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News
Issue #2002 - 09
(March 2002)
(Updated Mar.
6, 2002)
MARKET
OUTLOOK & TRENDS
American Wireless Carriers Setting
Themselves up for Failure, study finds
According to Alexander
Resources, U.S. mobile operators will be victims of their own
mistakes and, as a result, may never fully capture the revenue
potential of the next generation of wireless data and Internet
services.
In its analysis of 2.5G and 3G wireless data services from
AT&T Wireless, Cingular, Verizon and VoiceStream, the research
firm found that these carriers have repeated the mistakes that
resulted in limited revenue and subscribers for their 2G data
services. Consequently, they may never reap the benefits of these
new high-speed services nor overcome the current declines in voice
communication subscriber growth rates and monthly revenues.
Major Problems Facing Carriers
- Service agreements and pricing plans that do not reflect the
quality and technology limitations of wireless data
communications.
- Lack of low priced 2.5G/3G smartphones and PDA/handheld and
laptop modems.
- 2.5G/3G phones, modems and terminals that do not operate on
competitive networks.
- The complexity of software used to connect a 2.5G/3G phone to
PDA/handheld and laptops.
- Unreliable, complex and difficult to use phone to PDA/laptop
communications software.
- Limited service availability.
- Lack of special in-building coverage.
- Speed and throughput that declines with user congestion.
- Lack of enhanced security.
For more information: http://www.alexanderresources.com
Mobileinfo Comments & Advisory: We
fully agree with the findings of Alexander Resources. The carriers have
got to address these issues for the sake of long term growth of the
industry. Divert some of the money from exorbitant advertising,
"too-good-to-be true" PR campaigns and unproductive R&D.
Instead, fund the issues raised above. If the carriers deliver the goods
that consumers want at reasonable prices, free publicity, word-of-mouth
and lack of credibility about unfulfilled promises will feed the
adoption and the bottom line. There is a limit to the promises you can
sell. Does this strategy give return on shareholders equity? Yes, but
only when you use the traditional long term investment viewpoint and not
the dot.com rates of return expectations of yesterday.
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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