Subject: [NEXTEL-1] Number Portability' Expected to Alter Landscape of Wireless Industry

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September 14, 2003 14:17

'Number Portability' Expected to Alter Landscape of Wireless Industry

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By Suzanne King, The Kansas City Star, Mo.

Sep. 14--Brace yourselves for a price war in the wireless industry.

At least that's one prediction about how the dawn of wireless "number portability" will affect consumers.

Number portability -- which will allow customers to hang onto their existing phone numbers when they switch wireless carriers -- is slated to begin Nov. 24.

While wireless companies say they want to avoid becoming mired in a battle of continuously falling prices, most industry observers predict that at least some rate reductions are inevitable as carriers scramble to keep the customers they have and win new ones.

Perhaps even better news for many disgruntled wireless customers, carriers are going to have to shape up customer service and network coverage, which even some carriers admit is sometimes lacking.

"If a company can clearly provide better service, including customer service, at a reasonable price, then consumers will be happy to stay with them," said Roger Crisman, director of telecommunications with LowerMyBills.com, an online broker of telecommunications services.

But if customers aren't getting the service they want, beginning Nov. 24, they'll be able to take their phone numbers and run.

"That's really the way it should be," said Jeff Kramer of AARP. "If a carrier is that concerned about it (losing customers), they should do something to upgrade service quality."

Without number portability, many consumers have been reluctant to leave an existing carrier -- even if service and coverage were unsatisfactory -- because they couldn't afford to lose their phone number.

Clearly, carriers know number portability will result in a little bit less tying them to their customers. And many carriers, including Overland Park-based Sprint PCS, are waging campaigns to reform.

An industry trade group, the Cellular Telecommunications & Internet Association, last week adopted a 10-part consumer code that contains steps that carriers will take to improve the satisfaction of customers.

The code, signed by 22 carriers, includes an agreement that consumers can end their service if terms of their contracts are changed drastically and a minimum 14-day period during which dissatisfied customers can return a new phone.

The steps at improving customer satisfaction may have been triggered by the looming number portability deadline. But whether widespread defections really are on the horizon in two months remains a debated question since two big factors still will keep some customers from switching.

Going to a new carrier will require buying a new phone. That's an investment some customers may not want to make. And many customers are locked into contracts with existing carriers. Breaking the contracts could trigger hefty termination fees.

While those factors should keep some customers from changing carriers as soon as the number portability deadline passes, a window of lower cell phone rates is likely to send many people out looking for a new phone when the deadline arrives.

If you're in that group, shop wisely.

Know what you're looking for before you head to the store or the Web, said Delly Tamer, chief executive and president of Let's Talk, a Web retailer of wireless services.

Buying a cell phone is much more about finding the right service plan than picking out a particular telephone. To be sure, you might be interested in a phone that allows you to text-message your friend, surf the Web or take snapshots and e-mail the pictures with the push of a button, but don't get caught up by all the fancy services.

Again, shoppers should look at how they'll use a phone before deciding which plan to buy. Plans vary widely by the number of minutes they offer, when those minutes can be used and where calls can be made.

Customers who only want a phone for an emergency or for occasional calls, for example, need a very different rate plan from those who are constantly on the phone keeping in touch with home and the office.

The Kansas City Star asked the six wireless carriers serving the Kansas City area to offer their suggestions for four types of customers.

The carriers stress that these suggestions are only a starting point -- many plans are available. Sales agents at their retail stores and in their customer service departments are trained to ask the questions that will help customers find the plan that fits best, they said.

In the meantime, the companies' suggestions, outlined in an accompanying chart, provide a glimpse of the array of plans available and perhaps illustrate why shopping for the right plan is so important.

"It is very complex," Tamer said of cell phone shopping.

To help bewildered consumers, Tamer offers this advice:

-- Go to the Web to research phones and plans and generally to get educated before going to a store or Web site to purchase a plan.

The companies have Web sites of their own, and a number of sites exist that are designed to help customers compare plans. The Web addresses include www.letstalk.com and www.myrateplan.com, and there are many others.

-- Talk to colleagues and neighbors about their wireless services. That will help you find out which carriers have good -- or bad -- coverage where you live and work.

-- Check the return policy before you buy a phone. Most companies give you a few days to test the service to be sure the coverage is strong where you need it. If you don't return it in time, you could be locked into a long-term contract with service you don't like.

-- Read the fine print so you know, for example, where free long distance service really is "free" and when night and weekend times begin and end.

-- Pick the right number of minutes for your lifestyle. If you run over the minutes in your plan, extra minutes can get costly.

"If you are getting a cell phone for the first time, be very generous with how much you think you are going to use it," Tamer said. "You're going to use it a lot more than you think."

Customers also should keep in mind that cell plans are more expensive than they look on the surface. That's because carriers add on taxes and -- in most cases -- surcharges that can add a hefty premium to a plan's list price.

Even number portability, which is supposed to be a boon to consumers, has resulted in an extra charge from many of the wireless carriers. In the metro area, Sprint, Nextel Communications and AT&T Wireless charge a monthly fee of different amounts to cover the cost of implementing number portability.

-----

To see more of The Kansas City Star, or to subscribe to the newspaper, go to http://www.kansascity.com.

(c) 2003, The Kansas City Star, Mo. Distributed by Knight Ridder/Tribune Business News. PCS, LTCW, NXTL, AWE,

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