To: Caxton Rhodes who wrote (33060 ) 6/24/1999 2:22:00 PM From: Ruffian Respond to of 152472
Caxton,> From the June 21, 1999, issue of Wireless Week RCS Wireless Tries To Find Niche By Peggy Albright SAN FRANCISCO--Armed with the slogan, "Wireless Comes Home," a small local exchange carrier near Sacramento, Calif., last week introduced wireless services that it is pitching as locally owned and designed for local use. RCS Wireless, a subsidiary of Roseville Communications Co., positions itself as a local alternative for residential customers needing an additional phone line for a fax or modem. Rather than installing that extra line, the company says, adopt a code division multiple access unit as a secondary phone that can be used at home or around town for voice and--eventually--data services. The approach is another example of how local exchange carriers are using wireless to diversify their product offerings, enter new operating territories and create new revenue streams. "It should provide an encouraging signal to other midsized companies that there is a way to carve out a niche and compete with national carriers," said Bob Burger, general manager of RCS Wireless. RCS Wireless operates using four licenses obtained by RCC in the E-Block personal communications services auctions. The licenses cover the Sacramento, Stockton, Modesto and Yuba City basic trading areas, reaching into 16 counties to serve a potential 3.5 million POPs. RCS will compete in various parts of its service territory with AT&T Wireless Services Inc., AirTouch Cellular, Nextel Communications Inc., Pacific Bell Wireless and Sprint PCS. The company will focus its service in Sacramento suburbs that it described as high-growth and high-tech and home to companies such as Intel Corp., Hewlett-Packard Co., NEC Corp. and Oracle that have established facilities outside Silicon Valley. Services launched last week included the communities of Roseville, Citrus Heights, Granite Bay, Rocklin and Folsom. Service will next evolve southward toward downtown Sacramento, to its Elk Grove suburb and into the Central Valley. RCS then will expand north to Yuba City, east to Lake Tahoe and then to Modesto. To corral in residential users as well as commercial customers that will benefit from its digital services, Burger said RCS is saturating residential communities and large business parks with cell sites to achieve coverage that will allow high in-building penetration. The carrier is differentiating itself from national companies with pricing plans emphasizing local service and by pushing its handsets from company-owned showrooms designed to attract customers such as art galleries. Two flat billing rates are currently available. A $39 package includes 1,000 minutes for calls within the 916 area code; additional minutes, billed at 7 cents per minute, are charged in six-second increments--an approach RCS will use to lure customers from existing wireless carriers. The $79 plan offers unlimited local calling. For either plan, long-distance is billed at 10 cents a minute, and roaming is billed at 50 cents a minute. Service includes voice mail, call waiting, caller ID, three-way calling and call forwarding.