2009 Wireless Forecast: Carriers: Task lists: Better networks, better devices and better customer service

With the economy in a recession, many Americans are trying to scale back spending. Wireless providers, however, may experience just the opposite reaction: Each carrier has a “hop to it” mantra, whether it is to upgrade the network, recruit more customers (or actively try to keep them), enhance device options or catch up to the competition.
AT&T’s ‘nice’ network problem
AT&T Mobility is under pressure to upgrade its network. While the carrier has chosen to upgrade to the LTE protocol, it has stressed that it does not plan to deploy the technology for a few years. Instead, AT&T Mobility plans to upgrade its HSPA network to HSPA+, which the carrier claims can produce speeds equivalent to LTE and WiMAX technologies.
AT&T Mobility is testing faster speeds on its HSPA network in Chicago. However, the carrier has not laid out a timetable for any network upgrades. With Verizon Wireless planning to deploy LTE later this year, and AT&T only testing higher speeds in one city, it might be time to ramp up its timetable.
Keith Mallinson, president of WiseHarbor, noted that AT&T Mobility must address its network and the “nice” problem surrounding it.
“It’s a nice problem because it means the networks are really being used, but they don’t want to find that everything is disrupted,” Mallinson said. “They’ve got real growth in data demand and they have to deal with it.”
AT&T Mobility has different ideas about what is crucial in 2009. Company spokesman Mark Siegel said the carrier will enable more non-handset devices on its wireless network over the next year.
At Verizon, it’s the device
Verizon Wireless, which recently saw slower growth in net subscriber adds during the fourth quarter, may have to put the network on the backburner for awhile. Pete Dailey, program manager at Stratecast, said it’s time for Verizon Wireless to reposition itself. Dailey said the carrier’s decision to say “it’s the network” and take the “if we build it, they will come” approach has become problematic. Decent network quality is a given for customers today, Dailey said. Since the launch of Apple Inc.’s iPhone exclusively at AT&T Mobility, Verizon Wireless can’t simply say “it’s the network” and have that resonate with subscribers; for customers, “it’s the device.” On that note, Dailey said Verizon Wireless needs to bring in some new and compelling handsets.
“Verizon Wireless has always had a comparatively less desirable device portfolio,” Daily said. “It has never been able to accept the role that devices play in customers’ choice. By sticking to that position, they’ve dug a deep hole for themselves now.”
Verizon did not return calls for comment on its priorities for 2009.
Tough sledding at Sprint Nextel
Sprint Nextel Corp. may have a tougher year ahead than anyone. Bill Ho, analyst at Current Analysis, said Sprint Nextel must show positive subscriber growth after losing a huge base for many quarters.
“[It also must] break out of CDMA clutter with an innovative portfolio (not just one device) of devices that further the data value proposition,” Ho said.
Further, Ho said it’s important for Sprint Nextel to rebuild the brand, which is exactly what the carrier plans to do. James Fisher, spokesman for Sprint Nextel, said its main goals this year are to improve the customer experience, enhance profitability and strengthen the brand.
T-Mo: Floor it
T-Mobile USA Inc. must also put focus on its network, not only to upgrade to faster speeds, but to keep up with competitors. Ho said the carrier must continue to build its 3G network to increase data revenues. T-Mobile declined to comment on this story.
“They’ve still got a ways to go in rolling out their coverage,” Mallinson said. “The G1 has a high demand rate, so they have potentially something there that could put a lot of demand on their network. They have to ramp up the deployment of the AWS-3 spectrum.”
Keeping pace
MetroPCS Communications Inc. and Leap Wireless International Inc. also must play catch up, Ho said, noting that they “need to deploy into the new metropolitan markets as planned and quickly take market share.” Further, Ho said depending on what type of traction Boost Mobile’s new $50 all-you-can-eat plan makes, the two carriers may have to seriously consider merging. A previous attempt to combine their businesses failed.
Clearwire Corp., which is in the very early stages of rolling out its mobile WiMAX service, has a different set of challenges. The company knows what it must do this year: keep the launch on target, keep prices affordable and dampen any Xohm/Clear confusion sweeping its customers. The carrier has everything in place to spread “Clear” services across the nation, but the current technologies deployed in its Baltimore and Portland, Ore., markets are not interoperable.
Clearwire also needs to take advantage of its partners to help get the word out, Ho said.
“[Clearwire needs to] roll out the larger metropolitan markets and show the public what’s possible with a fat mobile broadband pipe in applications and devices to capture imagination and build the unknown brand,” Ho said. “Also, it must ensure that MVNO partners (Sprint Nextel and cable companies) have all the resources to attain success.”