publicly challenging other wireless carriers which is in the opposite direction of the powerful lobbyist group, the Cellular Telecommunications and Internet Association of which Verizon Wireless is a member.
Verizon Wireless, operator of the nation's largest wireless network, today questioned whether other wireless companies will continue to fight the Federal Communications Commission (FCC) mandate for wireless local number portability (WLNP) or if they will join Verizon Wireless in focusing on the task of meeting the mandate by the November 24, 2003, deadline established by the government. Scheduled to go into effect in many major U.S. markets beginning this fall, WLNP will allow customers to switch wireless service providers while keeping their existing mobile phone numbers.
Verizon Wireless has for several months been preparing for wireless local number portability. The company has been diligently working to implement system upgrades, new processes and procedures to ensure it will be ready on November 24, including:
* Upgrading the nation's largest wireless network;
* Changing systems and introducing new porting systems;
* Training and communicating with employees and external distribution channels;
* Conducting initial testing of porting systems;
* Building a state of the art call center in Murfreesboro, TN.
"The lobbying and legal resources being used by our competitors to derail or delay number portability should come to an immediate end, and that energy should be re-directed to ensuring they are ready to let their customers change service providers with their wireless numbers. This is especially true since those same service providers are already passing their costs on to their customers on regular monthly bills," said Mark Tuller, vice president and general counsel of Verizon Wireless. "Americans should know: come November 24, you should be able to take your number with you. But if you are a customer of ALLTEL, AT&T Wireless, Cingular, Nextel or Sprint, your service provider is working hard against that freedom."
Last month, Verizon Wireless urged the FCC to establish firm guidelines for wireless number portability implementation, and to reject the position advanced by the "Wireless Carrier Group" (WCG), consisting of ALLTEL, AT&T Wireless, Cingular, Nextel and Sprint PCS, that would, if allowed, create new barriers to wireless customers who want to change service providers while keeping their mobile numbers with them. This was after the WCG told the FCC that their understanding of number portability will allow them to impose new barriers to switching that do not exist today, effectively derailing number portability. More recently, several carriers filed a lawsuit challenging the FCC's authority to require WLNP.
In June, Verizon Wireless president and chief executive officer Denny Strigl detailed the Verizon Wireless plan for implementing number portability: no up-front costs to current customers; no special barriers to switching from one service provider to another; fast service; and no hassle. Strigl said, "We will not charge any 'special fees' for customers who want to take their numbers with them. Our plan at Verizon Wireless is to treat porting customers the same way we treat any customer today. No change from today."
Tuller noted that the company's position on number portability is a natural extension of the Verizon Wireless customer-focused "Worry Free Guarantee."
Editor's Note:
Take notice that Verizon Wireless has reiterated that they will not charge any special fees to wireless subscribers. This again
flies directly in the face of most of the wireless carriers' intentions who are in direct competition with Verizon Wireless. It appears as if Verizon Wireless has reason to believe that they will come out to be a winner of local number portability and have no fear of the WLNP implementation.
THE CTIA AND INDUSTRY ROLL OUT 10 POINT CODE OF CONDUCT
In an attempt to avoid federal laws being passed in Congress and the California Public Utilities Commission from taking more stringent actions, the CTIA and some of their members have come out with a "voluntary" code of conduct that wireless carriers should abide by in performing their business operations. Many different parties are skeptical of this new code of conduct and strongly disagree with the CTIA's assessment of the impact on wireless subscribers if regulation is passed.
The Cellular Telecommunications & Internet Association (CTIA), in partnership with the nation's wireless carriers, unveiled a 10-part Consumer Code that enumerates voluntary industry principles, disclosures and practices. The voluntary Consumer Code is designed to help consumers make informed choices when purchasing wireless services, better understand their wireless services and rate plans, and ensure that wireless carriers continue to meet their needs.
"The wireless industry has always been different than other telecomm sectors. It is fast moving, nimble, competitive and proactive. It highly values and vigorously competes for customers," said Tom Wheeler, President and CEO of CTIA. "This voluntary Consumer Code will help ensure that wireless consumers continue to be the best informed, most knowledgeable consumers in the telecommunications sector."
"Competition has always served wireless consumers better than costly regulations. Wireless complaint rates are lower than those of more regulated telecom sectors. So, dragging wireless down with heavy regulations is simply old monopolistic think, and only hurts consumers," added Wheeler. "Wireless has always moved rapidly to address market opportunities and concerns. Once again, we're leading the way with this voluntary Consumer Code and Seal of Wireless Quality/Consumer Information."
