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Customer Testimonial:
"
Due to significant transitions in our facilities, coupled with telecom personnel changes, we weren’t able to properly reconcile active circuits with billing. Total Solutions Group identified over $20,000 per month in unused connectivity which we cancelled within days, generating considerable immediate savings."
--VP Finance, Michigan Banking Group
 

 April 2005 - Tips and Talk on Telecom  

Volume 3, Issue 4 

It's Time for Wireless Carriers to Shed Their Tech-Phobia

Some tech-conscious cell phone shoppers have a new complaint: Verizon Wireless can't hear them now, and that's not good.

What are they trying to say to that carrier? They'd like to use PalmOne's sleek Treo 650 "smartphone," which Sprint has been selling since December. They'd like more phones that use Bluetooth wireless -- and they don't want Verizon disabling parts of that feature for its own purposes. Some just want a full set of phones that are only phones, without the digital cameras banned at their workplaces.

Verizon isn't the only target of these complaints -- other carriers have done the same things. But customers who don't like the phones their carrier sells can often only switch to another service that may have worse coverage. Despite immense advances in technology, we face the same basic constraints that our grandparents did when choosing what color of rotary-dial phone to get from the Bell System: You can only buy what the phone company wants to sell.

When cell phones were used only for talking, this might not have mattered much. Now phones are the equivalent of handheld computers -- but unlike computers, they don't arrive in everybody's stores at the same time and with all their promised features intact.

There's no better example of this than carriers' iffy support for Bluetooth wireless, a technology that lets a cell phone quickly beam data to and from other nearby devices -- other phones, handheld organizers, printers or computers. Eight years after its unveiling, despite growing customer interest and increasingly widespread Bluetooth support in computers, many carriers still give Bluetooth the back of their hand.

At worst, they'll offer it only on one or two token phones, and with its more useful features disabled. Neither Sprint nor Verizon, for example support file transfer via Bluetooth. So instead of sending your camera phone's pictures to your computer via Bluetooth, you're expected to e-mail them to yourself, running up airtime and picture-messaging charges along the way.

Other convenient Bluetooth features, such as wireless address-book synchronization or the option to use a phone as a wireless modem with a Bluetooth-enabled laptop, are also often absent or shut off. It's as if some carriers regard this technology as little more than a way to sell you a $50 Bluetooth headset instead of a $10 corded model.

If you could buy your phone from a source besides your carrier -- somebody with no vested interest in steering you to expensive data services -- this wouldn't be a problem. But that's a difficult-to-impossible task in the U.S. market.

For one thing, carriers sell phones at a subsidized price that they recoup over a long stream of monthly bills. Unsubsidized models cost more, hundreds of dollars extra in some cases. For another, about half of the market can't even pay extra to use a phone their carrier doesn't sell.

Verizon, the second-largest carrier in the United States, will at least allow customers to use makes and models of phones similar to those that it offers. Sprint, the third-biggest, won't permit even that. Both say that they do this to maintain the quality of their service, although any cell phone sold must already pass testing from government and industry bodies.

These firms can exert that level of control because they don't use a system employed by the other nationwide carriers, Cingular, T-Mobile and Nextel. Those firms all sell phones that store a customer's account data on a tiny subscriber identity module (SIM) card that can be moved from one phone to another.

This SIM card is a core feature of the technology Cingular and T-Mobile use, GSM (shorthand for global system for mobile); Nextel, which uses a different system called iDEN, saw fit to adopt the SIM card as well.

Customers can use this to expand their choice in various ways. They don't have to choose one model of phone; they can purchase a powerful but bulky phone to carry around the office, then buy a lighter, flashier model to wear in the evening. Or they can take their phones from one carrier to another -- once, that is, they undo the locks that Cingular and T-Mobile place to prevent another carrier's SIM card from functioning.

T-Mobile will unlock a phone after the first 90 days of a contract; Cingular will do so once a contract has ended and a customer is moving to another carrier. Customers can unlock phones on their own, but the procedure can be tricky. (This isn't a factor with Nextel, as no other major carrier uses iDEN.)

