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News
Issue #2002 - 14 (April 2002)
(Updated Apr. 10, 2002)

OPINION & ADVICE

The U.S. Postal Service Will Soon End Its Foray Into Wireless Services For Customers

On April 7, the Postal Service will stop providing wireless services that include tracking packages, locating the nearest post office, and finding ZIP codes. The wireless pilot effort didn't garner enough customer support to make it a viable offering, according to a statement on the Postal Service Web site. Meanwhile, FedEx Corp. two weeks ago revealed an agreement with AT&T for its next-generation wireless technology. Giga Information Group analyst Carl Zetie points out that the contrasting wireless strategies "could almost be a parable of how to choose an application to invest in for wireless technology."

Good wireless services must be urgent and relevant to what customers are doing now. But mail sent by the Postal Service typically isn't as time-sensitive as packages sent by FedEx or United Parcel Service, so wireless tracking has limited appeal for Postal Service customers. Locating the nearest post office could be useful for business travelers, except that most hotels have business services that handle shipping needs. "Anytime you do a wireless service, it has to be aligned with the business process," Zetie says. "You have to ask the question, why would anybody do this here?"

A report from the General Accounting Office further illustrates the Postal Service's struggle to do business in the digital age. The Postal Service had hoped its E-commerce initiatives would generate $104 million in 2001, but that was an overly optimistic target. During the first three quarters of 2001, according to the GAO, the Postal Service produced less than 1% of that amount with E-commerce. - Sandra Swanson

Mobileinfo Comments & Advisory: This story is a great reminder for businesses to think before they leap into uncharted waters. It is foolish to assume that customers will come if there is a wireless application. Customers will come if they see value in a wireless application.

Note: This news release may contain forward-looking statements. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.


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