While the domestic wireless industry struggles to determine the demand for wireless local loop
services in the United States, Frontier Cellular in May will mark the one-year anniversary of the commercial launch of
its WLL system in its New York markets.
WLL services are expected to play a big role in certain international
markets where customer demand for basic telephony is not being met, but its role in the domestic market is not as sure.
AT&T Wireless Services Inc. is addressing the domestic WLL market with its Project Angel initiative, and other
wireless carriers are said to be working on WLL systems as well.
Only a handful of carriers have launched WLL
services commercially in the United States. The incumbent local exchange carriers provide extremely difficult
competition for wireless carriers hoping to tap into the wireline market, because they already offer extensive networks,
high data rates, high voice quality and low pricing models.
A subsidiary of ILECs Bell Atlantic Corp. and Frontier
Corp., Frontier Cellular had to overcome some early concerns about competing with its parents before rolling out what
it says has been a successful WLL offering. Joe Cufari, director of advanced technology at Frontier, said the WLL
service has been especially well received among construction companies, which regularly move from site to
site.
“When you move, the phone moves with you,” said Cufari. “This technology enables
businesses, such as construction companies, to avoid the hassle of constantly having to activate a new phone line when
they move to a new location.”
The company’s goal for 1998 was for 5 percent of its digital sales to be WLL
sales, and it came close with 4.7 percent coming from its WLL product. While its goal for 1999 is to again achieve 5
percent WLL sales, the company in January had 10 percent of its new digital sales coming from its WLL
offering.
The company also has reorganized its sales force to put an increased emphasis on its WLL product, and it
is planning to bolster its retail presence as the product becomes more mainstream, said Cufari.
Cufari said he
believes Frontier is the only company in the United States offering unlimited calling packages that are competitive to
landline rates. Frontier charges $35 per month for unlimited local calling in Rochester and $40 per month in its other
markets. The company also offers measured service plans that start at $20 per month, although customers
overwhelmingly select the unlimited calling plans, said Cufari.
The key to success, said Cufari, has been and will
continue to be offering extremely high voice quality and making it as simple for the customer as possible. That includes
calling the service wireless local access and dropping the reference to the “local loop,” which most
consumers don’t understand, said Cufari.
Another key is offering similar features to that of traditional landline
service, including caller ID and last-call return. Cufari said Frontier already offers some of those features and is
developing others.
Frontier is selling the WLL units, which plug into electrical outlets, at its cost of about $300.
Although customers feasibly could take their WLL phone with them wherever they go, Cufari said the company doesn’t
encourage it.
“We want people to use this as their home phone,” said Cufari, who noted customers are
limited to a single cell site. “You don’t take your home phone with you to your neighbor’s house, to your office or
to the grocery store.
“We don’t want to steal from our mobile business,” continued Cufari. “We
want to complement it.”
Frontier offers WLL service using both analog and Code Division Multiple Access
technologies.
