re: Stephen Carter (Cingular) & Dennis Strigl (Verizon) - State of the Industry
* Strigl said properly developing applications the public wants means it could be two to three years before data revenues become noticeable. Carter also said voice revenues will remain dominant for the time being.
* Strigl said melding more than a dozen billing schemes into a coherent whole remains an issue for Verizon. Cingular is still working on assimilating widely different corporate cultures effectively, Carter said.
>> Wireless Industry Doing Fine, Execs Say
United Press International
June 05 2001
The current drumbeat of negative press about the wireless industry is unfounded, said two telecom leaders in remarks Monday morning at the SuperComm convention.
Stephen Carter, CEO of Cingular Wireless in Atlanta, and Dennis Strigl, CEO of Bedminster, N.J.- based Verizon Wireless, both kept an upbeat tone in assessing the industry, including the approach being taken to third-generation (3G) wireless networks.
"We don't see the road to 3G as a racetrack," Carter said. "Some people say Japan and Europe have gotten ahead of the game, but worldwide over time, the technology is going to become a commodity. We're all going to catch up to each other ... we need to focus on applications for the networks and devices we have today."
Exponential growth in usage - short messaging services will have hundreds of millions of users soon, Carter said - is providing wireless providers with plenty of opportunities to succeed. But that growth also means companies must keep the human side of the equation in mind, and roll out safe and sane uses for the technology, he said. Otherwise, the current argument over cell phone use in cars and public places will be endlessly repeated.
The industry must also remember the lessons of its Wireless Application Protocol experience, Carter said. WAP was marketed too hard, failed to live up to its expectations and ended up souring the public on wireless data services, he said. Wireless companies must ensure their future offerings don't similarly fall on their face.
Strigl emphasized that, despite the negative connotations of today's headlines about wireless services, the industry remains on-schedule to roll out 3G services. Companies have to remain focused on the basics, however, or face the consequences.
"Without high-quality networks, simple price plans and responsive customer service, the wireless industry could find itself in the crosshairs of regulators who want to regulate our service levels," Strigl said.
But the sky isn't falling, he said. The industry's embedded base of users has reached the mass-market level, and it has a strong, mature core product in the network it has already deployed.
"I'm very bullish on this industry," Strigl said. "Wireless is on the fast track of becoming the centerpiece for customers to send, receive and transact communication, information and Internet-based services anytime, anywhere."
Matt Flanigan, president of the Telecommunications Industry Association and moderator of the session, asked both executives when they expected data services to provide significant revenue. Strigl said properly developing applications the public wants means it could be two to three years before data revenues become noticeable. Carter also said voice revenues will remain dominant for the time being.
Cingular and Verizon are each an amalgam of several smaller wireless providers, and Flanigan, asked the executives about challenges their companies have faced during their formative stages. Strigl said melding more than a dozen billing schemes into a coherent whole remains an issue for Verizon. Cingular is still working on assimilating widely different corporate cultures effectively, Carter said. <<
- Eric - |
