AirTouch Prepaid Offer Opens Doors to New Cellular Customers; Lowest Prices, More Convenient Retail Outlets
Will Expand Wireless Market
Business Wire - April 21, 1999 11:39
SAN FRANCISCO--(BUSINESS WIRE)--April 21, 1999--Tapping into a huge potential market
for new cellular customers, AirTouch Cellular, a unit of AirTouch Communications, Inc. (NYSE: ATI),
is setting new value standards for its prepaid phone service by offering the industry's lowest prices and
making it available through several thousand convenient retail outlets.
AirTouch said today it has cut prices for prepaid service across all its cellular markets in 17 states to as
little as $0.35 a minute -- the lowest of any major carrier in the nation. To make the product more
accessible than ever to customers, it also announced distribution deals with 7-Eleven, Circle K, Radio
Shack and Best Buy stores, as well as hundreds of other convenience stores and gas stations. The
service is also available through AirTouch Cellular stores and participating AirTouch distribution
channels.
"We are democratizing the cellular industry by giving affordable and convenient service choices to
people who have never enjoyed the benefits of wireless communications," said Arun Sarin, President
and Chief Operating Officer of AirTouch Communications. "The option to pay in advance will appeal
to a broad range of people who want to control their costs, forgo monthly fees or get service without
credit. When customers see the exceptional value we offer, they will come to us and stick with us."
AirTouch customers can now buy a broader range of prepaid service cards than ever before, in
denominations of $30, $50 and $100. With prepaid service, users pay no monthly subscription
charges. The life of the cards has also been extended from 60 days to 90 days to fit diverse individual
needs.
First-time cellular users can buy a Prepaid Package for a suggested retail price of about $80, which
comes with everything they need to "cut the cord" and enjoy the freedom of wireless communications.
The package includes an Audiovox phone and a prepaid card good for 30 minutes of talk time.
(Customers who already have phones can buy a $30 starter kit with 60 minutes of talk time and
instructions for getting up and running.)
Customers can activate the service with a simple, toll-free call to 1-888-BUYTIME. AirTouch service
representatives will explain how the program works, terms and conditions of service, where to buy
replenishment cards and answer any questions. Printed materials in the box and telephone assistance
are available in Spanish.
Prepaid service is ideal for people who have felt uncomfortable with monthly service obligations and
those with credit problems. It also appeals to budget-minded customers, such as students and small
business owners, who want to control their spending.
Many analysts believe the prepaid market could be huge if carriers make the service affordable and
convenient. Only about five percent of U.S. cellular customers are prepaid, compared to 35 percent in
Europe. European cellular carriers now count on prepaid for two-thirds of all new customers. In the
United States, on the other hand, service providers still typically turn away a third or more of walk-in
customers because they lack credit or are too young to sign a contract.
Industry analysts believe AirTouch's new approach to prepaid will find a large American audience.
"This is a good, aggressive plan to reach an underserved part of the market," said Ken Hyers, author
of a recent study of the prepaid market for Cahners In-Stat Group in Newton, Mass. "This is an easy
option for people to get into wireless."
Adam Zawel, a wireless analyst with the Yankee Group in Boston, said, "This new offering opens the
door for AirTouch to penetrate large segments of the untapped market for prepaid services. Potential
prepaid customers will find that prepaid-to-postpaid price premiums have nearly disappeared for low-
and mid-tiered price plans."
AirTouch serves 8 million U.S. cellular customers and operates in 22 of the top 30 U.S. markets,
including Los Angeles, San Francisco, San Diego, Atlanta, Detroit, Cleveland, San Jose, Sacramento,
Cincinnati, Kansas City, Seattle, Portland (Oregon), Denver, Phoenix, and Minneapolis.
AirTouch Communications is the largest wireless company in the world based on the more than 40
million customers served by its global ventures. AirTouch has more than 17 million customers based on
its ownership share in cellular, paging, and personal communications services in the United States,
Belgium, Egypt, Germany, India, Italy, Japan, Poland, Portugal, Romania, South Korea, Spain, and
Sweden. Airtouch also has an interest in the Globalstar satellite system. On January 15, 1999,
AirTouch and Vodafone Group Plc announced a definitive agreement to merge. If consummated, the
transaction would result in the creation of a global wireless company with more than 27 million
customers in 23 countries.
For a fax copy of this or other AirTouch press releases, please call 800/344-7531 or visit the
AirTouch web site at www.airtouch.com.
CONTACT: AirTouch Communications
Jonathan Marshall, 415/658-2209
Kathy Reinhart, 415/658-2042
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