The voluntary Consumer Code includes 10 items. All carriers displaying the new Seal of Wireless Quality/Consumer Information have agreed to abide by each of the following points:
1. Provide every new consumer a minimum 14-day trial period for new service.
2. Provide coverage maps, illustrating where service is generally available.
3. In every advertisement that mentions pricing, specifically disclose the rates and terms of service.
4. For every rate plan or contract, provide consumers specific disclosures regarding rates and terms of service.
5. On billing statements, carriers will not label cost recovery fees or charges as taxes, and will separately identify carrier charges from taxes.
6. When initiating or changing service, carriers will clearly state contract terms to customers and confirm changes in service.
7. Provide customers the right to terminate service for significant changes to contract terms.
8. Provide ready access to customer service.
9. Promptly respond to consumer inquiries and complaints received from government agencies.
10. Abide by policies for the protection of customer privacy.
Large and small wireless carriers are adopting the voluntary Code, including Cingular, AT&T Wireless, Sprint PCS, Nextel, ALLTEL, Verizon Wireless, Western Wireless, Qwest, Centennial Communications, Triton PCS, T-Mobile USA, Dobson Communications, Rural Cellular, Midwest Wireless, Southern LINC, Cellcom, First Cellular of Southern Illinois, Illinois Valley Cellular, Cellular One of East Central Illinois, Cellular South, CC Communications, Easterbrook Cellular Corporation, Appalachian Wireless and Carolina West Wireless. CTIA expects additional wireless carriers to implement the Code in the coming months as well.
Editor's Note:
State regulatory bodies, consumer watch dog groups, and other parties do not support the above code of conduct because it lacks any enforcement measure to ensure that carriers are following the guidelines and there are no penalties for not following the guidelines. The current code of conduct is not expected to derail the movement towards regulating wireless service as is done in the telecom sector.
CINGULAR INTRODUCES "FASTFORWARD" TO MARRY TWO LINES
Cingular Wireless and its parent companies SBC Communications, Inc. and BellSouth introduced FastForward™ - one of the wireless industry's first devices to marry the convenience of wireless service with the value of a wireline phone. The patented FastForward device - which works exclusively with Cingular Wireless service - will be available beginning Oct. 1.
This unique device - designed as a cradle to hold a wireless phone - simply plugs into an electrical outlet. When the Cingular Wireless phone is "cradled," calls to the wireless phone are forwarded to a designated landline phone, while the wireless phone's battery is automatically re-charged. Cingular customers with a FastForward device can get unlimited incoming wireless calls (minutes) forwarded to their landline phone in the local calling area - without the minutes counting against their monthly wireless calling plan for just $2.99 per month plus the cost of the device. The service is free to SBC residential local phone company customers who receive a single bill for Cingular wireless and landline services, and BellSouth customers who sign up for a combined bill and two other features.
For Cingular Wireless and its parent companies, SBC Communications Inc. and BellSouth, the introduction of the FastForward device is part of a larger initiative to create a new category of products that simplify the calling process and change how people communicate. By integrating wireless and wireline services and networks, the companies are delivering unique and differentiating offerings that will help SBC companies and BellSouth acquire and retain customers, while at the same time helping Cingular grow its subscriber base.
"In a sea of complex communications options, simplicity is refreshing," said Marc Lefar, chief marketing officer, Cingular Wireless. "FastForward simplifies our customers' lives by giving them greater control over their communications - wireless or wireline, at home or on the go."
Here's how FastForward works:
Simply add the landline number to the wireless phone's address book and insert your wireless phone into the FastForward cradle. An indicator light illuminates on the cradle, showing the forwarding service is active. Now, calls that would have gone to your wireless phone will ring the designated landline telephone. To deactivate, just press the CANCEL button on the front of the device and remove the wireless phone from the cradle.
FastForward will be available throughout Cingulars coverage area beginning Oct. 1, and in Puerto Rico later this year.
"FastForward is yet another example of how Cingular provides cost-effective, creative solutions for its customers. Along with RolloverSM, this will set Cingular apart from the pack of 'me-too' wireless carriers by providing a service that our research indicates customers want," continued Lefar.
"Through our initiative with Cingular we're creating truly differentiated products that will fundamentally change how our customers access and use communications services," said Ray Wilkins, president, SBC marketing and sales. "Integrating wireless with core telephone services will differentiate us from competitors and help us gain and retain customers."
