Editor’s Note: RCR Wireless News goes all in for “Throwback Thursdays,” tapping into our archives to resuscitate the top headlines from the past. Fire up the time machine, put on the sepia-tinted shades, set the date for #TBT and enjoy the memories!
Pulling out the stops on local calling
Many people have claimed the success of the Internet really took off once service providers implemented one-rate plans for unlimited usage. The plans allowed computer users to surf all they wanted without having to worry about a surprise bill at the end of the month. A few wireless operators have taken the same approach to wireless service, introducing service plans allowing customers to call all they want for one price. Sure, the calling plans only include local calls in the rate plans, but for many people, local calls make up a majority of their wireless airtime. The industry standard for these types of services has been Leap Wireless International Inc., which has launched its Cricket service in 22 markets across the country. But a few traditional wireless operators have pushed forward with their offerings, in spite of concern about how they might affect overall operations. The latest to launch a local unlimited wireless calling plan is Alltel Corp., which launched its “Boomerang Powered by Alltel” service in 10 of its wireless markets: Albuquerque, N.M.; Charlotte, Greensboro and Hickory, N.C.; Lincoln and Omaha, Neb.; Phoenix and Tucson, Ariz.; the Tri-Cities of Kentucky, Virginia and Tennessee; and its home town of Little Rock, Ark. … Read more
RIP, paging industry
It’s quiet out there in the paging and messaging industry. Perhaps too quiet. WebLink Wireless Inc., Arch Wireless Inc. and Metrocall Inc. are the three largest independent paging and messaging companies in the country, and it seems their fates are intricately entwined. They are all facing subscriber losses in the hundreds of thousands and are weighted down by massive debt and interest payments. And since no outside investor or company has shown any interest in financing or acquiring one of these players, it seems that the three paging are on their own. Moreover, for the past several months all three have been quietly laboring away, working to maintain their own financial health, while the nationwide paging and messaging industry seems to be slowly sliding into bankruptcy. … Read more
Lucent times two
Like two pods in a peanut shell, Lucent Technologies Inc. plans to realign its business operations into two main divisions-wireless and wireline. It is part of the Murray Hill, N.J.-based company’s efforts to evolve a business model to rescue it from its series of financial and organizational flaws that have spawned layoffs, spinoffs, financial losses, frenzied speculations of takeovers and profit warnings. The company’s chief executive, Henry Schacht, unveiled the decision, which is expected to go into effect during the next “several weeks” through Internet e-mail circulated to the staff. The wireless operating unit will be called Mobility Solutions group, which will cater to wireless service providers, such as AT&T Wireless Group Inc., Japan’s NTT DoCoMo Inc. and Cingular Wireless. The wireline operating unit, which will be known as the Integrated Solutions group, will serve long-distance carriers, Baby Bells and backbone companies. … Read more
Dobson hits a million subs, a billion in debt
OKLAHOMA CITY-Dobson Communications Corp. added nearly 90,000 postpaid customers during the second quarter, bringing the wireless operator’s customer base to just more than 1 million wireless subscribers. The carrier’s results include its 50-percent ownership in American Cellular Corp. through its joint venture with AT&T Wireless Services Inc. Customer churn for the quarter increased slightly from 1.7 percent during the second quarter of 2000 to 1.8 percent this year, but was down from the 1.9 percent reported during the first quarter of 2001. Dobson also reported 40,500 analog customers migrated to digital calling plans during the second quarter, bringing the digital portion of its customer base to 614,800 subscribers, or 61 percent of its customer base. Dobson also filed a shelf registration statement with the Securities and Exchange Commission covering up to $1 billion of debt securities, preferred stock, common stock, debt warrants, equity warrants, units and trust preferred securities. … Read more
AT&T Wireless goes solo
While the event was not celebrated with fireworks across the country, AT&T Wireless finally was able to celebrate its independence last week as it began its first trading day as an independent company. And, while most people were not expecting AT&T Wireless’ stock to go through the roof, there was some hope a strong showing would signal a possible recovery for the wireless industry. But, instead of fireworks, Wall Street greeted the news coolly, knocking AT&T Wireless’ stock down roughly 3 percent on its first day of freedom. Leading up to last Monday’s first trading day, AT&T Wireless’ tracking stock hovered between $16.50 and $17 per share, just ahead of its 52-week low of $15.29 set in mid-June. The stock was up slightly in early Monday morning trading to near $17.25 per share before succumbing to a general market downtrend and closing the day just above $16.50 per share. Even with its eventual downturn for the day, more than 39 million shares of AT&T Wireless traded hands last Monday, well above the stock’s average of around 6 million shares. … Read more
European carriers accused of price-fixing
BRUSSELS, Belgium-The European Commission made surprise raids on nine mobile operators in the United Kingdom and Germany last week to investigate alleged price fixing, according to international press reports. The commission was reportedly looking for evidence of collective fixing of consumer retail prices and serious competition concerns. Officials from the EC and Office of Fair Trading arrived at the headquarters of One 2 One, Orange, BT Cellnet and Vodafone in the United Kingdom and sifted through documents for the investigation. European operators have been criticized for the high and inconsistent roaming charges they assess for subscribers roaming to other European and international countries. Mario Monti, the European Union’s competition commissioner, told the European parliament in April that there was an absence of competition with high and rigid prices. … Read more
Big expectations for the Chinese mobile market
BOSTON-The Yankee Group said subscribers in the Asia-Pacific region will hit 575 million by 2005, surpassing Europe as the world’s leading mobile communications market. Starting from a low penetration level of 6.93 percent in 2000, the region will expand at a compounded annual growth rate of 20 percent during the next five years, increasing its wireless penetration to 15.6 percent, the firm said. A report, titled “Asia-Pacific Wireless Market Overview 2000-2005,” provides forecasts of mobile-phone subscribers by technology on a country-by-country basis for 12 major markets in the Asia-Pacific region. … Read more
Check out the RCR Wireless News Archives for more stories from the past.
