There’s a new carrier in town. That is, if your town is located in northwest Georgia or Tennessee. Based in Dalton, Georgia, SmartPCS is a new no-contract, unlimited calling provider operating in a similar vain to Leap Wireless International Inc. and MetroPCS Communications Inc.
A CDMA2000 1x-based provider, SmartPCS recently launched an EV-DO network with the help of ZTE USA Inc.covering northwest portions of the Peach State and southeast Tennessee near Chattanooga. The Chinese infrastructure provider is supplying network equipment for SmartPCS and also will lend its C88 handset to the carrier.
Unlike the increased focus by many operators on revenue-generating data services, SmartPCS is betting its initial plans on voice.
“We’re in the voice business,” said Anthony Ortolani, president and CEO of SmartPCS. “The data uptake is there, but our people are very sensitive to price. What our subscriber base pays for coming out the door is key. We’re not willing to subsidize the way Verizon Wireless or AT&T can.”
Ortolani said the carrier’s business model is similar to that of Leap and MetroPCS, as well as a handful of other regional start ups entering the wireless space.
“It’s not a prepaid card-type deal,” he said. “It’s the all-you-can-eat model.”
The imitation also spills over into SmartPCS’ coverage plans, which include reliance on larger operators for roaming services. SmartPCS customers can currently roam on Leap’s entire network, and Ortolani said SmartPCS is in the process of finalizing a roaming relationship with a nationwide operator.
Also in the works are aggressive expansion plans for SmartPCS itself, Ortolani said. The carrier covers some ground in western Kentucky as well.
“We plan on expanding into several new markets,” he said. “We’ll go as far as our equity partners will let us.”
Data not ignored
SmartPCS’ focus on voice does not mean the carrier is turning a blind eye towards data.
“Obviously we want to make as much money from data as we can,” Ortolani affirmed. “We know that’s the future.”
The SmartPCS unlimited monthly voice plans range from $25 to $55 per month and family plans range from $60 to $100 per month. Unlimited Web is included in most of the plans, Ortolani said, and the carrier also offers a wireless modem.
“We have an air card that we sell, but again that’s not our primary business,” he said. “It’s $40 a month for the air card data plan.”
Ortolani said Verizon Wireless is its main competitor in the region and if SmartPCS expects to steal customers from the mobile giant, Ortolani is aware that it will have to work. To help facilitate the wooing of current mobile customers, SmartPCS also offers a “flashing” option that allows customers of other CDMA-based operators to bring their current handsets over to SmartPCS’ network. MetroPCS launched a similar offering last year.
“The surprising amount of flashing we’ve received has been fabulous,” Ortolani said. “It’s a direct result of the poor economic times. We benefit from the poor economy. We had anticipated 25% [of our customers to come from ‘flashing”] and it got to 40%.”
Staying local
SmartPCS has its hands full with marketing and becoming part of the local community, Ortolani said. It will continue to advertise through the radio, outdoor events and community involvement, while pushing and perfecting its claim to be a confident voice provider, Ortolani noted.
“Our customers are not after the high-end phones,” he said. “We sell them, but our bread and butter is a clamshell or bar phone that can make local calls, long distance calls or surf the net a little bit.”
