Wireless Carriers! Focus On Vertical Markets and Occupations to Attract Digital Subscribers, Reports Cahners In-Stat Group

Business Wire, August 2, 1999

NEWTON, Mass.--(BUSINESS WIRE)--Aug. 2, 1999--

Recent research by Cahners In-Stat Group reports that the number of wireless users subscribing to digital services will overtake that of analog users by 2000.

This year alone the high-tech market research firm expects 19 percent of business users currently subscribing to analog wireless service will switch to digital service.

In their market research, Cahners In-Stat Group found that digital users are not as cost-conscious as analog users. While both analog and digital users say price would be the greatest influence for them to change carriers, digital users are more influenced by other features, such as national coverage and sound quality. -0-

Cahners In-Stat Group also reports:
--   Digital carriers will continue to add high-value customers (i.e.,
     32 percent of "heavy" wireless users and only 14 percent of
     "light" users are expected to make the switch this year)
--   More people in the sales/marketing and engineering/MIS
     professions will switch to digital technology
--   A greater proportion of analog users in the retail/wholesale
     trade industry plan to upgrade to digital technology than in any
     other vertical market

"Carriers offering simple 'bucket plans' with the goal of adding digital users by appealing to their pocketbooks will find that will not work indefinitely," said Becky Diercks, director for Cahners In-Stat Group's Wireless Group.

"To get digital users, carriers will need to be creative and tailor their marketing and sales programs to appeal to prospects in specific occupations and vertical markets." Research indicated that today, "executives/owners" and "utilities/communications" are two groups with the highest percent of digital users by job function and vertical market, respectively.

The report, Digital Wireless Customer Profile, No. WP9908MP, provides forecasts for digital subscribers in the United States through 2003 and details the demographics and usage habits of analog and digital subscribers. The experiences of some select carriers and their company statistics for analog vs. digital customers are also reviewed.

Cahners In-Stat Group (http://www.cahnersinstat.com) is a high-technology market research firm with comprehensive understanding of computer and convergence, networking, wireless, telecommunications, Internet and semiconductor markets.

Headquartered in Newton, offices are also located in Scottsdale, Ariz. and San Jose, Calif. Cahners In-Stat Group is part of Cahners Business Information, the largest publisher of specialized business publications in the United States and a division of Reed Elsevier.