Combine and conquer

Today's wireless marketplace, estimated at $19 billion and vying for 85 million customers nationwide by 2000, offers a fierce battlefield for competitors. There are now-or soon will be-five facilities-based wireless providers in most major cities throughout the United States. As players enter this time-critical environment, prices decrease on average approximately 10%. With competition so intense, market entrants are employing a high level of promotional activity, with a strong focus on mobility-much as we saw with the development of the cellular industry.

Moreover, while 1997 continues to be a dynamic year for the telecommunications industry with an influx of "turned-up" providers, customer information and knowledge is at a premium. In fact, targeted customers are coming to know and expect choice and superior customer service, with 24x7 service as a cost of entry.

Reliability and voice quality is assumed. Customers are not as interested in what is takes to develop and operate the network and its new technology, concerned instead with security, no dropped calls and improved voice quality. Our research indicates that customers need the convenience that wireless offers, the familiarity of their existing phone service and the ability to never miss a call.

Tapping into the future of personal communication services in 1995, U S West developed a plan to achieve 50% market penetration and enhance the customer bundle while increasing sales of existing wireline products. In 1996, we won licenses to provide PCS in 53 markets with 20 million pops in our 14-state territory.

We directed our wireless strategy toward the goal of differentiation via intuitiveness, simplicity, product utility/relevance and integration. Recognizing our ability to leverage our landline platform, we decided to bring a tighter weave to the fabric of wireless service by integrating our current wireline systems with our newly developed information systems, offering bundled service with one-number integration for customers' home or office phones.

By developing this seamlessly integrated platform, we have enhanced our ability to segment and target. We can now bundle wireless with other U S West products to offer a complete solution and offer one sales call, one bill and one contact for service. The combination of all those factors will allow U S West to make an initial impact in a penetrated market, demonstrate long-term profitability and build for agility-three key benchmarks for what should be long-term success.

U S West and other incumbents can offer a total solution in which wireless and wired aren't separate concepts. Not only do they work together, they build upon a carrier's indigenous base, brand awareness and presence throughout its region.

A recent survey by J.D. Power and Associates indicates that customer confusion in the industry is continually on the rise. The survey says that the most successful carriers will be those that leverage a strong brand and promote their added benefits. While market entrants continue to offer competitive pricing plans, consumers are actually gravitating toward a recognizable brand name from a company they can trust.

We developed Access2 Advanced PCS as a direct result of the need to differentiate ourselves from the competition and respond to customer demands for simplicity, familiarity and control.