One of the knocks against conventional wireless service plans is that customers are charged the same amount for airtime whether they are calling across the street or across their service area.
Two wireless companies are trying to alleviate the local pricing discrepancies by offering unlimited local wireless minutes for a fixed, prepaid rate. U.S. Cellular Corp., with its recently introduced MetroZone service, and Leap Wireless International Inc., with its Cricket Communications service plans, offer wireless services that do not require service contracts or credit checks. But these service plans only are offered in a few markets in Tennessee.
U.S. Cellular, which Aug. 1 launched its MetroZone service to customers in Knoxville, Tenn., claims its service is a convenient and affordable alternative to typical wireline service, allowing customers to use their wireless phones as a “super cordless” phone.
For a flat rate of $35 per month, MetroZone customers have unlimited roaming in the Knoxville market using U.S. Cellular’s CDMA network. Included in the monthly price is caller ID. Call waiting, three-way calling and message center service is available for an additional $8 per month. For those in need of long-distance service, MetroZone allows prepaid services to be purchased for an additional 15 cents per minute.
“This service is as convenient and affordable as your cordless home phone, with the added benefit of mobility,” said David Friedman, vice president of marketing for U.S. Cellular. “MetroZone is ideal for high school and university students or any on-the-go customer who wants to make unlimited local calls for the same prepaid price each month.”
Leap’s Cricket service is similar in that it offers prepaid unlimited wireless local calling through a CDMA network. Cricket’s service, which launched in Chattanooga, Tenn., in 1998, runs $30 per month, with caller ID, call waiting and three-way calling available for an additional $8 per month. Leap also offers prepaid long-distance service for about 15 cents per minute.
In addition to the Chattanooga market, Cricket service is available in Nashville, Tenn., with plans to launch service in eight other markets before the end of this year, and 25 more markets next year.
Dan Pegg, vice president of public affairs for Leap, noted that customer acceptance of Cricket service was so great initially, the company’s network quickly ran into capacity problems before Leap could completely fill out the network infrastructure. Now customers are averaging about 1,000 minutes of service per month, which translates into a service price of just more than 3 cents per minute.
Both companies noted they are looking into offering additional services to customers, including wireless Internet access and data communications over their networks.
