65% of Telecom Analysts See Price Sensitive Users Gravitating to Wireless over Wireline, Says pulver.com.Business/Technology Editors MELVILLE, NY--(BUSINESS WIRE)--Jan. 18, 2001 pulver.com released the results of a poll that asked over 300 telecom analysts their view on price sensitive users as the growth engine for the wireless conversion trend. Does wireless telephony telephony without wires, usually employing electric waves of high frequency emitted from an oscillator or generator, as in wireless telegraphy. A telephone transmitter causes fluctuations in these waves, it being the fluctuations only which affect the receiver. See also: Wireless approach the tipping point The point in time in which a technology, procedure, service or philosophy has reached critical mass and becomes mainstream. See network effect. See also tip and ring. for attracting price sensitive users? Yes - 65% - due to price advantage, desire for single number and bill, and unhappiness with RBOC (Regional Bell Operating Company) The Bell telephone companies that were spun off of AT&T by court order in 1984 (the Divestiture). Also known as the "Baby Bells," the initial seven RBOCs were Nynex, Bell Atlantic, BellSouth, Southwestern Bell, US West, customer service. No - 25% - due to lack of price advantage, ease of use, reliability, modem support, and end user awareness. Not sure - 10% - due to difficulty in comparing prices, potential wireline price decreases, and quality. This pulver.com poll is based on an email questionnaire sent to telecom analysts between January 15-16. The margin of error for the overall results is plus or minus 5 percentage points. The poll follows a recent study by pulver.com that revealed price reductions give wireless services price parity with wireline services. The report, entitled "Telephony Unplugged: Wireless Achieves Price Parity with Wireline," compares the monthly charges for wireline service provided by Verizon (NYSE NYSE See: New York Stock Exchange : VZ) with wireless service provided by Nextel (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : NXTL). "The wireless industry has erased the 20 fold price advantage enjoyed by wireline in 1984 completely changing the business case for who represents a potential wireless customer," noted Jeff Pulver Jeff Pulver is the Chairman and founder of pulver.com, and a founder of the VoIP industry. Pulver is the chief writer of what's referred to as "the Pulver Order", which was adopted in 2004 by the Federal Communications Commission as the first FCC ruling regarding internet , CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , pulver.com. Local calling accounts for 60% of the average US residential telephone bill, but the absence of a significant local service churn rate (1) The percentage of customers who cancel their online, cellphone or other subscription service during a certain time period. (2) The percentage of employees who leave the company during a certain time period. See churning. demonstrates the lack of options for the price sensitive user. "As long as wireless remained even slightly more expensive than wireline, the status quo [Latin, The existing state of things at any given date.] Status quo ante bellum means the state of things before the war. The status quo to be preserved by a preliminary injunction is the last actual, peaceable, uncontested status which preceded the pending controversy. seemed stable with people favoring use of wireline phones over wireless phones where possible," noted Daniel Berninger, Managing Director of pulver.com and principal author of the report. As wireless telephony becomes less expensive, it crosses the tipping point of price parity with wireline making at least 26 million price sensitive residential users potential subscribers. The prospect of a new growth engine for wireless represents good news for an industry facing maturation of its traditional business user base. "The residential subscriber represents a particularly attractive customer for the wireless industry as their usage patterns complement business usage as evidence by pricing plans that include unlimited usage during evenings and weekends," said Eric Rasmussen, Senior Consultant, Telechoice. About pulver.com: Jeff Pulver founded pulver.com at the end of 1994. In addition to producing the highly successful VON conferences, pulver.com is engaged in many activities that promote growth in communication technology. The pulver.com website (http://pulver.com) is a key source of information for those in the IP Communications industry. Jeff Pulver's The Pulver Report (http://pulver.com/reports) is a widely-read source of information on the latest developments in emerging net technologies. |
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