Subject: [NEXTEL-1] All Bets are Off in the Carriers' War to Win Customers

From: [email-masked]
Date: Mon, 22 Sep 2003 13:23:28 -0400

All Bets are Off in the Carriers' War to Win Customers

As wireless carriers’ subscriber growth slows and the number portability deadline
approaches, carriers are gearing up for quite a fight. Companies are flooding the
market, advertising enticing deals to attract new business.  Analysts are
expecting the subscriber wars to be vicious. Nextel and Verizon wireless are the
most notable warring factions as they take potshots at each other's walkie-talkie
services. Verizon Wireless recently entered Nextel's coveted "push-to-talk" arena
causing Nextel to defend its turf. Sprint and AT&T Wireless are fighting over
business customers, each claiming their networks to be better. Cingular is touting
its roll over minutes plan, and T-Mobile boasts the most "whenever" minutes.
Customer are warned by consumer protection  groups to read the fine print - most
companies don't point out their  weaknesses.

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Phone number rule spawns wireless ad war
Fri Sep 19, 9:00 AM ET

By Andrew Backover, USA TODAY

Cell phone companies are attacking each other with ad blitzes as customer growth
slows and as they brace for a new rule that will let customers keep their phone
numbers when they switch providers.
Expect "advertising and overall competition to get even more vicious," says Guzman
& Co.
analyst Patrick Comack. "2004 will be an
all-out war."

Nextel Communications, known for its
"push-to-talk" walkie-talkie service, criticizes
Verizon Wireless (news - web sites)' similar
service as "push to wait" because of
connection delays. Verizon counters with ads
claiming that its service is available in more places than Nextel's.
Sprint PCS targets AT&T Wireless' business
customers with ads that tout its network as
bigger and better.

Cingular Wireless says competitors don't roll
over unused minutes each month. T-Mobile
says it has the most "whenever" minutes,
which have fewer restrictions than rival plans.
(Video: See Cingular's ad)

Consumers, beware. Carriers point out their
strengths, not their weaknesses. "The big risk
(is) misinformation," says Chris Murray of
advocacy group Consumers Union. "Carriers
are fighting spin wars instead of improving
service quality and dropping prices to attract
customers." Behind the spin:

Slower growth. About 154 million people, or 54% of the U.S. market, have cell
phones, research firm Telecompetition says. Many who don't are less desirable as
customers because of credit problems. The market is "saturated," Telecompetition
Vice President Terry Young says.

Portability. On Nov. 24, regulators will require that wireless phone numbers be
portable. About 9 million customers plan to switch immediately; 39 million more
plan to switch, or "churn," for better offers, says The Management Network Group,
a consulting firm.

By going on the attack, carriers hope to "lock people in contracts to curtail
churn spikes," says Greg Gorbatenko, analyst with Loop Capital Markets.

Standing out. Sprint PCS spokesman Dan Wilinsky says its research showed AT&T
Wireless to be the "perceived" leader. "We want customers to take a fresh look,"
he says.

AT&T Wireless is "flattered" by the ads "because they are a tacit acknowledgement
of (our) leadership," spokesman Mark Siegel says.

Nextel's Audrey Schaefer says, "The other folks might call it the same service,
but it's not even close."

http://story.news.yahoo.com/news?tmpl=story&cid=711&ncid=738&e=5&u=/usatoday/11860122

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