Walkie-talkie Idea Popular
Newcastle Herald
Monday March 17, 2003
IN a throwback to a time before mobile phones were invented, US wireless telephone companies are hoping a World War II-vintage communications concept will attract new customers.
They've set their sights on a walkie-talkie-like feature that allows cell phone users to connect instantly with the push of a button instead of dialling a number and waiting for the call to go through.
``It's good news for the industry because it's an important feature," independent telecommunications analyst Jeff Kagan said.
Meanwhile, about half of the US population now owns cell phones, making it harder to add new customers.
For a decade, the fifth-largest US wireless operator, Nextel Communications Inc, has held a virtual monopoly in offering ``push-to-talk" to a niche market of construction crews, technicians and government agencies.
And despite a recent market slump, Nextel stands out in the wireless industry with its leading revenue-per-user and customer retention rates.
While larger rivals have been threatening to crash the party with similar features for some time, concrete plans for the new service, including the basic technical standards needed behind the scenes, are now taking shape.
AT&T Wireless Services Inc expects to test a push-to-talk service in Seattle in the fourth quarter of 2003.
© 2003 Newcastle Herald
