For the introduction of its initial wireless data offering, Leap Wireless International Inc. went back to its roots. The flat-rate, all-you-can-talk carrier will launch the first channel of its Telephone Entertainment Network, in Chattanooga, Tenn., where the carrier debuted its Cricket wireless voice service in March 1999.
The service, dubbed Slice of Chattanooga, is designed to deliver short voice clips directly to a customer’s phone after a number is dialed, but before the call is connected. Customers will have some control over what they hear through a few interest questions in the set-up process and any habits they form during the use of the service. In addition to the requested information, Leap will also intersperse advertisements and promotions.
After hearing the brief voice clip, usually about 10 seconds long, customers can access additional information by voice, text or an interactive entertainment menu by pressing a button on their phone keypad.
“We think Slice is a perfect way for busy people to stay up-to-date when they don’t have time to read the newspaper or listen to a newscast,” said Doug Hutcheson, senior vice president of wireless data development for Leap.
Hutcheson said the frequency of information and type of information presented would be driven by habits and algorithm models provided from Spotcast Communications, a personalized mobile media company Leap acquired earlier this year. The technology platform, which Leap said it modified for this application, is smart enough to know when a call is dropped and to not again replay a clip when the subscriber tries to reconnect.
“I like it because it is geared toward the consumer,” said John Byrne, wireless analyst with Paul Kagan. “It’s different from what is out there and being offered by other wireless operators. One of the problems with current offerings is the multiple menus customers have to navigate to get information. This sidesteps that with voice-driven content.”
The initial rollout of the Slice service in Chattanooga also includes an agreement with the Chattanooga Times Free Press to provide news content for users.
“We are not developing the content; we are attributing the content,” Hutcheson explained.
The voice-centric nature of the service is also designed so current Leap subscribers do not have to purchase a data-enabled phone, though the company said it would encourage users to select such phones so they can take advantage of additional data features of the service.
“We will not roll out services unless we can give our customers what they want. It’s too painful for all involved,” Hutcheson said.
For Leap subscribers interested in the service, the carrier made of point of continuing with its simple price plans. Slice service will run an additional $3 per month on top of their current monthly bill, and will fit onto the same one-page bill they currently receive. Hutcheson said Leap was looking at introducing a premium service in the future for more data-intensive users, but final plans were still being worked out.
While the additional $3 per month is not expected to have a large impact on Leap’s average revenue per user, which are lower than traditional wireless operators, the advertising potential of the service is sure to help Leap’s bottom line.
“Advertisers will definitely like the captive nature of the audience using the service,” Byrne said. “And for Leap it will provide an additional path of revenue.”
Byrne noted the service should find a strong audience among Leap’s customer base since most subscribe to additional services the carrier currently offers for its voice service, including call-waiting and three-way calling.
Leap said it expects to expand the Slice service to additional markets, but was not specific on a timeframe for that expansion.
