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To: slacker711 who wrote (120557)6/17/2002 12:54:41 PM
From: waitwatchwander  Respond to of 152472
 
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bayarea.com

Posted on Sun, Jun. 16, 2002
By Kamika Dunlap
Mercury News

Ah, the sounds of summer. Throngs of teens jamming malls, music stores, concerts and sporting events. This summer, another sound will be much in evidence just about everywhere the kids are: the musical ring of a cell phone.

Having nearly exhausted the market for adult consumers, wireless communication carriers are turning their attention to teens.

``It's reached a level of saturation but there are still opportunities for growth,'' said Nick Montes, a marketing executive with Verizon Wireless. ``We're marketing to both teens and their parents.''

Verizon and competing carriers such as Cingular Wireless and Sprint PCS are battling for the youth market with flashy and hip print, radio, and television advertising campaigns. The wireless carriers are also partnering with existing teen brands to sell their services to kids.

``I feel like it's finally my turn for a cell phone,'' said Rosie Copas, 18, of San Jose. Her parents purchased the phone for her last year. ``My friends had it, my mom had it and I wanted one too.'' About 38 percent of teens own wireless phones, according to Teenage Research Unlimited, a Northbrook, Ill.-based consumer research company. The number of young customers ages 10 to 24 will grow from 11 million today to more than 30 million in 2004, according to the firm. Last year, teens accounted for more than $150 billion in U.S. spending.

The companies are using the same basic tools to lure teens as adults: Plans with low rates and tons of airtime minutes. But they're also tailoring some of their plans specifically for the family market. With, for example, pre-paid plans that allow parents to put a cap on usage. Another popular option: family plans in which family members share one pool of minutes and can call each other's cell phones for free.

Although many of the advertising messages appeal to kids, they are also aimed at adults who ultimately make the buying decision and pay the bills. ``If kids want a cool, hip phone it's a solution for both because parents want the phone for convenience and safety,'' said Stephanie Walsh, a Sprint spokeswoman. ``You can have constant contact with your child to schedule a pickup and not worry about them standing on a corner or waiting at a bus stop.''

There is no agreement on what is driving the demand for cell phones among teens. Some family communication experts and parents say teens are driving the trend, with their need to constantly stay in touch while participating in extracurricular activities, working and hanging out with friends.

``It's easier for her to call and say `I'm running late,' '' said Virgie Medrano, of Union City, explaining she bought her daughter, Monica Esqueda, 17, a cell phone because she found pagers and public phones to be an inconvenient method for checking-in. ``I don't want her walking to a pay phone if there is a change in plans and kids don't always have money for that.''

Andy Wood, an assistant professor of communications at San Jose State University, said that cell phones are becoming more popular among teens because of their busy lifestyles and full schedules. ``Kids are moving around so much that they can't be saddled down by land lines,'' said Wood. ``They are experiencing relationships in a more mobile way and want cell phones, instant messaging and e-mail to maintain that interaction.''

Telecom industry analysts say the carriers themselves are responsible for the explosion of the youth market for cell phones. David Ferris, founder of Ferris Research Services, a San Francisco company that studies messaging and other consumer technologies, said that wireless providers stir up the demand for cell phones with low pricing and savvy marketing to teens. ``They are clever ads aimed at kids similar to smoking,'' said Ferris. ``They talk the language of kids and use the imagery they like.''

Michael Doherty, a senior wireless analyst for Ovum, a global research company, characterized the teen segment as ``an attractive market because teens are technically oriented and they have lots of disposable income.'' That target market continues to get younger. The average age when kids get their first phones has dropped from 16 a few years ago to 13 or 14 now, according to Teenage Research Unlimited.

No matter what's driving the teen market -- teens themselves or aggressive marketing -- cell phone technology is changing the way parents and children communicate. The phones may even be increasing the amount of talk that passes between parents and kids.

``If I have something on my mind I can just call my mom and tell her what's bothering me,'' said Janelle Zetterquist, 16, of San Jose. ``The fact that I have my cell phone right then and there lets me get whatever I need off my chest.''

Janelle's mother, Jody Zetterquist, first bought her daughter a cell phone when she was in eighth grade because Jody wanted to feel plugged in and have more opportunities to talk to her daughter. At first, Jody kept the phone in a drawer and allowed her daughter to carry it only on limited occasions.

``She lost her phone a couple of times and I said if she lost the phone one more time she won't have the luxury of having a phone and I'll give her phone cards,'' said Jody. ``But I'm finding having a phone makes her feel just a notch more independent -- what she eventually has to be anyway.''

The Zetterquists rely on the phone to keep track of each other's schedules while Jody is at work and Janelle is training and traveling with her hockey, soccer and track teams.

``I would call not wanting to be pesky but just to say `what's the scoop?' '' said Jody.

For Rachael Gallegos, 18, of San Jose, the cell phone her parents bought her came in handy during an emergency. In April when she was involved in an auto accident, her first instinct was to call her parents.

``As soon as the accident happened I got freaked out and I thought `Oh my God, I have to call somebody' and it was a comfort to know that someone would talk me through this,'' said Gallegos.

``It helped me to make sure that everyone got the info about what happened.''

Typically the rules parents establish for cell phone use are dictated in large part by the terms of the cellular agreement. For example, teens whose phones were purchased under a ``family plan'' with a shared block of minutes must be very time-conscious. Caitlin Baiko, 18, of San Jose first got her cell phone when she was in eighth grade. Her parents took it away twice, she said, because she went over her share of minutes in the family plan. Each time she ran over, she had to reimburse her parents the $23 added to the family bill.

``I wanted my cell phone back and there wasn't anything I could do to get it back,'' said Baiko. ``It was really difficult for me to do things around school because I was working and had to call for rides or I had to go to a pay phone or borrow someone's cell phone.''

Baiko's cell plan minutes were divvied up between her mother and sister. When she exceeded her share of the minutes Baiko said it was because she spent an hour a day talking to her best friend and her boyfriend. ``Sometimes I'd have girl talk or when I get bored I'd just call to talk.''

Although it was a tough lesson, Baiko admits that learning how to respect her phone privileges has improved her relationship with her parents. She said it has helped to loosen things up a bit between them.

``Having a cell phone has made our communication more open. And it made them relax. It helps them to trust me more,'' she said.