Sprint and Verizon phones use a different wireless standard called CDMA, but there's no reason their phones could not employ a similar subscriber-identity card. Industry developers came up with that exact thing back in 2001, called the removable user identity module (R-UIM), with the same size and shape as a SIM card.

A few carriers in Asia now sell phones using these cards -- but in the United States, Sprint and Verizon seem to think that R-UIM spells "ruin" for their businesses and have declined to adopt it. So their subscribers can eat only what these companies put on their plates.

This tension is only going to get worse, as the price and features of such phones as the Treo 650 and comparable Windows Mobile devices increase. How long will people spending hundreds of dollars for these gadgets consent to having their use of them dictated by their carrier?

It might be a long time. AT&T's lock on landline phone hardware lasted for decades, until in 1968 the Federal Communications Commission ruled that Ma Bell could not forbid the use of other companies' hardware on its lines. Among other unanticipated benefits, that helped open the Internet to anybody with a phone line. What might we be passing up now?

 


Time Warner Cable Begins Cell Phone Trials

Time Warner Cable has begun testing its own mobile-phone service in Kansas City, according to a company source, signaling a move by the cable industry to compete against local phone companies' wireless dominance.

Earlier this week, Time Warner Cable started marketing Sprint mobile phones to its subscribers in Kansas City, Mo. While the phones are branded and operated by Sprint, Time Warner Cable is handling billing procedures and marketing for the service, the source said.

A Time Warner Cable spokesperson confirmed that the company is "planning a trial in Kansas City with Sprint," but declined to say whether the trial has begun.

For many months, cable executives have hinted at their interest in offering cell phone service to their customers. During parent company Time Warner's quarterly earnings conference call in November, CEO Richard Parsons said the company would "begin to explore relationships in the wireless space."Cable companies have had considerable success in bundling their TV programming with broadband Internet access and, in some cases, phone service. But wireless has always been a missing piece in their package of entertainment and communications services.

"We know, because of consumer behavior, that wireless will be an important part of that bundle," Don Logan, chairman of Time Warner's media and communications group, said in November.

The fact that the Baby Bell phone companies own most of the nation's cell phone customers does not sit well with cable companies. The nation's two largest services, Cingular Wireless and Verizon Wireless, are owned by the Bells. But Sprint, which is in the process of acquiring Nextel Communications, remains independent.

The Bells are also stepping into new territory to compete against their rivals. SBC Communications and Verizon Communications plan to spend billions of dollars upgrading their networks to speedier fiber-optic lines to offer video programming to their customers. The Bells have also heavily discounted their DSL services in hopes of chipping away at cable's nearly 2-to-1 market share lead in broadband.

Time Warner Cable has remained mum about its wireless plans, and is hoping to learn how to operate the business. If the tests go well, Time Warner Cable will one day offer its own branded phones, although no names have been decided, according to the company source.

 


Why Choose Total Solutions Group?

  • We work on a contingency fee basis so we earn our fees and you determine our value
  • We are completely independent of provider and vendor relationships
  • Over 30 years of Telephony Experience
  • We are MICTA approved Telecom Auditor
  • TSG provides Leasing & Financing opportunities
  • Servicing School Districts, Municipalities, and many other Fortune 1000 Businesses
  • We audit the Physical Layer, Transport Layer and Service Layer
  • We saved our clients over $6,000,000 in Telecom expenses in 2004!




Join our growing list of clients in 2005!
Finally, A consulting firm that pays for itself!



Customers Willing To Pay Extra For Better Voice Call Quality

Cellular phone customers agree that their wireless service is not as good as it should be, but are willing to pay more for better service, according to a survey from the recent 3GSM conference in Cannes, France.

Of 180 people interviewed by Psytechnics almost half of mobile phone customers (43%) feel that the voice quality of calls they receive or make through their mobile phone service providers could be improved. The poll also showed that 72% of customers said they would accept higher fees to ensure superior call quality.

