[comp.dcom.telecom] Cellular Marketing

ken@sharkey.cc.umich.edu> (08/17/90)

I'm beginning to suspect that cellular phones have no basis in
reality, as we know it. If this country gets any closer to recession,
a lot of people trying to get rich off of cellualar are going to be in
for a rude shock.

Consider the following print ad I saw recently: A person sitting in an
airport terminal, talking to someone on a cellular phone. The blurb
below: "Think of how much more productive you could be with a cellular
phone."

Uh, what's wrong with this picture? Let's see. I could spend .60+/min
to use my cellular phone (plus roaming rates, etc), or I could pick up
the pay phone right behind me and spend .25/min or less.

Top two uses of a cellular phone based on my accidental tuning of
cellular frequencies:

     1) Person A claiming that Person B doesn't understand him/her and
        wondering when the next time he/she could get together with 
        Person C.

     2) Cellular salescritters talking about the latest rate increase
        and the kickbacks their getting from the carriers.

Just seems like the whole industry is built on a shakey foundation.


Ken Jongsma                   ken@wybbs.mi.org
Smiths Industries             ken%wybbs@sharkey.umich.edu
Grand Rapids, Michigan        ..sharkey.cc.umich.edu!wybbs!ken 

jill@midway.uchicago.edu (jill holly hansen) (08/20/90)

In article <11010@accuvax.nwu.edu> wybbs!ken@sharkey.cc.umich.edu (Ken
Jongsma) writes:

: I'm beginning to suspect that cellular phones have no basis in
: reality, as we know it. If this country gets any closer to recession,
: a lot of people trying to get rich off of cellualar are going to be in
: for a rude shock.

: Consider the following print ad I saw recently: A person sitting in an
: airport terminal, talking to someone on a cellular phone. The blurb
: below: "Think of how much more productive you could be with a cellular
: phone."

: Uh, what's wrong with this picture? Let's see. I could spend .60+/min
: to use my cellular phone (plus roaming rates, etc), or I could pick up
: the pay phone right behind me and spend .25/min or less.

The poster seems to make making two statements:

1) "cellular phones have no basis in reality"
2)  pay phones are cheaper than cellular phones

The second point is correct, while bogus. The first point is just
plain bogus.

1) "cellular phones have no basis in reality"

Do you remember when hand-held calculators were introduced in the
early 70s?  They then cost at least $100 for units with limited
functions, and many of my colleagues couldn't understand why I could
pay that much when a slide rule did the job just as well. Cell phones
started out at $3,000; now you can get a transportable for $100 that
you can leave under the front seat of your car for emergencies.  In a
few years, cell phones *are* going to be as ubiguitous as pocket
calculators.  And that means that *someone* is going to do well if not
get rich.

2) pay phones are cheaper than cellular phones

Certainly true. However, when I am stuck in an airport with my garment
bag, my brief case, and my envelope full of 11 x 14 documents that I
*need* to refer to when calling back to Chicago to discuss changes in
the client's specs, I certainly don't want to have to do all this
business from a payphone in a noisy hallway.

Admittedly, I would rather make such a call from an quiet office, but
failing that, I can park myself in an unused airport waiting area or
at a restaurant table, spead my papers out around me, and then do my
business on my cell phone.  Considering that a business trip easily
costs upwards of $200-$400/day exclusive of air fare, the roaming fees
for the cell call are a small matter.

Then, when I get back to O'Hare, instead of waiting for a payphone to
check in with voice mail, I can grab a cab and do business as we creep
down the Kennedy.

Productive? I would like to believe so.


     Jill Holly Hansen  
jill@midway.uchicago.edu


[Moderator's Note: Your mention of the high prices of the early
calculators brought back some nostalgia. I bought a TI-58 and a TI-59
programmable calculator from Texas Instruments in 1976. They cost
almost five hundred dollars each! That included the little printer
device you mounted underneath the calculator. And my very first 'home
computer' was the Ohio Scientific 'Challenger', model C-1-P. It had
all of 4 K-bytes of ram. I got it early in 1977, and it cost a mere
six hundred dollars. I converted it to 8 K ram and installed a 'lower
case chip' by bravely following the instructions in some hobbyist
magazine I found. My friend bought an Apple II with 64 K a couple
years later and I wondered, what do you need *that much* ram for? :)  PAT]

ken@sharkey.cc.umich.edu> (08/21/90)

In her reply to my original post on the economics of Cellular Phones,
jill@midway.uchicago.edu correctly points out that there are some very
valid uses of Cellular Phones. I think we both agree that there must
be a cost benefit trade off when using any business tool. However,
based on my limited sampling of calls in one city, at various times of
the day and night, Cellular Phones have a very high degree of misuse.

1) Jill's example of setting up an office at a quiet gate is a good
use of the tool. However, would it be cheaper to use a desk in the
airline "Red Carpet Club"? Maybe, maybe not. Cost benefit again.

2) The analogy regarding calculators is a good one. Let's look at
where we are on the technology curve though. I think we're still at
the beginning stages of cordless, personal communication devices.
While the costs of the cellular phone are low, the overall cost of
service is much higher than wireline service. It's much less expensive
to run a radio tower to 1000 customers than it is to bury cable to
those same customers. I suspect the novelty of the service and the
lack of real competition is keeping rates much higher than they could
be.

Note: I realize that LA is running out of capacity, but in most of the
country, scarcity of capacity is not a factor in pricing.

Cellular has it's place. It's just being misused in many cases.


Ken Jongsma               ken@wybbs.mi.org
Smiths Industries         ken%wybbs@sharkey.umich.edu
Grand Rapids, Michigan    ..sharkey.cc.umich.edu!wybbs!ken 

rich@pro-exchange.cts.com (Rich Sims) (08/24/90)

In-Reply-To: message from wybbs!ken@sharkey.cc.umich.edu (Ken Jongsma)

> Cellular has it's place. It's just being misused in many cases.

If the individual using the cellular phone is paying for such use, and
they're not using it for illegal activities or to harass and annoy
other folks, how can it possibly be construed as "misuse".  If such
were the case, I'd guess that we've been "misusing" the telephone
since Day One!!