It's all in the features How PrimeCo plans to make its service different >BY JASON MEYERS, Wireless Networks Editor

Wireless industry pundits have criticized personal communication services providers for not going the distance on pricing. The service available, they say, is too similar in price structure to cellular service.

The carriers disagree, saying that wireless competition is not only about price. Among them is PrimeCo Personal Communications, which recently turned up code division multiple access networks in 15 cities-becoming the first U.S. wireless network operator to do so at 1.9 GHz.

"PrimeCo did not try to beat cellular on price," said Mark Lowenstein, vice president of wireless research at The Yankee Group, Boston (see figure for comparison of Chicago market prices). "They are very focused on the simplicity of service and enhanced features.

Indeed, PrimeCo barely mentioned the base costs of its offering when it launched service. The carrier focused instead on dispelling the mystery of wireless service.

"One of the barriers to wireless is apprehension over sticker shock," said PrimeCo Chief Executive Officer Ben Scott. To alleviate that, PrimeCo service carries flat rates for in-region use, no service agreement, no activation fee, detailed billing, first incoming minute free and real-time billing available via the handset display. "The customer sets the terms and conditions," Scott said.

Because PrimeCo is a relative unknown to mainstream consumers, its PCS marketing highlights those accessible features in a familiar, non-threatening setting. In addition to PrimeCo stores in various markets, the carrier is distributing service through Best Buy, Circuit City, Computer City, Incredible Universe, Office Depot and Radio Shack.

The PrimeCo stores in particular offer customers a hassle-free environment where they can get hands-on exposure to the new features, said Karen Little, vice president of marketing at PrimeCo. "If you try it, you'll absolutely get sold on it," Little said.

Accompanying that is an aggressive marketing and advertising campaign intended to boost the PrimeCo brand name, which faces the hurdle of being unfamiliar. But the wireless industry has not developed a reliance on brand, Little maintained, and PrimeCo intends to exploit that fact.

"We wanted to establish a strong brand in a category that we don't think has developed brand loyalty," Little said.

Issues of pricing aside, PrimeCo is banking on the high quality of its networks and new views on service quality to differentiate it in the wireless market.

"The orientation is around customer friendliness, features and voice quality," said Lowenstein.

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