"The integration of wireless and wireline has always been important to BellSouth and its customers. With virtually all of our wireline customers capable of being served by Cingular, this announcement is significant," said Dick Anderson, president customer markets, BellSouth.
The new FastForward device can be purchased as a stand-alone item at all Cingular Wireless retail locations for just $39.99. SBC residential customers purchasing new Cingular Wireless service can call their consumer service centers* and also purchase the device for the same amount plus tax, shipping and handling. (Compatible wireless phones must be purchased separately. Customers also need to add unlimited call forwarding to their Cingular Wireless service calling plan for a charge of up to $2.99 a month to not have minutes count against their wireless calling plan. The service is free to SBC and BellSouth with certain packages.)
SBC Communications Inc. and BellSouth each already have introduced service bundles that provide conveniences such as one-stop shopping, a single bill and discounts for both wireless and wireline services. FastForward is just one more benefit to being a customer of both Cingular Wireless and an SBC or BellSouth local phone company.
Initially, the FastForward device will be compatible with select Nokia and Motorola wireless phone models. Additional FastForward-compatible wireless phones, including Sony Ericsson and Siemens, should be available as early as Nov. 1.
More Wireless - Wireline Integration
FastForward is one in a series of exclusive products and services recently announced from Cingular Wireless and its parents designed to simplify the calling process for wireless customers. For example, in June, Cingular Wireless, SBC Communications Inc. and BellSouth announced MinuteShareSM, a new service enabling SBC or BellSouth residential customers to share a single bucket of wireline long distance (in states where SBC Long Distance is authorized to sell service) and wireless local and long distance minutes. MinuteShare is available in select SBC markets now and is expected to launch more broadly this autumn.
The companies also will implement a single voice mailbox for both wireline and wireless phones, giving customers greater convenience and simplicity. These strategic initiatives are aimed at creating a world of truly integrated telecommunications services. For more information about FastForward, please visit
www.cingular.com or call 866-CINGULAR.
*The FastForward device is available through SBC customer service centers only to SBC residential (not business) customers who become new Cingular customers. SBC residential customers who are existing Cingular customers will be referred to Cingular Wireless to purchase the FastForward device. Combined billing for existing Cingular customers will not be available in Connecticut until approximately Dec. 3, 2003.
FASTER, BETTER, AND EVEN SMALLER - (FOR THE TECH JUNKY)
It is quite unusual for us to post an article that requires a strong understanding of various areas of science. We found this one to be unique enough to warrant a posting as a tech junky news article. In this case, this article is relevant to Wi-Fi solutions as it applies to the IT professionals. What really caught our interest was the impact on the end user and wireless subscriber.
Broadcom Corporation, a leading provider of silicon solutions enabling broadband communications, announced that it is shipping the world's first single-chip Wi-Fi® solution, the Broadcom® BCM4317. Broadcom's AirForce One™ wireless LAN solutions are the size of a postage stamp and consume up to 97 percent less power than other Wi-Fi solutions on the market. The unprecedented size and efficiency of the one-chip offering make Wi-Fi connectivity practical for the first time for a wide range of pocketsize electronic devices, including PDAs, cell phones, digital cameras, MP3 players and other portable devices.
"Wireless LANs have seen explosive growth in recent years, due to the proliferation of Wi-Fi technology," said Tim Bajarin, Principal Analyst of the research firm Creative Strategies. "Until now, wireless connectivity has been primarily confined to PCs, due to the power and size demands of traditional wireless LAN chipsets. The introduction of Broadcom's single-chip solution is a revolutionary breakthrough for the wireless industry - one that will reach previously untapped markets and generate endless possibilities for consumers."
Integration, Size Enable New Generation of Wireless Devices
Broadcom was the first vendor to deliver all-CMOS wireless LAN and Bluetooth™ solutions, and has now leveraged that expertise to produce the first single-chip, all-CMOS wireless LAN transceiver. While competing products require multiple chips and many discrete components, Broadcom's AirForce One single-chip solution integrates a 2.4 GHz radio, power amplifier, IEEE 802.11b baseband processor, medium access controller (MAC), Tx/Rx and diversity switches and all other radio components onto a single silicon die. This unprecedented level of chip integration eliminates more than 100 discrete components and makes the one-chip module 87 percent smaller than traditional mini-PCI Wi-Fi solutions.
