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To: gdichaz who wrote (8192)	4/1/2000 8:46:00 PM
From: Eric L	Respond to of 13582

Chaz, Re: CPP Excuse please, if already posted. >> CALLING PARTY PAYS TO BOOST WIRELESS USAGE instat.com Despite its lack of success to date in penetrating the U.S. wireless market, Calling Party Pays (CPP) service will make inroads and elevate wireless usage, according to a new report by Cahners In-Stat Group. "If CPP is made available to U.S. consumers on a uniform nationwide basis, it will play a significant part in driving wireless use to new levels," says Kenneth Hyers, a Cahners In-Stat Group analyst. CPP - which allows cellular or PCS subscribers to answer the phone without having to foot the bill - is the norm in Europe and other regions. Observers credit CPP as being a significant driver of high wireless penetration overseas. In some countries with CPP, 60 percent of the population has wireless phones. And, that's why carriers such as Bell Atlantic and Vodafone AirTouch have concluded that CPP will help them to penetrate the U.S. consumer market and increase wireless usage. The recently announced alliance between these two carriers means that CPP will have a large advocate in the United States. Local exchange carriers (LECs) oppose CPP, believing it might drive calls off of their networks and could lead to customers adopting wireless as their primary, or only, voice telephone service. Though CPP has been test marketed numerous times in the United States, only 2 percent of business users subscribe to it today. However, Hyers says there is demand for it because those 2 percent use the service 29 percent of the time. Adoption rates would be even higher if CPP were available on a widespread basis, he says. Supporters of CPP argue that an imbalance exists today in how wireless networks are used compared to wireline networks. The ratio of inbound to outbound calls on wireless networks in the United States is about 25/75, according to the Cellular Telephone Industry Association. That compares to about a 50/50 split on wireline networks. The primary reason for this imbalance, according to CPP advocates, is that wireless users are reluctant to give out their phone numbers and refuse to accept calls because they don't want to pay for them. In Europe, with CPP, the inbound/outbound ratio is close to 50/50. The Federal Communications Commission is drafting guidelines to ensure that a nationwide standard is put in place to notify CPP subscribers that they will be charged for calls. The FCC is also working to ensure that an effective billing and collection system is created to allow wireless carriers to receive revenue from CPP calls. Once the FCC puts guidelines in place, CPP will make gains in the wireless market. But until that time, there is a danger that a hodgepodge of different standards will evolve, causing confusion for customers. "When carriers introduce a new service, they need an adoption rate of 10 percent to consider the effort a success," Hyers says. "Cahners In-Stat Group believes that with nationwide CPP, carriers will reach the 10 percent target within five years." << - Eric -