Cricket cellular phone

What's here, hot and on the way in cellular phone technology. Alexander Graham Bell would be astonished.

LET's FACE IT. CELLULAR TECHnology has taken over. If you don't believe it, take a look around the next time you're dining at a nice restaurant, sitting at a stoplight, attending church services or lounging at the pool. Cellular phones have become a necessity for many of us, and an outright obsession for some. Our growing need for instant information has given birth to a whole new generation of cellular phones that perform far beyond the original ideal of a wireless telephone.

Today, a cellular phone can act as a pager, a calculator, a video game or a personal organizer. Users can send and receive text messages, access sports scores and purchase stocks via the Internet, send and receive e-mail and e-mail attachments-even fax those attachments to the office, all from a cellular phone. The next generation of wireless communications utilizing 3G technology will go even further by offering fast, broadband Internet access and location purchase features that sound more like a science fiction novel than reality

Last year, more than 20 million new subscribers signed up for cellular service. Estimates vary, but roughly 70 percent of the European population and 50 percent of the U.S. population own cellular phones, and the numbers are steadily growing. Despite the recent economic slowdown, it appears that people just can't live without their cellular phones. While it is doubtful that subscriber rates will come close to last year's skyrocket figures, the industry does not seem to be taking much of a hit. Sprint PCS reported a customer base increase of 875,000 in first quarter subscriber numbers this year, and many other wireless service providers weren't far behind.

With these numbers, it's no surprise that wireless companies and cell phone manufacturers spend millions on advertising to keep the cash registers ringing. With more than 7 million subscribers in 1997, AT&T Wireless spent a reported $114.3 million in measured advertising. That same year cellular phone manufacturer Motorola spent $14.8 million, and Ericsson spent $47 million to get the word out.

WHAT'S HOT

In spite of the advances in cellular phone capability, wireless customers nationwide have been slow to buy into the newer, more expensive technology New Mexico wireless companies see the same trend.

"Most wireless customers are looking for affordable wireless phone service to communicate with family and business contacts," Dallas Smith, General Manager of Cellular & More in Albuquerque said. "They aren't concerned about dumping stocks or checking sports scores on their phones." Many New Mexico cellular providers report that customers prefer a basic cellular phone and service without the newest bells and whistles. Smith reports that simple plans and affordable phones sell the best.

"Right now, many of our customers ask for Cricket Wireless." Smith said. A division of Leap Wireless International Inc., based in San Diego, Cricket Wireless offers a local alternative to national outfits such as AT&T Wireless, Sprint PCS, Voicestream and Verizon Wireless. Unlike the national providers, Cricket offers pre-paid local service with no lengthy contracts or rate plans. For a low monthly rate, Cricket users are given unlimited local usage with a prepaid long-distance option.

One disadvantage to Cricket is a lack of choice in cellular phones. Since service is limited to a local area, the company offers only two phones with its service, ranging from $99.95 to $129.95. Both models offer basic cellular capabilities, but do not offer high-end capabilities such as Internet access. While Cricket may not be a good option for people who regularly use long-distance minutes or businessmen wanting to read a headline downloaded to their phones, Cricket is a popular choice for those who mostly make local calls. In fact, many Cricket customers, including college students and single working adults, are choosing to use Cricket cellular phones as their primary home phone.

More traditional wireless services offering rate plans and one-to two-year contracts allow customers to use a specified amount of minutes for both local and long distance use. Cellular phones range in price from no charge with a contract to more than $900, and offer a myriad of services and extra features, including photo caller ID. While most people ask for digital roaming, rural customers may still prefer analog service, which offers a broader calling area. Dual band phones are available with both analog and digital roaming, but be forewarned that calls from analog areas can carry an extra charge.

If you're looking for bargains, they are not difficult to find. Cellular stores regularly offer promotions or manufacturer rebates on phones, and often offer senior, military or student discounts. Comparison-shopping also may pay off, as many stores will meet or beat competitors' prices. Internet specials are often lower than store prices, as well.

NOT A PERFECT PICTURE

All of this technology and convenience has not come without a price. The cellular phone explosion in large part has led to New Mexico's notorious new 575 area code. Affected residential phone users in Albuquerque and Santa Fe won't be the only ones grumbling about the new area code. Within a specified time from initiation of the new area code, every cell phone user within that area will have to visit a service provider to have the phone reprogrammed or be walked through the process over the phone. In addition to the hassle for cellular customers, this change will be an expensive and timely process for service providers, who will be forced to mail information to customers about the reprogramming process and train employees how to do it.

Increased cellular phone use has also drastically decreased pay phone revenues, which may lead to the extinction of the coin-operated pay phone. Nationwide, many pay phone suppliers have raised rates on coin operated phones to recoup losses incurred due to decreased use. In fact, in May Qwest announced a rate increase from 35 cents to 50 cents on its pay phones. Other suppliers are simply throwing in the towel and placing the pay phones up for sale.

THE WIRELESS WEB

According to International Data Corporation, 3.6 million U.S. wireless subscribers had Web-browsing capabilities in 1999. That number is expected to grow to 40.4 million by 2003. Although the wireless buzz has focused on new cellular phone Web capabilities and text messaging, sales have not taken off. Several reports indicate that roughly one out of seven people with Internet accessible phones actually use that technology, and many people still prefer to access the Web using a computer.

Dallas Smith agrees. "We have the Web-accessible phones available, but not a lot of people are biting."

A number of factors have contributed to slower Internet capable phone sales and use. Access to the web from a cellular phone is slow compared to a computer, and screens have a limited viewing area of up to ten lines. Writing e-mails using a ten-key pad is time consuming and sometimes confusing. Limited availability makes access undependable and in some areas unavailable. Units can be expensive, costing around $500 for a dependable model, and many of the tasks can simply be done faster and/or easier using a computer or telephone.

Many Web marketers are looking to jump on the bandwagon by working on cellular phone advertisements. SkyGo wireless, a marketing provider in Boulder, Colo., is already conducting cellular marketing trials in which advertisers including Subway CompUSA, Kinko's, and KFC sent coupon offers, promotions and trivia questions to a test market of Web-capable cellular phone users.

A LOOK AT THE FUTURE

The next generation of cellular phones, not due to hit the market for several years, is 3G (Third Generation) cellular technology, with which developers hope to provide high-speed data transmission with super fast "broadband" web access. Nokia, Motorola and Ericsson prototypes feature touch screens, computing power and internal cameras. Handsets would have the capability to pay for merchandise, electronically open doors, access live video images and download music using MP3. To accommodate cameras and a larger screen, 3G phones may be a bit larger than the sleek, compact models available today

Last July, the British government held an auction for five 3G licenses to be utilized once the technology is publicly available. Although 3G technology is still in the experimental stages, five wireless companies paid a total of $34 billion for the U.K. licenses. Estimates set the price tag for new transmission towers and other equipment at another $100 billion. At that rate, 3G phones may have a price tag higher than Europeans are willing to pay.