"Mobile device manufacturers continue to drive requirements for silicon integration by adding exciting new capabilities into smaller form factors," said Alan E. "Lanny" Ross, President and CEO of Broadcom. "By leveraging superior communications technology and unparalleled mixed signal CMOS expertise, Broadcom's one-chip Wi-Fi solution meets the size, cost and power requirements of compact mobile devices. This opens the door for us to enable countless new applications and further extends our leadership in the wireless networking market."
Innovative Power Management Extends Battery Life
Broadcom's onechip solution also offers a comprehensive power management scheme to extend the battery life of small mobile devices. This power management approach consumes an average of 70-97% less power than existing solutions and leverages the benefits of extreme integration, innovative hardware design and Broadcom's new SuperStandby™ software. SuperStandby wakes the minimum amount of circuitry for the shortest possible period of time, allowing the one-chip module to consume up to 97 percent less power than the Intel® Centrino™ wireless LAN solution in standby mode . Pocket-sized mobile devices spend a majority of their time in standby mode, and the power savings offered by the AirForce One chip solution can add several days of battery life to a Wi-Fi- enabled PDA.
Increasingly Affordable Wi-Fi Solutions
Broadcom's AirForce One chip design is the industry's most cost effective architecture for Wi-Fi chipsets. To facilitate the adoption of the single-chip solution in new wireless-enabled devices, Broadcom is sampling three reference designs that lower wireless LAN implementation costs and accelerate time-to-market for manufacturers. These designs simplify the building of cost effective modules by drastically reducing the number of off-chip components and allowing concurrent RF and silicon testing. The AirForce One module's small size and Broadcom's AirForce™ OneDriver™ software toolkit allow mobile device vendors to more efficiently integrate wireless networking into their products.
According to Compete, Inc., a predictive analytics firm, the volume of competitive consideration facilitated online will result in more than $3 billion in revenue loss industry wide during the next 12 months. The growing complexity of service plans and data features has driven customers online to help manage their accounts and evaluate carriers for future purchases.
"The internet has become an inseparable component of consumer decision-making for wireless products and services," said TJ Mahony, Compete's senior wireless analyst.
Each month approximately 10 million wireless customers use the Internet to manage their accounts (e.g., pay bills and check their minutes used). Of these online customers more than one million exhibit pre-churn behavior. According to Compete, 25% of online customers who exhibit pre-churn behavior will switch carriers in subsequent months. Pre-churn identifies a customer who has not switched carriers yet but has begun the competitive consideration process. With November 24th on the horizon, carriers are on the hook to maximize retention, minimize consumer attrition, and increase customer acquisition from defectors.
"Carriers are watching carefully as number portability nears because of the threat it presents to customer churn and the competitive landscape," added Mahony. "Analysis of timely consumer behavior of in-market wireless subscribers online will serve as the leading industry indicator of who the winners and losers will be."
This ties in with the number of hits to carrier websites we have recently noted in a previous publication issue where we pointed out the number of people visiting a specific carrier's website. Another trend that may crop up is the refusal of wireless subscribers to sign a 2 year contract with the implementation of WLNP. Wireless carriers may need to find additional incentives to convince subscribers to sign up for longer than one year on the service plan.
Along with improving customer service and coverage areas. Coverage remains king of the complaints filed by consumers with many from our experience claiming that the coverage maps provided by wireless carriers are either misleading or inaccurate. Most people now use the internet for comparison shopping by a large margin as opposed to conducting a direct purchase online. In other words, the internet is becoming more of a large library of reference material.
Although wireless services and products are available online, it is believed that most people will search online for the products and pricing for the purposes of making a comparison and then make the trip to a local retail store or outlet to speak with a person directly and obtain their purchase immediately. A side factor may be in the number of retail outlets available for access by potential wireless subscribers.
We have often lumped a few factors as the main critical points for churn and subscriber signups. In time, we will add on the secondary factors as we come across them in our analysis of what creates and diminishes wireless subscriber churn. With that said, we do not believe that online
e-commerce retailers and online affiliates of wireless carriers are having a major impact on the trend one way or the other.
Therefore we are going to add physical retail store outlet locations and coverage maps to the equation. The more physical retail stores and the accuracy of the coverage maps will probably be a distinct advantage to some wireless carriers in reducing churn and adding subscribers. Keep in mind that this is strictly an analysis on the part of CPN based on customer emails with complaints, concerns, and suggestions. More to come as we locate the information.
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