Lack of Business Communications Services Threatens PCS and Cellular Carriers

DALLAS, Texas, -- The inability to use a standard PCS or Cellular telephone as an office telephone represents the biggest threat to Cellular and new PCS (Personal Communication Services) carriers. It also represents the greatest hurdle to achieving the one phone and one phone number capability envisioned for new Cellular and PCS systems.

Results of research conducted by Alexander Resources over the past two years has determined that 72% of all business Cellular subscribers would want a single wireless phone that can be used as an office phone indoors and as a mobile phone outdoors. These new wireless phones would also meet their demand for one phone and one phone number. Yet this need has been largely ignored by the great majority of Cellular and PCS carriers up until now.

Nonetheless, Alexander predicts that these customer needs will be met by carriers offering new Wireless Business Communications Systems (WBCS). These new systems use radio signals to link a wireless telephone (Cellular or PCS) to a business’ existing PBX, Centrex or Key telephone system. The WBCS allows these new wireless telephones to operate as a standard business telephone indoors, without airtime charges, and as a standard Cellular or PCS phone outdoors.

Jerry Kaufman, President of Alexander Resources, stated: "With 9.7 million business users accounting for 34% of all Cellular subscribers and 63% of all Cellular revenue, not meeting their needs for WBCS can have serious long term consequences for any Cellular or PCS carrier."

In addition, Alexander’s research has also found that current Cellular and PCS phones cannot be used as office telephones for the following reasons:

• Indoor building radio propagation problems
• Airtime charges
• Low talk and standby time
• Lack of dedicated business feature and line buttons
• No access to a business’ existing networks
• No access to a business’ existing PBX, Centrex or Key telephone system
• Small size and weight

WBCS will overcome these problems by offering business subscribers a new, single wireless phone (with one phone number) specifically designed to be used as an office phone indoors and as a mobile phone outdoors. Companies such as AT&T, Panasonic, Southwestern Bell, Vanguard Cellular and Comcast Cellular have already introduced WBCS in the U.S.

Looking forward, Alexander believes that offering WBCS will be critical to every Cellular and PCS carrier for the following reasons:

• It addresses current and prospective business Cellular/PCS subscriber need for seamless wireless communications inside and outside the office.
• It is a prerequisite to future one phone number and one phone capabilities in any network
• Lack of WBCS functionality will force carriers to compete primarily on price for business customers
• Offering WBCS functionality will increase a carrier’s revenue and subscribers
• WBCS will help carriers retain existing business subscribers
• WBCS functionality will help carriers attract subscribers from competitors
• WBCS can serve to differentiate carriers and establish a competitive advantage for them
• Without WBCS, PCS and Cellular carriers will be vulnerable to losing key business subscribers to competitors offering it.

Alexander Resources, based in Dallas, Texas, conducts advanced market research in wireless communications worldwide. Founded in 1989, the company publishes market research reports, produces conferences and seminars and provides custom consulting services.


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