Arch Communications Group Inc. launched its two-way messaging service this week, positioning the new service as far away from the old paging paradigm as possible by using the brand Webster Internet Messaging.
“Fundamentally, at its core, it’s a wireless e-mail service offering,” said Ed Baker, Arch chairman and chief executive officer.
The first in an expected family of Webster-branded services, Webster 100 is being offered only on the T900 interactive messenger from Motorola Inc., featuring wireless extension of desktop e-mail and two-way messaging.
Arch’s Wireless Messaging Engine will manage the data, with a unified messaging mailbox and synchronization capabilities. The service supports virtually all e-mail account systems, but not POP3.
Unlike traditional alphanumeric or numeric paging service, which have local pricing plans, Webster services are offered only on a nationwide basis.
“We view this as an Internet messaging service, and we believe people have come to expect that on an anywhere, any time basis,” Baker said.
Also, Arch will charge for the service by the character, not by the message.
“We think the concept of billing on the basis of messages is too unfair to the customer and is tied too closely to the paging paradigm,” from which Arch is distancing itself.
Pricing plans range from 25,000 characters a month for $15 to unlimited characters a month for $30. This includes only e-mail extension to the device. Two-way messaging services will cost an additional $3 a month, regardless of plan.
Future Webster services will incorporate devices other than the T900, Baker said, such as the T935 (also known as the PageWriter 2000X) and various personal digital assistants. These devices will have their own operating system, which the T900 lacks. Without going into specifics, Baker said Webster 200 and 300 services will utilize these types of devices to deliver both general and custom applications via its two-way network. Arch then expects to approach specific vertical markets and offer custom applications targeted at them.
“We see a tremendous amount of revenue that goes beyond the horizontal applications and moves into vertical business applications,” Baker said.
But Arch also is expanding its pursuit of the consumer market. Last week, Arch targeted the 15- to 20-year-old market through an agreement with Bolt Inc., under which Arch will provide messaging and content services to Bolt members via a Bolt-branded device.
Bolt is an integrated communications platform for the young adult market. Its Web site provides proprietary interactive services and communication tools for more than 3 million registered members worldwide. The site offers free e-mail, voice mail, message boards, people search, Bolt Notes, instant messaging and wireless services.
The deal with Arch will allow members to receive daily horoscopes, music reviews and e-mail notification. With the launch of Arch’s two-way service, users also will be able to send and receive Bolt Notes e-mail.
The company previously formed a deal with America Online Inc. and expects more to follow.
“We will always pursue all consumer segments because we have the network coverage and the bandwidth to pull it off,” Baker said. Once Arch completes its merger with Paging Network Inc., it will have a wealth of narrowband personal communications services bandwidth, which it needs to fill to make the investment worthwhile, he explained. As such, Arch is not looking at niche service, but going after everybody and anybody to load the network.
Arch will continue to pursue business accounts through its direct sales channels and brand, he said, but will rely on partnerships with established consumer brands, such as AOL and Bolt, with their own distribution channels, when targeting the consumer segment.
“There isn’t any consumer segment we don’t want to reach,” he said, noting “our No. 1 priority will be the business segment.”
He said the Webster 100 program already has signed three large commercial business accounts totalling 10,000 units.
In other Arch news, the PageNet merger remains stalled at the Securities and Exchange Commission. Neither company can officially solicit support from their shareholders or bondholders until the SEC releases the required paperwork.
“The biggest holdup is the complexity of the transaction itself, coupled with the fact that PageNet has not been before the SEC for some time,” Baker said.
PageNet has had no need to solicit the SEC in the last several years, and therefore has no exposure to the regulatory body. As such, the it has taken the SEC longer to familiarize itself with the company.
“We had anticipated closing in the late summer or third quarter, but that’s now moved to the fourth quarter,” Baker said. He remains confident the merger will be complete this year.
Metrocall Inc. confirmed rumors it had compiled a competing bid for PageNet Friday when it announced it had terminated discussions with PageNet bondholders for such a proposal. Metrocall said it had considered submitting a potential alternative transaction to PageNet’s merger with Arch, but PageNet bondholders refused to keep the discussions confidential.
Metrocall said these bondholders approached the company requesting an alternative proposal. A source close to the situation said it is likely that PageNet bondholders wanted to use discussions with Metrocall as a negotiating point to get a greater share of equity out of the Arch merger before the final proposal is submitted to a vote.
