Subject: [NEXTEL-1] Phone ad spat intense

From: [email-masked]
Date: Sun, 28 Sep 2003 13:46:41 -0400

Sunday, September 28, 2003

Phone ad spat intense
Gannett News Service

Cell phone companies are attacking each other with ad blitzes as customer growth
slows and as they brace for a new rule that lets customers keep their phone
numbers when they switch providers.

Expect ''advertising and overall competition to get even more vicious; 2004 will
be an all-out war,'' Guzman & Co. analyst Patrick Comack said.

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

Cingular Wireless said competitors don't roll over unused minutes each month.
T-Mobile said it has the most ''whenever'' minutes, which have fewer restrictions
than rival plans.

Consumers, beware. Carriers point out their strengths, not their
weaknesses. ''The big risk (is) misinformation,'' said 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 percent of the U.S.  market,
have cell phones, research firm Telecompetition said. Many untapped customers are
less desirable because of credit problems. The market is ''saturated,''
Telecompetition Vice President Terry Young said.

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

By going on the attack, carriers hope to ''lock people in contracts to curtail
churn spikes,'' said Loop Capital Markets analyst Greg Gorbatenko

http://www.poughkeepsiejournal.com/today/business/stories/bu092803s4.shtml

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