Respondents are also skeptical whether the advent of 3G will resolve voice quality issues, with two-thirds saying it will not solve these issues, and only one-third predicting 3G will reduce voice quality problems. J.D. Power and Associates reported that voice distortion is one of the most important customer complaints that impacts overall carrier performance.

"It's common knowledge that there is a high churn rate among wireless customers and that poor voice quality is a point of contention with cell phone users," said John Winchester, CEO at Psytechnics.

"Our company is working with the wireless industry to improve voice quality, by providing wireless carriers with the right tools to pinpoint and fix possible inadequacies quickly, protecting revenues and maintaining customer satisfaction."

Push-To-Talk/PoC Market Headed For Slow, Steady Growth

The number of Push-To-Talk (PTT) and Push-To-Talk Over Cellular (PoC) subscribers will grow at a slow, but steady pace in the next five years, reports In-Stat. The US subscriber base will grow from 16.8 million at the end of 2004 to 33.6 million at the end of 2009, according to the high-tech market research firm. Slightly faster growth is anticipated in the worldwide market than in the US.

The majority of growth will come from continued expansion in the business market and moderate uptake in the consumer market, especially youth. The PTT/PoC market is an emerging one, however, and many barriers to growth remain, particularly in the areas of technology and interoperability.

As a result, In-Stat expects the market will expand slowly over the next five years. The PTT market pioneer, Nextel (soon merging with Sprint), will retain its lock on the market during this time, due to its superior service, experience, intense focus and support of PTT.

A recent report by In-Stat also found the following:

  • As a result of the increase in availability from cellular providers, PTT/PoC is becoming more of a mainstream Value-Added-Service (VAS), such as Caller ID and voice mail, a commodity that cellular providers can offer to their customers for an additional fee, over and above the price of traditional voice communication.
  • Average Revenue Per User (ARPU) for PTT/PoC is expected to decline throughout the next five years, as more carriers price PTT/PoC in line with other VASs and/or adopt pay-per-use price plans.
  • One-third of respondents to a proprietary In-Stat survey would consider switching carriers in order to be able to use PTT/PoC.
  • Of users willing to pay something extra, the average premium price point is $4.80/month for service, but about half feel PTT should be included in the standard subscription, according to results from In-Stat's survey.
Equipment Leasing Can Support Your Growth

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Call now at 1.800.777.9478 to schedule a no obligation conference call assessment or a personal visit by a WFS Associate.

Notes: Benefit is based on approved credit transactions. WFS reserves the right to approve all transactions. Deferred payment benefit applicable to transactions of $10,000 or more. Offer expires on December 31, 2005.

Rivals Can No Longer use SBC's Phone Lines
Michigan consumers are expected to have fewer telephone companies to choose from in light of a Tuesday ruling by state regulators.

The Michigan Public Service Commission said the state must abide by a federally imposed deadline to stop forcing SBC Communications Inc. and other big phone companies to give their competitors discounted access to the larger companies' phone lines. About three-quarters of the lines served by competitors of SBC in Michigan are leased under those discounts.

Tuesday's decision means Talk America, TDS Metrocom and other phone companies in Michigan have to use their own equipment, not SBC's, to serve all residential customers by March 2006. Some advocates of competition had asserted that the state's telecommunications law would be allowed to supersede the Federal Communications Commission's deadline.

In light of the ruling, rival phone companies will either be rushing to install new equipment before next spring or discontinuing service. Deborah Gajda, a Livonia resident whose family left SBC about three years ago, hopes her service can continue without changes.

The Total Solutions Group Value
  • Contract Negotiation
  • Audit and Recovery
  • Billing Acuracy
  • Telecom Management
  • Network Design
  • Network Management
  • Future Technology Positioning
  • Telephony Maintenance & Installation 
The TSG Team

Jimmy E. Greene  CEO
Amy Suchy  COO
Steve Harris  VP
Tammy Kruse Marketing
Amanda Archangeli: Audit Specialist

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