Wireless Regs Might Mean Early Christmas

A new Federal Communications Commission regulation allowing wireless customers to take their phone numbers with them if they switch carriers goes into effect Nov. 24.r

Also, carriers will have to allow wireline to wireless portability when a wireless company’s coverage area overlaps the geographic location of a the wireline number.r

Both affect cities around the country, although “local number portability” won’t take effect in most places until May 24, 2004.r

Wireless companies are now trying to lock wireless customers into long-term contracts and extend existing contacts with honey-coated deals and incentives.r

The reason: Up to 9 million wireless customers nationally — of about 141 million as of 2002, according to a study by the The Progress and Freedom Foundation — could change carriers within days of Nov. 24 in pursuit of better deals, according to the Cellular Telecommunications and Internet Association.r

“We’re very excited about the opportunity for customers to roll over to Cingular,” said Annette Teter, a spokeswoman for Cingular.r

Others are less enthusiastic.r

“We’re doing the same things we’ve (always) been doing,” said Andy Moreau, an Alltel Corp. spokesman.r

Wireless carriers have moved quietly with numerous incentives, such as free phones, cash credits and extra minutes and will be able to switch carriers in less than three hours.r

AT&T Wireless has offered some customers $50 credits for agreeing to a year’s contract extension, airline miles, discounts for new equipment and hundreds more monthly minutes.r

Sprint PCS has offered 50 percent more free minutes. Alltel, the industry’s No. 7 carrier with 7.9 million customers, has offered new phone equipment discounts for contract extensions.r

Cingular has offered existing customers equipment upgrades, new rate plans, high-speed data connections, expanded coverage and call forwarding to wirelines, Teter said. But much of that would be offered anyway.r

Nextel plans to rely on its business customer niche and has offered incentives on a customer-by-customer basis, said John Duty, a Nextel spokesman, noting about 80 percent of Fortune 500 companies have Nextel contracts. Arkansas is served by affiliated Nextel Partners.r

Alltel officials were sketchy on new wireless customer deals, although there is a new phone deal.r

“We have to see how it plays out,” Moreau said. “We’ll certainly monitor our competitors and they’ll monitor what we do.”r

The wireless industry’s annual churn rate is about 33 percent, according to a study by Yankee Group of Boston. Ten million to 15 million subscribers might change carriers soon after Nov. 24. r

Moreau predicted a “hyper-competitive” wireless market and difficulty in gauging impact because portability will arrive at the deal-friendly holidays.r

“The holiday season is when … there are always sweet deals and wonderful promotions,” Teter said. “The closer it gets to Christmas, carriers will be (more) aggressive.”r

AT&T, the country’s third-largest wireless carrier at 21.5 million customers, had “gaming” and “scenario planning” in case of recruitment campaigns by rivals, said spokesman Mark Siegel.r

Wireless portability implementation could cost the industry $12.4 billion over five years, according to a study by The Progress and Freedom Foundation of Washington, D.C. and amount to $1.60 per customer per month initially. That could drop to 41-44 cents, depending on the carrier.r

The study estimated costs between 2001 and 2004 of $141.7 million for Sprint PCS; up to $227 million for Cingular by year-end 2003; $149.9 million for AT&T Wireless by year-end 2003; $50 million for Verizon by June 30, 2003; and at least $100 million for Nextel. r

Wireless customers also will face extra fees and hefty termination fees if they break contracts. The CTIA estimates carriers spend $300-$350 to get one new customer.r

“It will be a great time to be a wireless customer,” Teter said. r