Positioning itself for the impending rush on broadband personal communications services licenses, The PCS Group, a Minneapolis-based consulting firm, has formed to offer one-stop assistance to entrepreneurs in this emerging wireless industry segment.
The PCS Group President Brian Friedman said, “To succeed in PCS will require significant planning, forethought and market distinction. It won’t be enough to merely provide another cellular service.”
To help achieve this goal, The PCS Group said it plans to offer a variety of services to clients at each step of the bidding-building-branding journey the novice companies must make, noting it intends to provide “these services through key alliances with leading communications industry service providers and equipment manufacturers.”
“We therefore believe
that the designated entities, who will by and large be
of an entrepreneurial bent, are in the best position
to offer alternative services, delivery mechanisms
and innovative approaches to the market.”
PCS hopefuls would pay The PCS Group a one-time service fee, then select and directly contract with a service provider from a company-approved list.
So-called “designated entities” who hold C-block licenses are especially targeted. These include small businesses, woman- and minority-owned businesses and rural telcos.
“The C-block participant can not expect to enter a BTA (basic trading area) already served by three or four cellular-like services and compete head-to-head on the basis of similar service or price. We therefore believe that the designated entities, who will by and large be of an entrepreneurial bent, are in the best position to offer alternative services, delivery mechanisms and innovative approaches to the market,” Friedman said.
As a first step, the company said it will offer pre-auction assistance in PCS market analysis, engineering studies and revenue/cost projections as well as representation and assistance at the auction itself.
Broadband PCS auctions are set to begin December 5.
“We believe that taking a `cookie cutter’ approach to entry to PCS in every market will be a dangerous tactic for new participants. Especially with designated entities, the owner will have to be creative in the delivery of services to the marketplace,” Friedman commented.
The company also sees pitfalls in tardy equipment delivery when demand exceeds supply and construction or operating delays resulting from contracting with unproven construction and management firms.
The PCS Group claims to offer its clients financing, volume discounts and favorable equipment delivery terms through exclusive agreements with a major PCS equipment supplier. However, the company will not identify the supplier.
Once the licensee is operating, its growth may still be stunted by a lack of nationwide service connections or a strong marketing presence.
The PCS Group said it will offer operators across the country an opportunity to join together in a nationwide PCS network with the brand name PCS AMERICA.
“PCS AMERICA will offer smaller PCS operators the nationwide marketing clout and service capability they’ll need to compete against established communications companies in the PCS field,” the company said.
In return, the company said it will charge a yearly fee based on the population base in a licensee’s market.
Friedman claimed that The PCS Group offers a distinct advantage over other businesses touting their PCS abilities and offering to help wireless tyros in that “we don’t own any portion of the participant’s license nor will we own any competing licenses.”
“We believe that management companies that own competing PCS licenses- whether in similar or adjacent markets-may be providing those management services to benefit their own interests over the interests of the license holder,” Friedman said.
