MYRTLE BEACH, S.C.-Despite the outlook by many in the industry that paging is a market in decline, Southeastern Communications Association members are excited abut it. The group, which held its annual meeting here last week, primarily represents smaller, regional paging operators looking for new ways to play an ever-changing game.
Here, all eyes are on the horizon, which to attendees is as bright as the ocean next to which these meetings took place. The buzz, like at any other recent show, revolved around two-way and the Internet.
“No doubt, this is our future,” said SCA President John Steinberger.
Motorola Inc.’s Larry Snowden, U.S. director of indirect distribution for the company’s Personal Communications Sector, drove this point home as the lead-off presenter. He pointed out the usage similarities of both Internet and paging demographics. Users between ages 18 and 24 represent the majority of users for the future in both industries, he said, so merging their application strengths provides great opportunity for all. On the consumer end, wireless chat sessions reign. For business users, it’s remote access to e-mail.
According to Cynthia Hswe of The Strategis Group, two-way paging won’t represent a significant revenue source until at least 2002, but will become a $4 billion contributor by 2004. The driver is wireless e-mail, with 6 million users expected by 2004.
She also pointed out the advantages of paging over voice operators, which also are entering the two-way and Internet games. Voice players need third-generation networks implemented to truly compete in this field, and until that happens, established paging carriers have a window of opportunity to grab market share.
Helping that effort are other industry organizations such as the Personal Communications Industry Association, which recently underwent an overhaul to place greater focus on Internet-related issues. PCIA is working to drive the awareness of Internet and paging convergence, said Eddie Gleason, with PCIA’s regulatory affairs.
“PCIA is changing,” he said. “What PCIA is trying to do is attract other players in the industry … such as Microsoft [Corp.] and Sun [Microsystems Inc.] … the convergence players in the market.”
Also, PCIA’s Paging and Messaging Association has undertaken several technical and promotional efforts to help this process along. In particular, the group is looking into Wireless Application Protocol technology and where it fits into paging.
In addition, PCIA has hired the same ad firm that created the “Got Milk” campaign to create a similar awareness effort for paging services.
To play in this game, Darryl Sterling, senior analyst at research firm Main Spring, said operators should concentrate on what they do best-operating wireless networks. They shouldn’t worry about creating or running wireless portals, etc., because that is not their core competency.
“As a network provider, you should concentrate on building the best network you can and let others handle the portal,” he said.
Sterling said the newer, smaller and more powerful pagers being introduced today are basically mini-computers adding more users to the Internet. “That’s a very, very important dynamic,” he said.
