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Wireless carriers bungle marketing strategy
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EE Times


The marketing strategies of U.S. wireless Internet carriers could backfire, causing long-term harm to the industry they are trying so hard to promote. In fact, their aggressive ad campaigns misrepresent what they actually deliver and confuse potential customers.

How have carriers gotten themselves into this mess?

In their zeal to leverage the American public's enthusiasm for the Web, they've given their services names like "Wireless Web" or "Mobile Web." The problem is that those monikers relate to most Americans' perception of the Web: large, bright color on desktop monitors that render sharp images. Tiny monochrome mobile phone handset screens can't come close to matching this image quality.

Couple that with the much slower speeds delivered by wireless Internet services vs. wireline, and the "wireless Web" bears little resemblance to the wireline Web. Carriers should acknowledge that.

Another unwise marketing strategy: ads touting "free" wireless Internet access. Even when offered as a part of a bucket plan (when customers buy a set number of monthly hours for a fixed price), wireless Internet service is no more free than voice service. Wireless data minutes add up just like wireless voice, and after customers exceed their allotted number of minutes, they pay extra.

The biggest marketing blunder, though, may be failing to target wireless Internet services for the most likely customers. So far, U.S. wireless Internet carriers have cast a wide net, trying to be all things to all people. Instead, carriers should target mobile business people, the industry's lowest hanging fruit.

U.S. carriers could take a lesson from NTT, Japan's telco giant. NTT's Docomo iMode service has been successful, with about 10 million subscribers as of August. NTT Docomo touts specific iMode applications for particular groups of customers: train schedules for commuters and cartoons for kids, for example.

Notice iMode does not have the word "Web" in it. Though the "i" in iMode stands for "Internet," Docomo does not tout the word "Internet" in its marketing, because the company does not want to imply a level of technology it doesn't deliver. Further, Docomo does charge for iMode service, and its pricing structure is clear to subscribers and prospects.

So, how can U.S. carriers apply these lessons to refocus their marketing?

  • Recognize that the consumer market is not likely to be as strong as the business market, at least for now.

  • Tailor applications for business travelers: messaging, flight scheduling, traffic reports and location-based services that can find the nearest Chinese restaurant, print shop or computer repair center.

  • As applications multiply, target services to specific markets instead of trying to capture everybody.

  • Be clear about pricing instead of disguising it.

These tactics may go against the grain of industry marketing strategies, but without a new marketing tack, U.S. wireless data carriers risk stunting a promising industry.

Rebecca S. Diercks is director of wireless research for Cahners In-Stat Group (Newton, Mass.).





The views and opinions expressed in this column are strictly those of the author and should not be taken as an editorial position of EE Times or any of its other editors, publications or Web sites.


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