Wireless World: Carriers losing focus?

UPI ^ | January 6, 2005 | UPI

[2Jim_Brown]

Wireless carriers have lost their focus and are concentrating on the wrong priorities, like trying to recruit as many new subscribers as possible, rather than properly serving those customers they have already contracted with, experts tell United Press International's Wireless World. Mobile-phone-network operators are under competing pressures this year. New technologies are coming to market, like 3G cellular networks, next-generation network Internet Protocol multimedia subsystems -- so called NGN/IMS technologies. By Gene Koprowski

[2Jim_Brown]

Wireless carriers lose their focus by recruiting new subscribers instead of serving their old customers.

[Gadzuggs]

Can you say "early termination fee"? Why should they try to please you. They can pay a few customer service reps to not know anything for a lot less than improving service.

[ClearCase_guy]

The great baseball manager Connie Mack once said that ideally, a baseball team will start the season real hot. That gets fans coming out to the games. If the team fades, the fans will still likely come out, hoping for a comeback. If the team winds up in 4th place, no bonuses have to be paid to the players. This scenario maximizes profits for the Team Owner.

Giving the customer what the customer wants is not always the best business strategy.

[ken5050]

I don't want picture phones, sporets highlights, TV shows...text messaging...or anuy of the crap they are all pushing..I would like, however, to be able to conduct a call without it dropping off 25% of the time....

[mnehring]

Wireless carriers lose their focus by recruiting new subscribers instead of serving their old customers.

Coming from inside the industry, this isn't completely true. Part of the move to 3G advanced networks such as EVDO and CDMA 2000 is that these networks have less problems and can carry more traffic, helping attract new customers and fix many of the issues that causes customers to CHURN.

Some companies (including the one I work for) look at existing customers like new customers, ie, trying to win their business with every product and keep their service. Numbers like CHURN, ARPU and CTA are just as important (if not more important) than new customer acquisition.

As penetration rates become higher, look for carriers to focus more on these, especially the ARPU numbers (average revenue per unit)..

They want to not only keep customers, but have them purchase more add on's to their service.

[Frapster]

Eliminate contracts and reduce rates.

[mnehring]

I don't want picture phones, sporets highlights, TV shows...text messaging...or anuy of the crap they are all pushing..I would like, however, to be able to conduct a call without it dropping off 25% of the time....

The thing is that many of these new phones are using better technology or access newer networks and will reduce your dropped calls. If you've been holding out for a few years simply because you want a phone that just has better reception and not the 'bells and whistles', you should try one of the newer types of phones.. you may be surprised.

[beebuster2000]

not our carriers

[mnehring]

Eliminate contracts and reduce rates.

The contracts are because those phones they sell you for $29 cost the carrier over $200 wholesale. It is the only way to guarantee return.

If it were as simple as eliminating contracts and reducing rates, a carrier would have done it.. instead, you have to account for all the demand for better networks, costing millions, if not billions of dollars depending on the coverage.

If a company simply breaks even because they just have the cheapest rates or no contracts, they cannot invest in their networks. This will cause people to leave for better service, reducing profit even more, thus hurting the network more..

Creating the 'ideal' network that customers demand (no dropped calls, no static, etc) isn't like turning on a switch. God knows, carriers want customers to make as many calls as possible as it results in more revenue. If calls drop, that's less revenue.




Its like buying a car.. do you go for the cheapest or the best?

[randog]

I don't want picture phones, sporets highlights, TV shows...text messaging...or anuy of the crap they are all pushing..I would like, however, to be able to conduct a call without it dropping off 25% of the time....

Bingo. My wife convinced me to finally get a cell phone a year ago. All my friends, family, and co-workers know not to call me on it because it's never on.

[appeal2]

You are spot on. They keep coming up with a plethora of useless features, such a menopause timers, basil thermometers, etc and while all anyone post adolescent wants is to be able to make a call and not lose it once connected. My favorite, "Using Nextel means never having to say goodbye."

[appeal2]

You are spot on. They keep coming up with a plethora of useless features, such a menopause timers, basil thermometers, etc and while all anyone post adolescent wants is to be able to make a call and not lose it once connected. My favorite, "Using Nextel means never having to say goodbye."

[mnehring]

You are spot on. They keep coming up with a plethora of useless features...

And yet, these are the highest selling phones and have the biggest demand for upgrades to these from existing customers...

[WashingtonStateRepublican]

I would have to agree with this article. Coming from an insiders perspective, existing customers are under the impression that they're not valued as much as new customers, mainly because they have a harder time getting the same variety of deals on phones that brand new customers are able to get when signing up. I also see a large volume of existing customers who are frustrated with the customer service that they have received and feel that we don't care about them because they're already under contract. Personally, I could care less about all the extra features that are offered now days. I just want reliable service and an affordable plan.

[mnehring]

Sounds like our two companies look at CHURN much differently.

[WashingtonStateRepublican]

Actually, you and I work for the same company. Just two different perspectives.

[Frapster]

hey - I can dream can't I? ;-)

[Ford4000]

You are spot on. They keep coming up with a plethora of useless features...

And yet, these are the highest selling phones and have the biggest demand for upgrades to these from existing customers...

Consumers are getting little choice. Last time I shopped for a phone it was hard to find ones that didn't have this garbage.

Another beef I have is the structure of the plans. Why can't we have a plan that has reasonable incremental costs with a reasonable base rate? Either overbuy or risk outrageous minute charges(without warning). And many plans don't include use of those advanced features so the naive person (or their kids) can run up big charges(again, without warning).

The whole thing smells like a dishonest scheme to extract more money from users than they want to pay.

[Little_shoe]

Too True. I hate dealing with the wireless companies. I know I had a customer service rep said I could add more minutes to me without updating my contract, but when the paperwork came.. the box was checked 2 year contract.

Verizon is the most annoying because they have the best network and thus they are not willing to please the customor. The convers is you go with another company with a horrible network with decent customer service. Its a dang catch-22

However I need a new phone and a local number so ill probably have to update my contract. After that I think Ill get my phones off of Ebay and just let the provider program them for me.